Latest [Aug 29, 2025] Realistic Verified 8020 Dumps [Q20-Q44]

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Latest [Aug 29, 2025] Realistic Verified 8020 Dumps

Pass PRMIA 8020 Exam Updated 62 Questions

NEW QUESTION 20
For the National Australia Bank – FX Options case study, which was the major cause of the loss event?

Currency traders were allowed access to the risk system by the CEO.

Currency traders concealed losses using back office knowledge.

Currency traders smoothed profits and concealed losses.

Currency traders were able to complete a Management Buy Out (MBO).

NEW QUESTION 21
Under the previous Basel II approach, which was not an approach for operational risk?

Basic Indicator Approach (BIA).

The Standardized Approach (TSA).

Advanced Measurement Approach (AMA).

Alternative Measurement Approach (AMA).

NEW QUESTION 22
ISO 27000 relates to what topic / area?

Environmental, social, and governance (ESG) investing.

Information Security Systems.

International Risk Management.

Auditing of financial controls.

NEW QUESTION 23
The The Task Force on Climate-related Financial Disclosures (TCFD) was founded by which body?

The Financial Stability Board (FSB).

The European Commission (EC).

The United Nations (UN).

The World Bank (WB).

NEW QUESTION 24
In relation to the template for writing policy documents, which one of the following pairings of requirements is correct? A well designed policy will include:

A list of exceptions for the family of board members.

A list of acceptable fonts and margin types.

To whom and in what form exceptions should be sought and the general exemptions e.g. areas to which the policy does not apply

To whom the policy applies to and how an additional management report should be allocated to.

NEW QUESTION 25
In order for a KRI to be effective it must be:

Quantitative and Qualitative. Consistent. Efficient & Repeatable.

Qualitative, Consistent Efficient & Repeatable.

Quantitative, Consistent and Comparable. Efficient & Repeatable

Quantitative, Repeatable and Efficient.

NEW QUESTION 26
Which of the following statements is best for inclusion in the values to be set for a Risk Function?

We prize the ability to implement the management team’s direction on the control of risks.

We prize the ability to implement the board’s direction on the implementation of controls for risks.

We prize the ability to ensure that the Risk Function’s opinions are listened to and acted upon.

We prize the ability to lower risk-taking to an absolute minimum – zero if possible.

NEW QUESTION 27
For the FTX case study, what was the “backdoor” used for?

It allowed a stable coin to be removed from the ledger and added to the balance sheet.

It allowed trading firm Alameda to borrow S65 billion of clients’ money from the exchange without their permission.

It allowed currency traders to smooth profits and conceal losses for over two years.

It allowed a rapid pace of acquisitions but poor integration of acquired companies.

NEW QUESTION 28
For the Barings case study, what external event may have accelerated the discovery of the loss event?

The collapse of Lehman Brothers into bankruptcy in 2002.

The Singapore earthquake of January 17th 1995.

The collapse of Lehman Brothers into bankruptcy m 2008.

The Kobe earthquake of January 17th 1995.

NEW QUESTION 29
In operational resilience, what is impact tolerance?

Impact tolerance is a firm’s tolerance for disruption to a particular business process.

Impact tolerance is a firm’s tolerance for disruption to a particular business service.

Impact tolerance is a firm’s risk appetite statement.

Impact tolerance is a firm’s risk capacity statement.

NEW QUESTION 30
Which of the following is not an action available to management and the governing body to align the strategy with Risk Capacity.

Reduce scale of risks – shrink balance sheet or activity levels.

Improve quality of risks – pursue lower rewarding risks with better prospects.

Reduce retained earning – by increasing dividends in order to return funds to investors and improve reputation.

Improve retained earnings – by increasing net income or reducing dividends in order to increase risk capacity.

NEW QUESTION 31
Which of the following principles is critical when creating the optimum policy range and content’?

Policies should be divided into a large number of short topics to enhance accessibility.

Policy owners must ensure that policies are read by the regulator and then the shareholders.

Hard copies of a new policy should be placed in a central library of governance documents at the CRO’s home.

New policies should be accompanied by Citable training for the target audience and added to the content of new employee training.

NEW QUESTION 32
Which of the following is not the purpose or benefit of a Risk Appetite statement?

Risk management standards and resources are likely to be improved.

The governing body articulates its expectations.

Establishes the maximum risk that the organization can stand.

Assists with Strategic discussions.

NEW QUESTION 33
What are the objectives of conducting an internal loss investigation?

Increase understanding of root causes, focus attention on remediation, and improve the quality of scenario analysis and risk assessments.

Increase understanding of root causes, focus attention on who caused the issue, and improve the quality of scenario analysis and risk assessments.

Increase understanding of root causes, focus attention on remediation, and ascertain responsibility for the loss event.

This is determined on a case by case basis by the HR team.

NEW QUESTION 34
How should Near Misses and Opportunity Costs be treated within Operational Risk?

Ignored.

Recorded and Analyzed. Used in calculation of Operational Risk Capital.

Reported. Recorded and Analyzed. Not Used in calculation of Operational Risk Capital.

Reported, Recorded and Analyzed, Used in calculation of Operational Risk Capital.

NEW QUESTION 35
Which of the Basel Accords, published in 2004, introduced operational risk as a risk subjected to a capital charge?

Basel I

Basel II

Basel III

Basel IV

NEW QUESTION 36
In relation to financial crime. OFAC is a definition for which organization?

Office of Financial Asset Control.

Office of Foreigner and other Control.

Office for Asset Control.

Office of Foreign Asset Control.

NEW QUESTION 37
For the WorldCom case, what was one of the causes of the failure?

Risk models that did not reflect loosened underwriting standards of mortgage originators.

The lack of a CRO during the final IPO.

A rapid pace of acquisitions and poor integration of acquired companies.

Unauthorized trading in derivatives.

NEW QUESTION 38
Risk Capacity for a bank is defined as the:

Amount of risk the bank wishes to take.

Amount of risk the regulator sets for the bank.

Ability to withstand an extreme event and make a profit.

Ability to suffer an extreme event with an orderly wind up with only shareholders losing money.

NEW QUESTION 39
Which of the below is accurate about a risk assessment workshop?

The workshop should be run spontaneously so that proper discussion can take place.

Although workshops will take on their own form; it is best to prepare thoroughly ahead of time.

Risk management should not attend the workshop so that proper discussion can take place.

Compliance experts should not attend the workshop so that proper discussion can take place.

NEW QUESTION 40
Ideally, which of the following should be completed as part of the risk assessments of service providers?

An assessment of a third party should include its compliance and risk infrastructure, financials, business strategy and operating history.

An assessment of a third party should not include its compliance and risk infrastructure, financials, business strategy and operating history.

Onsite visits are not advantageous for understanding the third party’s risks and control environment.

A review of the pay levels of the staff supporting the service.

NEW QUESTION 41
Which of the following best describes the role of the compliance department?

The compliance department is responsible for implementing the first line’s compliance risk management controls.

The compliance department is responsible for providing oversight over the auditor’s implementation of compliance risk management controls.

The compliance department is responsible for providing oversight over the board’s implementation of compliance risk management controls.

The compliance department is responsible for providing oversight over the first line’s implementation of compliance risk management controls.

NEW QUESTION 42
Managing financial crime is a part of risk and compliance for many firms. Which of the following is a useful control to help reduce this risk?

Having the business be a cash only business and not report any transactions.

The requirements to trace all transactions when they are entered into spreadsheets.

Development of scenarios and red flags that are used to monitor transactions and identify suspicious customers and activities.

Local regulations that allow a bank to not report transactions by family members of the board.

NEW QUESTION 43
For which of the following reasons did the Turnbull Report have a significant impact on risk governance?

It defined the concept of risk governance for the insurance industry.

It was the first report to list the board as a proposed governance structure.

It was the first report to require a board to take specific account of risks and control systems for risks.

It was a report that led to the establishment of the US Federal Reserve.

NEW QUESTION 44
Which of the following principles best applies to a compliance function?

The compliance function should report to the business (even when following a three lines of defense model).

The compliance function should be independent of the business (following a three lines of defense model).

The compliance function should be outsourced if there is a risk function.

The risk function should be outsourced if there is a compliance function.

PRMIA 8020 Exam Syllabus Topics:

Topic	Details
Topic 1	Case Studies: This section of the exam measures the skills of Business Risk Consultants and covers real-world applications of risk management concepts. It examines case studies on risk governance, assessment, and mitigation strategies across different industries. A key skill measured is analyzing historical risk events for strategic insights.
Topic 2	Risk Management Framework: This section of the exam measures the skills of Risk Managers and covers the development and implementation of structured approaches for risk identification, evaluation, and mitigation. It includes industry-standard frameworks that guide risk strategy and decision-making. A key skill measured is establishing a risk management framework for organizations.
Topic 3	Risk Assessment: This section of the exam measures the skills of Financial Risk Analysts and covers methodologies for evaluating risks in different domains, including qualitative and quantitative approaches. It focuses on assessing vulnerabilities, threats, and potential impacts on business operations. A key skill measured is conducting risk impact analysis for financial threats.
Topic 4	Introduction: This section of the exam measures the skills of Risk Analysts and covers fundamental concepts of risk governance, management, and assessment. It introduces key principles, regulatory frameworks, and industry best practices for identifying and addressing risks. A key skill measured is understanding the foundational principles of risk management.
Topic 5	Risk Modeling: This section of the exam measures the skills of Quantitative Risk Analysts and covers mathematical and statistical techniques used to predict risk scenarios. It explores model development, validation, and application in financial and operational risk management. A key skill measured is applying statistical models for risk prediction.
Topic 6	Insurance Mitigation: This section of the exam measures the skills of Insurance Risk Managers and covers strategies for transferring risk through insurance and other financial instruments. It focuses on risk transfer mechanisms, policy structuring, and claims management. A key skill measured is assessing risk transfer options through insurance.

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Latest [Aug 29, 2025] Realistic Verified 8020 Dumps [Q20-Q44]

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