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PRMIA 8009 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Risk Management Case Studies | 25% | - Orange County - China Aviation Oil - Baring Bank - Long-Term Capital Management (LTCM) - Northern Rock - Metallgesellschaft |
| Risk Management Best Practices | 20% | - Compliance and Regulatory Alignment - Internal Controls and Risk Limits - Enterprise Risk Management Framework |
| PRMIA Standards of Best Practice, Conduct and Ethics | 30% | - Whistleblowing and Reporting Violations - Code of Conduct and Professional Responsibilities - Conflict of Interest and Disclosure - Ethical Decision-Making Framework |
| Corporate Governance Principles | 25% | - Board and Senior Management Oversight - PRMIA Governance Principles - Risk Governance Structure - Transparency and Accountability |
PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:
The "normal" credit loss profile of Washington Mutual was increased by which of the following?
- A. Acquisitions like Long Beach and Providian
- B. Catastrophic losses in its own credit card division
- C. By lowering its own credit underwriting standards
- D. The general downturn in the economy of the US
Correct Answer: A 🗳️
The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:
- A. All PRMIA Fellow Members
- B. A two-thirds affirmative vote of all members
- C. The Blue Ribbon Advisory Panel
- D. The Regional Directors
Correct Answer: D 🗳️
Barings failed to recognize that Nick Leeson's losses were increasing because:
- A. Leeson hid his trades in a suspense account
- B. Leeson ran the front office
- C. The London office did not ask for any reports
- D. The margin report sent to London did not show the true margin needs
Correct Answer: A 🗳️
As a PRMIA member, you have certain responsibilities. Among these are the requirement(s) to:
- A. Attend at least one PRMIA chapter meeting per year
- B. Adhere to the PRMIA Standards of Best Practice, Conduct and Ethics
- C. Vote in Board elections
- D. All of the above
Correct Answer: B 🗳️
National Australia Bank and Barings cases are similar in that:
- A. The back offices had inadequate procedures
- B. Both A and B
- C. Losses kept increasing while rogue trader(s) hid their positions
- D. None of the above
Correct Answer: B 🗳️
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