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PRMIA 8009 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Ethics in Risk Management | - Professional ethics and conduct standards - Ethical decision-making in financial risk scenarios - Conflict of interest management |
| Governance | - Corporate governance structures - Board responsibilities and oversight - Internal controls and compliance systems |
| Risk Management Standards | - Global risk management frameworks - Regulatory and industry standards |
| Best Practices in Risk Management | - Risk identification and assessment processes - Risk monitoring and reporting - Enterprise risk management implementation |
PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:
1. The "Renewing the Dream" program signed into law by President George W Bush in 2002 was designed to
A) Provide grants of US$800 million to help home buyers with down-payment and closing costs
B) Provide tax credits of nearly US$2.4 billion over the next 5 years to investors and builders who developed affordable single-family housing in poor and distressed areas
C) Recapitalise Fannie Mae and Freddie Mac with US$2.4 billion of additional capital to ensure they weathered the risks associated with any future downturn in the housing markets
D) Allow risky, high-cost loans to be credited towards affordable housing goals
2. What was the most important loss for Bankers Trust?
A) Money due to unfavourable market moves
B) Loss of market share due to their licenses being revoked
C) Loss of its' reputation due to actions seen as detrimental to their clients
D) Time spent on legal proceedings in courts
3. Which of the following does NOT relate to the Orange County case?
A) Strategies that are not possible to explain to third parties should not be employed by the risk averse
B) Where there are excess rewards, there must be risks
C) Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps
D) The Know Your Customer rule
4. Every PRMIA chapter is designed to serve the local needs of members, so they often have fairly independent planning structures and ideas. According to the PRMIA Bylaws, Regional Chapters and Regional Directors:
A) All of the above
B) Can sign contracts on behalf of PRMIA without prior approval from the Board of Directors
C) Can have their own offices, bylaws and regulations provided they do not conflict with those of PRMIA
D) Can have meetings that only local members are allowed to attend
5. Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is defined
A) as commensurate with policies to attract and retain high income / revenue earners
B) using the risk reward profile for each business line in the organization
C) using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees
D) as being the market norm for similarly situated personnel in competitive organizations
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: C |



