PRMIA APRM Certification Exam Sample Questions

APRM Dumps PDF, Associate Professional Risk Manager Dumps, download Associate PRM free Dumps, PRMIA Associate Professional Risk Manager exam questions, free online Associate PRM exam questionsYou have to pass the APRM exam to receive the certification from PRMIA. To increase the effectiveness of your study and make you familiar with the actual exam pattern, we have prepared this PRMIA Associate Professional Risk Manager sample questions. Our Sample PRMIA Associate Professional Risk Manager Practice Exam will give you more insight about both the type and the difficulty level of the questions on the PRMIA Associate PRM exam.

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PRMIA Associate Professional Risk Manager Sample Questions:

01. A bank first measures the economic capital each business line would need on a standalone basis, then attributes capital to those same lines within the diversified group.
Why does the attributed capital total less than the sum of the standalone figures?
a) Standalone figures are stated gross of provisions, and removing them lowers the attributed total
b) Losses in the different lines are not perfectly correlated, so the group's combined risk is smaller
c) Attributed capital covers only expected loss, while standalone capital covers unexpected loss as well
d) Supervisors allow a discount on internal capital estimates once a group passes a size threshold
 
02. A business line reports a healthy accounting profit for the year, yet its economic profit for the same period is negative.
Which explanation is MOST consistent with that outcome?
a) Economic profit leaves out operating costs, so the two figures measure unrelated quantities
b) The accounting result had already been reduced by a charge for the capital the business consumed
c) The return earned did not cover a charge for the risk capital the business consumed
d) The business recognized its expected credit losses twice, once in provisions and again in capital
 
03. A case study covers a bank that maintained accounts for politically exposed foreign officials without examining the source of the funds or the pattern of transfers running through those accounts.
Which obligation did the bank MOST clearly fail to meet?
a) Applying money-laundering and know-your-customer diligence proportionate to client risk

b) Holding capital against the market risk arising within those accounts

c) Separating the staff who executed transfers from the staff who reconciled them
d) Reporting every incoming transfer above its internal threshold to the board risk committee
 
04. A firm ranks its business lines by RAROC and proposes to withdraw capital from the lines at the bottom of the table. The head of risk cautions that the ranking should not be read mechanically.
Which limitation of RAROC MOST directly supports that caution?
a) It cannot be formed for a business line whose economic capital exceeds its regulatory capital
b) It rests on a modeled and attributed capital figure, and a defensible change of method reorders the table
c) It rises whenever a business grows, so larger activities score better than smaller ones
d) It leaves the return a business earns out of the calculation, ranking activities only by capital consumed
 
05. A lender funds itself largely with uninsured corporate deposits that can be withdrawn at short notice, and has invested those funds in long dated fixed rate securities it intends to hold to maturity. Market rates rise sharply and depositors begin moving money elsewhere.
Which syllabus case study lesson does this situation MOST directly illustrate?
a) Relative value positions that looked diversified until correlations converged in a flight to quality
b) A single individual controlling both dealing and settlement, with losses hidden in an error account
c) A maturity mismatch in the securities book alongside a concentrated, uninsured funding base
d) Customer assets commingled with the firm's own money in the absence of an effective governing board
 
06. PRMIA's Standards require transparency and full disclosure of material risk information.
Which practice BEST reflects that principle in a firm's routine risk reporting?
a) Disclose adverse findings on the same footing and to the same timetable as favorable ones
b) Hold adverse findings back until a decision maker asks a direct question about them
c) Raise adverse findings only where they would change the decision being proposed
d) Place adverse findings in a technical annex that the reporting pack does not reference
 
07. PRMIA's Standards place an obligation on a risk professional who becomes aware of a material risk issue.
What does the duty to escalate require?
a) Record the matter in the risk log and treat that entry as discharging the obligation
b) Raise the matter through governance channels until it reaches a level able to act on it
c) Raise the matter only when the professional can also propose a complete remedy for it
d) Raise the matter once the reporting period has closed so that current results are undisturbed
 
08. PRMIA's Standards of Best Practice, Conduct and Ethics address information that a client provides to a risk professional in the course of a professional relationship.
Which obligation do the Standards place on the professional in respect of that information?
a) Disclose client information to any counterparty that asserts a commercial interest in it
b) Use client information only for the purpose for which the client provided it
c) Circulate client information across the industry so that peer benchmarking stays accurate
d) Treat client information as public once the engagement that produced it has concluded
 
09. PRMIA's Standards include an obligation to uphold the reputation of the risk management profession.
What conduct does that obligation reach?
a) Conduct that breaches an internal policy, with no bearing on activity beyond the employer
b) Conduct occurring during working hours, since private activity falls outside the obligation
c) Conduct that a supervisor has already sanctioned through a formal enforcement process
d) Conduct that would bring the profession into disrepute, whether inside or outside the firm
 
10. PRMIA's Governance Principles describe the position a risk function should hold within a firm.
What does the principle of independence and objectivity require of that function?
a) Escalate every risk view to the relevant business head for approval before it is circulated
b) Form and report risk views without influence from the business lines being assessed
c) Defer to the finance function whenever a measurement result is disputed internally
d) Confine the risk function to data collection and leave interpretation to the front office

Answers:

Question: 01
Answer: b		 Question: 02
Answer: c		 Question: 03
Answer: a		 Question: 04
Answer: b		 Question: 05
Answer: c
Question: 06
Answer: a		 Question: 07
Answer: c		 Question: 08
Answer: b		 Question: 09
Answer: d		 Question: 10
Answer: b

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