2025 Realistic PRMIA 8020 Latest Exam Test Free PDF Quiz
P.S. Free 2025 PRMIA 8020 dumps are available on Google Drive shared by ITdumpsfree: https://drive.google.com/open?id=1s9yOgpqXU4EcWd22yv0S4VaKYZYqqePM
The PRMIA 8020 certification exam is one of the hottest certifications in the market. This PRMIA 8020 exam offers a great opportunity to learn new in-demand skills and upgrade your knowledge level. By doing this successful 8020 ORM Certificate - 2023 Update exam candidates can gain several personal and professional benefits.
The development and progress of human civilization cannot be separated from the power of knowledge. You must learn practical knowledge to better adapt to the needs of social development. Now, our 8020 learning prep can meet your requirements. You will have good command knowledge with the help of our study materials. The certificate is of great value in the job market. Our 8020 learning prep can exactly match your requirements and help you pass exams and obtain certificates. As you can see, our products are very popular in the market. Time and tides wait for no people. Take your satisfied 8020 Actual Test guide and start your new learning journey. After learning our learning materials, you will benefit a lot. Being brave to try new things, you will gain meaningful knowledge.
8020 Exam Cram - 8020 Valid Exam Tutorial
With the rapid development of the world economy and frequent contacts between different countries, looking for a good job has become more and more difficult for all the people. So it is very necessary for you to get the 8020 certification, in order to look for a good job, you have to increase your competitive advantage in the labor market and make yourself distinguished from other job-seekers. And our 8020 Exam Questions are specially desiged for you as we can help you pass the 8020 exam successfully with the least time and effort. Just come and buy our 8020 practice guide!
PRMIA 8020 Exam Syllabus Topics:
Topic
Details
Topic 1
Topic 2
Topic 3
Topic 4
Topic 5
PRMIA ORM Certificate - 2023 Update Sample Questions (Q49-Q54):
NEW QUESTION # 49
In operational resilience, what is impact tolerance?
Answer: A
Explanation:
Impact Tolerance is a key concept in Operational Resilience, defined as the ability of a firm to withstand, respond to, and recover from disruptions. According to PRMIA and global regulatory frameworks (such as the Bank of England's Operational Resilience Framework), impact tolerance is specifically tied to business services rather than processes.
Step 1: Defining Impact Tolerance
Impact tolerance is the maximum acceptable level of disruption to an important business service, beyond which there would be intolerable harm to customers, financial markets, or regulatory obligations.
It is not the same as risk appetite or risk capacity, as those deal with broader organizational risk exposure.
Step 2: Why Business Services Matter
PRMIA defines business services as end-to-end services delivered to clients and stakeholders, such as payments processing, trade execution, or loan approvals.
Disruptions to these services directly impact customers and financial stability, making business service resilience the core focus of impact tolerance.
Step 3: Why the Other Options Are Incorrect
Option A ("tolerance for disruption to a particular business process")
Incorrect because impact tolerance applies to services, not just internal processes.
Option C ("a firm's risk appetite statement")
Incorrect because risk appetite focuses on how much risk a firm is willing to take, while impact tolerance is about surviving disruptions.
Option D ("a firm's risk capacity statement")
Incorrect because risk capacity is the maximum level of risk a firm can bear, which is broader than business service disruptions.
PRMIA Risk Reference Used:
PRMIA Operational Resilience Guidelines - Defines impact tolerance as a service-based metric.
Bank of England's Operational Resilience Framework - Establishes impact tolerance as a limit on business service disruption.
Final Conclusion:
Impact tolerance focuses on business services, not just internal processes or risk appetite, making Option B the correct answer.
NEW QUESTION # 50
In relation to financial crime. OFAC is a definition for which organization?
Answer: D
Explanation:
Step 1: Understanding OFAC
OFAC (Office of Foreign Assets Control) is a U.S. Treasury Department agency responsible for enforcing economic and trade sanctions based on U.S. foreign policy and national security goals.
It prevents financial crime by restricting transactions with sanctioned individuals, entities, and countries.
Step 2: Role of OFAC in Financial Crime Prevention
OFAC administers sanctions to prevent money laundering, terrorism financing, and other illicit activities.
Financial institutions must comply with OFAC regulations to avoid heavy fines and reputational damage.
PRMIA's Financial Crime Risk Guidelines emphasize the importance of OFAC compliance in risk management.
Step 3: Why the Other Options Are Incorrect
Option A ("Office of Financial Asset Control") - Incorrect wording; OFAC deals with foreign assets, not just financial assets.
Option B ("Office of Foreigner and Other Control") - OFAC does not regulate foreigners broadly; it targets specific foreign assets and transactions.
Option C ("Office for Asset Control") - Missing "Foreign", which is critical to OFAC's function.
PRMIA Risk Reference Used:
PRMIA Financial Crime Risk Management Guidelines - Emphasizes regulatory compliance with OFAC.
PRMIA Compliance and Sanctions Risk Standards - Stresses the role of OFAC in preventing illicit financial activities.
Final Conclusion:
OFAC stands for the Office of Foreign Assets Control, making Option D the correct answer.
NEW QUESTION # 51
Which of the follow does the risk function typically have responsibility for?
Answer: A
Explanation:
Role of the Risk Function
The risk function is responsible for documenting, monitoring, and overseeing risk policies and frameworks.
It ensures the organization maintains structured risk governance, reporting, and compliance.
Key Responsibilities
Developing Risk Management Manuals to define risk appetite, risk frameworks, and risk governance structures.
Creating Risk Policies that align with regulatory standards and internal controls.
Why Answer B is Correct
The risk function primarily develops, implements, and maintains risk management frameworks, which include formal manuals and policies.
Why Other Answers Are Incorrect
Option
Explanation:
A . Documenting its activities, typically by operating and then recording the daily operation of controls.
Incorrect - The first line of defense (business units) handles daily operational controls, not the risk function.
C . Putting in place the servers, firewalls, and software to ensure cybersecurity.
Incorrect - Cybersecurity is an IT responsibility, while the risk function oversees cyber risk frameworks.
D . Creating a trial balance, balance sheet statement, and cash flow statement.
Incorrect - These are financial accounting responsibilities, not risk management duties.
PRMIA Reference for Verification
PRMIA Governance Framework for Risk Management
Basel Risk Management Principles
NEW QUESTION # 52
Confidence Accounting can be defined as:
Answer: B
Explanation:
Definition of Confidence Accounting
Confidence Accounting challenges traditional accounting by introducing probability distributions and ranges rather than fixed numbers for financial reporting.
This approach improves transparency and risk awareness by acknowledging uncertainty in financial figures.
Why Answer B is Correct
Encourages using ranges (confidence intervals) instead of discrete values to better reflect uncertainty.
Used in risk-sensitive industries where financial estimates vary due to external factors (e.g., credit risk, market fluctuations).
Why Other Answers Are Incorrect
Option
Explanation:
A . An approach that encourages companies and audit firms to have diverse boards.
Incorrect - Board diversity is unrelated to Confidence Accounting.
C . An approach that encourages companies and audit firms to use regular statements in their AI software.
Incorrect - AI may use probability models, but Confidence Accounting is an accounting methodology, not an AI approach.
D . An approach that encourages companies and audit firms to stop using figures and maths.
Incorrect - Confidence Accounting still relies on mathematical models; it does not eliminate numerical analysis.
PRMIA Reference for Verification
PRMIA Financial Risk Reporting Standards
IFRS (International Financial Reporting Standards) Guidelines on Probability-Based Accounting
NEW QUESTION # 53
In the Basel III standardized approach for operational risk, what is the Business Indicator?
Answer: D
Explanation:
Step 1: Definition of the Business Indicator (BI) in Basel III
The Business Indicator (BI) is a financial-statement-based metric used in Basel III's Standardized Approach for Operational Risk.
It replaces previous approaches by using financial figures (e.g., revenue, fees, interest income) to estimate operational risk exposure.
Step 2: Why Option D Is Correct
The BI uses financial-statement data to calculate operational risk capital requirements.
It acts as a proxy for a bank's operational risk exposure by linking operational risk to its financial size and complexity.
Step 3: Why the Other Options Are Incorrect
Option A ("Proxy for near-miss events") → Incorrect because BI is based on financial data, not near-miss risk events.
Option B ("Non-financial-statement-based proxy") → Incorrect because BI is explicitly derived from financial statements.
Option C ("Scaling factor based on historical losses") → Incorrect because BI does not use historical losses directly-it relies on financial-statement inputs.
PRMIA Risk Reference Used:
Basel III Operational Risk Framework - Defines the Business Indicator as a financial-statement-based metric.
PRMIA Operational Risk Guidelines - Explains the BI's role in capital calculations.
NEW QUESTION # 54
......
Compared with our PDF version of 8020 training guide, you will forget the so-called good, although all kinds of digital device convenient now we read online to study for the 8020 exam, but many of us are used by written way to deepen their memory patterns. Our PDF version of 8020 prep guide can be very good to meet user demand in this respect, allow the user to read and write in a good environment continuously consolidate what they learned. And the PDF version of 8020 learning guide can be taken to anywhere you like, you can practice it at any time as well.
8020 Exam Cram: https://www.itdumpsfree.com/8020-exam-passed.html
2025 Latest ITdumpsfree 8020 PDF Dumps and 8020 Exam Engine Free Share: https://drive.google.com/open?id=1s9yOgpqXU4EcWd22yv0S4VaKYZYqqePM