PRMIA 8009 Q&A - in .pdf

  • Exam Code: 8009
  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Q & A: 112 Questions and Answers
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  • Exam Code: 8009
  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Q & A: 112 Questions and Answers
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PRMIA 8009 Exam Syllabus Topics:

SectionObjectives
Ethics and Professional Conduct- Case Studies on Ethical Scenarios
  • 1. Decision-Making Frameworks
  • 2. Practical Applications
  • 3. Lessons Learned
- Ethical Principles
  • 1. Conflict of Interest
  • 2. Transparency and Disclosure
  • 3. Code of Conduct
Standards and Professional Practices- Documentation and Reporting Standards
  • 1. Regulatory Submission Requirements
  • 2. Risk Reporting Templates
- Benchmarking and Industry Guidelines
  • 1. Best Practice Comparisons
  • 2. Industry Surveys and Metrics
Governance and Regulatory Standards- Corporate Governance
  • 1. Internal Controls and Audit Functions
  • 2. Board Oversight Responsibilities
  • 3. Risk Committee Structures
- Regulatory Frameworks
  • 1. Basel Accords and Global Standards
  • 2. Compliance Reporting
  • 3. Local Regulatory Requirements
Risk Management Best Practices- Enterprise Risk Management
  • 1. Integration Across Departments
  • 2. ERM Frameworks
  • 3. Risk Appetite and Tolerance
- Credit and Market Risk
  • 1. Market Risk Best Practices
  • 2. Credit Risk Standards
  • 3. Liquidity Risk Considerations
- Operational Risk Management
  • 1. Risk Identification and Assessment
  • 2. Scenario Analysis
  • 3. Risk Mitigation Strategies

PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:

Question #1

TMFI's internal procedures and management were

  • A. fully aware of the uninsured risks Fortress Re were taking
  • B. aware that they had some uninsured liabilities but thought they had enough capital to withstand any uninsured losses
  • C. absolutely unaware of their uninsured liabilities
  • D. None of the above
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

Select the one correct statement relative to Barings Bank.

  • A. Proprietary and agency trading were separate and did increase risk.
  • B. Proprietary and agency trading were combined and therefore did not increase risk.
  • C. Proprietary and agency trading were combined and therefore did increase risk.
  • D. Proprietary and agency trading were separate and therefore did not increase risk.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #3

The Chair of the PRMIA Board of Directors may hold the following offices:

  • A. Chair only
  • B. Secretary
  • C. Parliamentarian
  • D. Vice Chair
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

When describing the reasons for the collapse of China Aviation Oil, which of the following was not cited?

  • A. Time value was not taken into account during the contract valuation process
  • B. No properly defined risk management policies in place and general lack of oversight by senior management
  • C. Senior management in China were aware of the positions but did not understand the complexities of risk managing them
  • D. Loss generating positions were rolled over by selling options on larger positions to generate cash premiums' to settle existing position losses
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #5

Unlike the case at Barings Bank, National Australia Bank:

  • A. Was not dealing in derivatives
  • B. Had a Board of Directors that was unaware of the true nature of trading activities
  • C. Had a separation of duties between trading and back office
  • D. Had a risk management infrastructure that was credited with doing its' job well, despite the losses
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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