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Exam Code: 8010
Exam Name: Operational Risk Manager (ORM) Exam
Vendor: PRMIA

60 Questions & Answers
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NEW QUESTION: 1
During the course introduction, a student expresses that an objective they expected to be covered in the course is not listed. Which of the following actions should the trainer perform?
A. Direct the student to additional resources on the objective
B. Remove the student's evaluation of the course
C. Comment that the objective topic is not required
D. Inform the student that they may not want to finish the course
Answer: A
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 2
HOTSPOT
Click in the screen shown to select the feature that will allow you make bulk changes to your ads:

Answer:
Explanation:


NEW QUESTION: 3
Dough Distributors has decided to increase its daily muffin purchases by 100 boxes. A box of muffins
costs $2 and sells for $3 through regular stores. Any boxes not sold through regular stores are sold
through Dough's thrift store for $1. Dough assigns the following probabilities to selling additional boxes:

What is the expected value of Dough's decision to buy 100 additional boxes of muffins?
A. $52
B. $68
C. $28
D. $40
Answer: A
Explanation:
Choice "c" is correct. The expected value of a decision is computed by multiplying the probability of each
outcome by its value or profit. Each outcome is then added. There is a 60% probability that Dough will sell
6 0 of the 100 additional boxes through regular stores and that means that Dough would have a 60%
chance of making a profit of $20 (60 boxes at a $1 profit ($3 - $2) sold through the regular stores and 40
boxes at a $1 loss ($1 - $2) sold through the thrift stores). There is a 40% probability that Dough will have
a profit of $40 (100 boxes at a $1 profit through the regular store sales and zero boxes sold at a loss
through the thrift store).

Choice "a" is incorrect. The expected value of a decision is computed by multiplying the probability of
each outcome by its value or profit.
Choice "b" is incorrect. The expected value of a decision is computed by multiplying the probability of
each outcome by its value or profit.
Choice "d" is incorrect. The expected value of a decision is computed by multiplying the probability of
each outcome by its value or profit.

NEW QUESTION: 4
The application of the appropriate audit standards is dependent on all of the following issues EXCEPT:
A. Audit requirements
B. Laws and policies of the audit organization.
C. Regulations
D. External control requirement
Answer: D


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