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PRMIA 8009 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Best Practices in Risk Management | - Risk identification and assessment processes - Risk monitoring and reporting - Enterprise risk management implementation |
| Ethics in Risk Management | - Professional ethics and conduct standards - Conflict of interest management - Ethical decision-making in financial risk scenarios |
| Governance | - Board responsibilities and oversight - Corporate governance structures - Internal controls and compliance systems |
| Risk Management Standards | - Regulatory and industry standards - Global risk management frameworks |
PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:
1. An Organization as a Whole must:
I. Provide an environment in which an Escalation Policy can be effective II. Commit itself to actual enforcement of corporate governance policies III. Provide ongoing education and training to all employees on the role of risk management and corporate governance in the organization IV. Publish an external auditor's opinion that the corporation is in compliance with the Board's publicly stated Standards of Corporate Governance
A) I, II and III only
B) I, III and IV only
C) I, II and IV only
D) All of these are expectations of the Organization as a Whole
2. As a result of the US government's intervention, which of the following is true?
A) The cost of borrowing for house buyers will rise because of the risk premium now built into the cost of such a government guarantee
B) The systemic risks still remain in the housing market because it increases the US government's debt
C) The cost of borrowing for Fannie Mae and Freddie Mac should decline because the government will be standing behind their debts and the buying and selling of mortgage debt will continue
D) Foreign Central Banks will continue to sell their holdings of Fannie Mae and Freddie Mac securities
3. Which of the following best characterize the problems that developed at Bankers Trust?
A) Over exposure to the property market
B) A failure to try to protect their clients' interests
C) Volume growth at the expense of margin
D) Excessive reliance on volatile and sophisticated derivatives
4. The sensitivity analysis required under IFRS would have done what for China Aviation Oil?
A) None of the above
B) Provided investors and analysts with insight into the dynamics of value changes, and the sensitivity of fair value to the underlying drivers of interest rates, exchange rates, and commodity prices
C) Only provided the time value of its outstanding option position
D) Only provided the intrinsic value of its outstanding option positions
5. Which US regulatory authority resolved the restructuring of Washington Mutual?
A) Federal Deposit Insurance Corporation
B) None of the above
C) The Federal Reserve Bank
D) The Office of Thrift Supervision
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: D |
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