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Last Updated: Oct 06, 2026
No. of Questions: 242 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Management Framework | 10% | - Risk Appetite, Policies, Culture |
| Topic 2: Operational Risk Capital | 6% | - Capital Concepts & Basel III Context |
| Topic 3: Risk Governance | 6% | - Governance Principles and Risk Roles |
| Topic 4: Case Studies | 6% | - Applied Operational Risk Scenarios |
| Topic 5: Introduction | 2% | - Overview of Operational Risk Management |
| Topic 6: Risk Assessment | 10% | - Risk Identification and Assessment Techniques |
| Topic 7: Operational Resilience | 4% | - Resilience Concepts and Practices |
| Topic 8: Compliance Risk | 6% | - Compliance Risk Framework |
| Topic 9: Risk Information | 10% | - Loss Data, KRIs and Reporting |
A risk analyst peforming PCA wishes to explain80% of the variance. The first orthogonal factor has a volatility of 100, and the second 40, and the third 30. Assume there are no other factors. Which of the factors will be included in the final analysis?
Correct Answer: D 🗳️
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The sensitivity (delta) of a portfolio to a single point move in the value of the S&P500 is $100. If the current level of the S&P500 is 2000, and has a one day volatility of 1%, what is the value-at-risk for this portfolio at the 99% confidence and a horizon of 10 days? What is this method of calculating VaR called?
Correct Answer: D 🗳️
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Which of the following need to be assumed to convert a transition probability matrix for a given time period to the transition probability matrix for another length of time:
I. Time invariance
II. Markov property
III. Normal distribution
IV. Zero skewness
Correct Answer: D 🗳️
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As opposed to traditional accounting based measures, risk adjusted performance measures use which of the following approaches to measure performance:
Correct Answer: A 🗳️
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Which of the following is not a tool available to financial institutions for managing credit risk:
Correct Answer: C 🗳️
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