PRM Certification - Exam II: Mathematical Foundations of Risk Measurement
Last Update November 23, 2024
Total Questions : 132
Our PRM Certification 8002 exam questions and answers cover all the topics of the latest PRM Certification - Exam II: Mathematical Foundations of Risk Measurement exam, See the topics listed below. We also provide PRMIA 8002 exam dumps with accurate exam content to help you prepare for the exam quickly and easily. Additionally, we offer a range of PRMIA 8002 resources to help you understand the topics covered in the exam, such as PRM Certification video tutorials, 8002 study guides, and 8002 practice exams. With these resources, you can develop a better understanding of the topics covered in the exam and be better prepared for success.
| Exam Name | PRM Certification - Exam II: Mathematical Foundations of Risk Measurement |
| Exam Code | 8002 |
| Actual Exam Duration | The duration of the PRMIA 8002 Exam is 120 minutes. |
| Expected no. of Questions in Actual Exam | 90 |
| What exam is all about | PRMIA 8002 is a certification exam offered by the Professional Risk Managers' International Association (PRMIA) that focuses on the principles of market risk management. The exam covers topics such as market risk measurement, market risk modeling, and market risk management techniques. Passing this exam demonstrates a candidate's knowledge and understanding of market risk management principles and practices. |
| Passing Score required | The passing score required in the PRMIA 8002 exam is 60%. This means that a candidate must answer at least 60% of the questions correctly to pass the exam and earn the PRMIA certification. The exam consists of 30 multiple-choice questions, and candidates have 60 minutes to complete it. The questions cover topics such as risk management frameworks, risk identification, risk assessment, risk monitoring, and risk reporting. Candidates who pass the exam demonstrate their knowledge and understanding of risk management principles and practices, which can help them advance their careers in the financial industry. |
| Competency Level required | Based on my research, the PRMIA 8002 Exam is designed for professionals who have a basic understanding of financial markets and products, risk management concepts, and quantitative analysis. The exam is intended for individuals who are seeking to enhance their knowledge and skills in risk management and financial modeling. Therefore, a moderate to advanced level of competency is required to pass the PRMIA 8002 Exam. It is recommended that candidates have a minimum of two years of experience in the financial industry before taking the exam. |
| Questions Format | Based on the exam syllabus, the questions are likely to be multiple-choice, scenario-based, and require the application of quantitative and qualitative analysis skills. The exam may also include questions that test the candidate's understanding of risk management concepts, principles, and practices. |
| Delivery of Exam | PRMIA 8002 exam is an online proctored exam that can be taken from anywhere with a stable internet connection. The exam is delivered through the PRMIA Learning System, which is a secure online platform that allows candidates to take the exam at their convenience. The exam consists of 60 multiple-choice questions and has a time limit of 90 minutes. Candidates must score at least 70% to pass the exam and earn the PRMIA Operational Risk Manager (ORM) certification. |
| Language offered | Based on my research, the PRMIA 8002 exam is focused on financial risk management and may include technical language related to financial markets, risk assessment, and quantitative analysis. It is likely that the exam will require a strong understanding of financial terminology and concepts. |
| Cost of exam | You can visit the official PRMIA website or contact their customer support for the latest pricing details. |
| Target Audience | Based on the course description, it is likely targeted towards professionals in the financial industry who are interested in risk management and want to enhance their knowledge and skills in this area. This may include risk managers, financial analysts, traders, portfolio managers, and other professionals who work with financial risk. |
| Average Salary in Market | The PRMIA website, the PRMIA 8002 exam certification is designed for risk managers and financial professionals who want to enhance their knowledge and skills in risk management. Obtaining this certification can increase your chances of getting a higher salary or a promotion in your current job. The salary range may vary depending on your experience, job role, and location. It is recommended to research the current market trends and salary ranges for risk management professionals in your area. |
| Testing Provider | You can visit the official website of PRMIA (Professional Risk Managers' International Association) to find information about their certification exams and testing services. You can also contact PRMIA directly for any inquiries or assistance related to their exams. |
| Recommended Experience | PRMIA 8002 exam is designed for professionals who have a basic understanding of financial markets and products. It is recommended that candidates have at least two years of experience in the financial industry, including exposure to risk management concepts and practices. Additionally, candidates should have a good understanding of financial mathematics, statistics, and probability theory. It is also recommended that candidates have completed the PRMIA 8001 exam or have equivalent knowledge. |
| Prerequisite | The prerequisite for the PRMIA 8002 exam is to have completed the PRMIA Operational Risk Manager (ORM) certification or have equivalent knowledge and experience in operational risk management. Additionally, candidates should have a good understanding of financial markets, risk management principles, and regulatory requirements. It is recommended that candidates have at least two years of experience in operational risk management or a related field. |
| Retirement (If Applicable) | It is recommended to check with PRMIA or their official website for the latest updates on the retirement date of the exam. |
| Certification Track (RoadMap): | The PRMIA 8002 exam is part of the Professional Risk Manager (PRM) certification program offered by the Professional Risk Managers' International Association (PRMIA). The certification track/roadmap for the PRM program includes four levels of certification: 1. PRMIA Associate: This is the entry-level certification that requires passing the PRMIA 8001 exam. 2. PRMIA Professional: This level requires passing the PRMIA 8002 exam, which covers topics such as financial instruments, risk management frameworks, and quantitative analysis. 3. PRMIA Advanced: This level requires passing two exams: PRMIA 8003 (Operational Risk) and PRMIA 8004 (Credit and Counterparty Risk). 4. PRMIA Master: This is the highest level of certification and requires passing the PRMIA 8005 exam (Risk Management Best Practices) and completing a capstone project. The PRMIA certification program is designed to provide a comprehensive understanding of risk management principles and practices, and is recognized globally as a standard for risk management professionals. |
| Official Information | https://prmia.org/Public/PRM/PRM_Handbook_Digital%20Resources.aspx |
| Take Self-Assessment | Use PRMIA 8002 Practice Test to Assess your preparation - Save Time and Reduce Chances of Failure |
| Section | Weight | Objectives |
|---|---|---|
| Chapter 1 | Reviews the fundamental mathematical concepts: the symbols used and the basic rules of arithmetic, equations and inequalities, functions and graphs. |
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| Chapter 2 | Introduces the descriptive statistics that are commonly used to summarize the historical characte ristics of financial data: the sample moments of returns distributions, ‘downside’ risk statistics, and measures of covariation (e.g. correlation) between two random variables. | |
| Chapter 3 | Focuses on differentiation and integration, Taylor expansion and optimization. Financial applications include calculating the convexity of a bond portfolio and the estimation of the delta and gamma of an options portfolio. | |
| Chapter 4 | Covers matrix operations, special types of matrices and the laws of matrix algebra, the Cholesky decomposition of a matrix, and eigenvalues and igenvectors. Examples of financial applications include manipulating covariance matrices, calculating the variance of the returns to a portfolio of assets, hedging a vanilla option position, and simulating correlated sets of returns. | |
| Chapter 5 | First introduces the concept of probability and the rules that govern it. Then some common probability distributions for discrete and continuous random ariables are described, along with their expectation and variance and various concepts relating to joint distributions, such as covariance and correlation, and the expected value and variance of a linear combination of random variables. | |
| Chapter 6 | Covers the simple and multiple regression models, with applications to the capital asset pricing model and arbitrage pricing theory. The statistical inference section deals with both prediction and hypothesis testing, for instance, of the efficient market hypothesis. | |
| Chapter 7 | Looks at solving implicit equations (e.g. the Black-Scholes formula for implied volatility), lattice methods, finite differences and simulation. Financial applications include option valuation and estimating the ‘Greeks’ for complex options. |
TESTED 23 Nov 2024
