Latest 8011 Test Report - Technical 8011 Training

Rated:

, 0 Comments

Total visits: 1

Posted on: 04/03/25

Our PRMIA 8011 exam questions are designed to provide you with the most realistic 8011 Exam experience possible. Each question is accompanied by an accurate answer, prepared by our team of experts. We also offer free PRMIA 8011 Exam Questions updates for 1 year after purchase, as well as a free 8011 practice exam questions demo before purchase.

A free trial service is provided for all customers by 8011 study materials, whose purpose is to allow customers to understand our products in depth before purchase. Many students often complain that they cannot purchase counseling materials suitable for themselves. A lot of that stuff was thrown away as soon as it came back. However, you will definitely not encounter such a problem when you purchase 8011 Study Materials. All consumers who are interested in 8011 study materials can download our free trial database at any time by visiting our platform.

>> Latest 8011 Test Report <<

New Latest 8011 Test Report 100% Pass | High-quality Technical 8011 Training: Credit and Counterparty Manager (CCRM) Certificate Exam

The 8011 latest question from our company can help people get their 8011 certification in a short time. If you want to get the 8011 certification to improve your life, we can tell you there is no better alternative than our 8011 exam questions. The 8011 test torrent also offer a variety of learning modes for users to choose from, which can be used for multiple clients of computers and mobile phones to study online, as well as to print and print data for offline consolidation. Our product is affordable and good, if you choose our products, we can promise that our 8011 Exam Torrent will not let you down.

PRMIA 8011: Credit and Counterparty Manager (CCRM) Certificate Exam is an international certification program designed for professionals to gain knowledge and skills to effectively evaluate and manage risks involved in credit and counterparty activities. This certificate offers a comprehensive understanding of credit risk analysis and assessment, risk management strategies, and counterparty credit risk management practices. It is an advanced certification program intended for experienced professionals working in financial institutions, banks, insurance companies, rating agencies, and regulatory bodies.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q323-Q328):

NEW QUESTION # 323
Which of the following statements are true:
I. Stress tests should consider simultaneous pressures in funding and asset markets, and the impact of a reduction in liquidity II. Judging the effectiveness of risk mitigation techniques is not a part of stress testing III. A reverse stress test is useful for discovering hidden vulnerabilities and inconsistencies in hedging strategies IV. Reputational risk, which is explicitly excluded from the definition of operational risk under Basel II, should still be considered as part of stress tests.

A. I, III and IV
B. I and III
C. All of the above
D. II and IV

Answer: A

Explanation:
All the statements in this question are directly based on the principles for effective stress testing as laid down in the BCBS document on stress testing issued in May 2009. Statement 1 is correct and is an almost verbatim reproduction of principle 10 as laid down in that document. Statement II is incorrect as it is contrary to principle 11 laid down in the same document. Statement III is correct as discovering hidden vulnerabilities and inconsistencies in hedging strategies is one of the objectives of reverse stress tests. Similarly, even though reputational risk is not really covered under any risk category under Basel II (as it is not a part of either market, credit or operational risk), principle 14of this paper requires the mitigation of spill-over effects on market confidence of reputational risk when thinking about stress tests.
Thus statements I, III and IV are correct and statement II is incorrect.

NEW QUESTION # 324
Which of the following are valid objectives of a reverse stress test:
I. Ensure that a firm can survive for long enough after risks have materialized for it to either regainmarket confidence, restructure or be sold, or be closed down in an orderly manner, II. Discover the vulnerabilities of the current business plan, III. Better integrate business and capital planning, IV. Create a 'zero-failure' environment at the systemic level in the financial sector

A. I, II and III
B. I and IV
C. II and III
D. All of the above

Answer: A

Explanation:
Statement I is true. According to the statement CP08/24: Stress and scenario testing (December 2008) issued by the FSA in the UK, an underlying objective of reverse stress tests is to ensure that a firm can survive long enough after risks have crystallized for one of the following to occur:
- the market decides that its lack of confidence is unfounded and recommences transacting with the firm;
- the firm down-sizes and re-structures its business;
- the firm is taken over, or its business is transferred in an orderly manner; or
- public authorities take the firm over, or wind down its business in an orderly manner.
Statement II and III are true. The same statement clarifies the intention of the reverse stress testing requirement, which is to encourage firms to: explore more fully the vulnerabilities of theirbusiness model (including 'tail risks'); make decisions that better integrate business and capital planning; and improve their contingency planning.
Statement IV is incorrect. Since the question is asking for the statement which is NOT an objective for reverse stress tests, Choice 'b' is the correct answer. The same statement clarifies that the introduction of a reverse- stress test requirement should not be interpreted as indicating that the FSA is pursuing a 'zero-failure' policy.
In the FSA's view, such a policy is neither possible, nor desirable.

NEW QUESTION # 325
Which of the following credit risk models considers debt as including a put option on the firm's assets to assess credit risk?

A. The contingent claims approach
B. CreditPortfolio View
C. The actuarial approach
D. The CreditMetrics approach

Answer: A

Explanation:
The correct answer is Choice 'c'. The following is a brief description of the major approaches available to model credit risk, and the analysis that underlies them:
1. CreditMetrics: based on the credit migration framework. Considers the probability of migration to other credit ratings and the impact of such migrations on portfolio value.
2. CreditPortfolio View: similar to CreditMetrics, but adds the impact of the business cycle to the evaluation.
3. The contingent claims approach: uses option theory by considering a debt as a put option on the assets of the firm.
4. KMV's EDF (expected default frequency) based approach: relies on EDFs and distance to default as a measure of credit risk.
5. CreditRisk+: Also called the 'actuarial approach', considers default as a binary event that either happens or does not happen. This approach does not consider the loss of value from deterioration in credit quality (unless the deterioration implies default).

NEW QUESTION # 326
Under the CreditPortfolio View approach to credit risk modeling, which of the following bestdescribes the conditional transition matrix:

A. The conditional transition matrix is the transition matrix adjusted for the distribution of the firms' asset returns
B. The conditional transition matrix is the unconditional transition matrix adjusted for probabilities of defaults
C. The conditional transition matrix is the unconditional transition matrix adjusted for the state of the economy and other macro economic factors being modeled
D. The conditional transition matrix is the transition matrix adjusted for the risk horizon being different from that of the transition matrix

Answer: C

Explanation:
Under the CreditPortfolio View approach, the credit rating transition matrix is adjusted for the state of the economy in a way as to increase the probability of defaults when the economy is not doing well, and vice versa. Therefore Choice 'a' is the correct answer. The other choices represent nonsensical options.

NEW QUESTION # 327
What is the risk horizon period used for credit risk as generally used for economic capital calculations and as required by regulation?

A. 1 year
B. 1-day
C. 10 years
D. 10 days

Answer: A

Explanation:
The credit risk horizon for credit VaR is generally one year. Therefore Choice 'b' is the correct answer.

NEW QUESTION # 328
......

Perhaps you still feel confused about our Credit and Counterparty Manager (CCRM) Certificate Exam test questions when you browse our webpage. There must be many details about our products you would like to know. Do not hesitate and send us an email. Gradually, the report will be better as you spend more time on our 8011 exam questions. As you can see, our system is so powerful and intelligent. What most important it that all knowledge has been simplified by our experts to meet all people’s demands. So the understanding of the 8011 Test Guide is very easy for you. Our products know you better.

Technical 8011 Training: https://www.examcollectionpass.com/PRMIA/8011-practice-exam-dumps.html

Tags: Latest 8011 Test Report, Technical 8011 Training, 8011 New Study Plan, 8011 Valid Exam Braindumps, Exam 8011 Simulator Fee

Comments

There are still no comments posted ...

Rate and post your comment

Username:
Password:
Forgotten password?

Most Popular

Latest 8011 Test Report - Technical 8011 Training

New Latest 8011 Test Report 100% Pass | High-quality Technical 8011 Training: Credit and Counterparty Manager (CCRM) Certificate Exam

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q323-Q328):

Login