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PRMIA 8008 exam is a part of the PRM (Professional Risk Manager) certification, which is globally recognized as the leading qualification for risk management professionals. The 8008 exam covers a wide range of topics related to risk management frameworks, operational risk, credit risk, counterparty risk, market risk, asset and liability management (ALM), and funds transfer pricing (FTP). 8008 exam is designed to test the candidate's ability to apply theoretical concepts to practical scenarios and make informed decisions based on risk management principles.
PRMIA 8008 Exam is a certification exam designed explicitly for finance and risk management professionals who want to enhance their skills and knowledge in risk management frameworks, operational risk, credit risk, counterparty risk, market risk, ALM, and FTP. The PRMIA (Professional Risk Managers’ International Association) is a non-profit professional association that provides an open platform for professionals to enhance their knowledge and understanding of the risk management discipline. 8008 exam provides an extensive range of knowledge that prepares professionals to tackle the contemporary demands in the niche of risk management.
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FTP is the mechanism by which a financial institution allocates its funding costs to its different business units. This section of the exam covers the different types of FTP mechanisms such as marginal cost of funds, average cost of funds, and transfer pricing. Candidates will also be tested on their understanding of FTP techniques such as transfer pricing models, FTP policies, and FTP implementation.
PRMIA 8008 Exam Syllabus Topics:
| Section | Objectives |
| Counterparty Risk | - Derivatives credit risk considerations
- Counterparty credit exposure
- Netting and collateral management
|
| Credit Risk | - Credit portfolio risk
- Credit risk measurement and modeling
- 1. Exposure at default (EAD)
- 2. Loss given default (LGD)
- 3. Probability of default (PD)
|
| Market Risk | - Market risk measurement techniques
- 1. Stress testing and scenario analysis
- 2. Value at Risk (VaR)
- Interest rate, equity, FX, and commodity risk
|
| Asset-Liability Management (ALM) | - Liquidity risk management
- Interest rate risk in the banking book (IRRBB)
|
| Funds Transfer Pricing (FTP) | - FTP methodologies
- Internal pricing of funds and liquidity allocation
|
| Operational Risk | - Operational risk management techniques
- 1. Key risk indicators (KRI)
- 2. Loss event data collection
- 3. Risk and control self-assessment (RCSA)
- Operational risk types and sources
|
| Risk Management Frameworks | - Enterprise risk management principles
- 1. Risk identification and assessment processes
- 2. Risk governance structure
- 3. Risk appetite and tolerance
- Risk measurement and reporting frameworks
|