8011 Reliable Study Questions - 8011 Top Exam Dumps

Improvement in 8011 science and technology creates unassailable power in the future construction and progress of society. As we can see, the rapid progression of the whole world is pushing people forward and the competitiveness among people who are fighting on the first line is growing intensely. 8011 practice test can be your optimum selection and useful tool to deal with the urgent challenge. With over a decade’s striving, our 8011 Training Materials have become the most widely-lauded and much-anticipated products in industry. We will look to build up R&D capacity by modernizing innovation mechanisms and fostering a strong pool of professionals. Therefore, rest assured of full technical support from our professional elites in planning and designing 8011 practice test.

PRMIA 8011 Credit and Counterparty Manager (CCRM) Certificate is a comprehensive certification program that provides professionals with the skills and knowledge necessary to manage credit and counterparty risk in financial institutions. The CCRM exam covers a range of topics related to credit and counterparty risk management, and passing the exam demonstrates a candidate's knowledge and expertise in these areas. Credit and Counterparty Manager (CCRM) Certificate Exam certification is highly regarded in the financial industry and provides professionals with a competitive edge in the job market.

>> 8011 Reliable Study Questions <<

8011 Top Exam Dumps | Pdf 8011 Braindumps

If your answer is yes then you need to start Channel Partner Program 8011 test preparation with PRMIA 8011 PDF Questions and practice tests. With the TestKingIT Channel Partner Program Credit and Counterparty Manager (CCRM) Certificate Exam 8011 Practice Test questions you can prepare yourself shortly for the final Credit and Counterparty Manager (CCRM) Certificate Exam 8011 exam.

PRMIA 8011 Exam covers a range of topics related to credit and counterparty risk management, including credit risk measurement and management, counterparty risk management, credit derivatives, securitization, and credit portfolio management. 8011 exam is designed to test the candidate's understanding of the key concepts, principles, and practices of credit and counterparty risk management. The CCRM certificate is recognized globally and is highly valued by employers in the financial services industry. It is an excellent way for professionals to demonstrate their expertise and commitment to the field of credit and counterparty risk management.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q286-Q291):

NEW QUESTION # 286
When modeling severity of operational risk losses using extreme value theory (EVT), practitioners often use which of the following distributions to model loss severity:
I. The 'Peaks-over-threshold' (POT) model
II. Generalized Pareto distributions
III. Lognormal mixtures
IV. Generalized hyperbolic distributions

A. I, II, III and IV
B. II and III
C. I, II and III
D. I and II

Answer: D

Explanation:
The peaks-over-threshold model is used when losses over a given threshold are recorded, as is often the case when using data based on external public sources where only large loss events tend to find a place. The generalized Pareto distribution is also used when attempting to model loss severity using EVT. Lognormal mixtures and generalized hyperbolic distributions are not used as extreme value distributions.
Choice 'd' is the correct answer.

NEW QUESTION # 287
An assumption regarding the absence of ratings momentum is referred to as:

A. Time invariance
B. Ratings stability
C. Markov property
D. Herstatt risk

Answer: C

Explanation:
Choice 'c' is the correct answer. The Markov property is the assumption that there is no ratings momentum, and that transition probabilities are dependent only upon where the rating currently is and where it is going to.
Where it has come from, or what the past changes in ratings have been, have no effect on the transition probabilities. ('Herstatt risk' refers to settlement risk, and is irrelevant.)

NEW QUESTION # 288
What is the combined VaR of two securities that are perfectly positively correlated.

A. The root of the sum of squares of the individual VaRs of the two securities.
B. Combined VaR cannot be derived using the available information.
C. The sum of the individual VaRs of the two securities.
D. The difference of the two VaRs.

Answer: C

Explanation:
Choice 'b' is the correct answer. When two securities have a correlation of +1, they are effectively the same security. In such cases, the standard deviations of the two securities are additive, which means the VaRs can simply be added together to get the combined VaR. All the other choices are incorrect.
Choice 'c' in particular would have been correct if the securities were completely uncorrelated, ie if they had a correlation of zero.
Choice 'a' would have been correct if their correlation were -1.

NEW QUESTION # 289
Which of the following was not a policy response introduced by Basel 2.5 in response to the globalfinancial crisis:

A. Comprehensive Capital Analysis and Review (CCAR)
B. Comprehensive Risk Model (CRM)
C. Incremental Risk Charge (IRC)
D. Stressed VaR (SVaR)

Answer: A

Explanation:
The CCAR is a supervisory mechanism adopted by the US Federal Reserve Bank to assess capital adequacy for bank holding companies it supervises. It was not a concept introduced by the international Basel framework.
The other three were indeed rules introduced by Basel 2.5, which was ultimately subsumed into Basel III.
Stressed VaR is just the standard 99%/10 day VaR, calculated with the assumption that relevant market factors are under stress.
The Incremental Risk Charge (IRC) is an estimate of default and migration risk of unsecuritized credit products in the trading book. (Though this may sound like a credit risk term, it relates to market risk - for example, a bond rated A being downgraded to BBB. In the old days, the banking book where loans to customers are held was the primary source of credit risk, but with OTC trading and complex products the trading book also now holds a good deal of credit risk. Both IRC and CRM account for these.) While IRC considers only non-securitized products, the CRM (Comprehensive Risk Model) considers securitized products such as tranches, CDOs, and correlation based instruments.
The IRC, SVaR and CRM complement standard VaR by covering risks that are not included in a standard VaR model. Their results are therefore added to the VaR for capital adequacy determination.

NEW QUESTION # 290
Which of the following is true for the actuarial approach to credit risk modeling (CreditRisk+):

A. The number of defaults is modeled using a binomial distribution where the number of defaults are considered discrete events
B. The approach considers only default risk, and ignores the risk to portfolio value from credit downgrades
C. Default correlations between obligors are accounted for using a multivariate normal model
D. The approach is based upon historical rating transition matrices

Answer: B

Explanation:
The actuarial model considers defaults to follow a Poisson distribution with a given mean per period, and these are binary in nature, ie a default happens or it does not happen. The model does not consider the loss of value from credit downgrades, and focuses only on defaults. The model also does not consider default correlations between obligors. Therefore Choice 'c' is the correct answer.
The other choices are not true statements that would apply to the actuarial approach.

NEW QUESTION # 291
......

8011 Top Exam Dumps: https://www.testkingit.com/PRMIA/latest-8011-exam-dumps.html

Nick Smith Nick Smith

Biography

8011 Reliable Study Questions - 8011 Top Exam Dumps

8011 Top Exam Dumps | Pdf 8011 Braindumps

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q286-Q291):

Quick Links

Links

Contacts

Nick Smith Nick Smith

Biography

8011 Reliable Study Questions - 8011 Top Exam Dumps

8011 Top Exam Dumps | Pdf 8011 Braindumps

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q286-Q291):

Quick Links

Links

Contacts

Sign in

Sign up