PRIMA 8004 2011 PRM Certification – Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Online Training
PRIMA 8004 Online Training
The questions for 8004 were last updated at Dec 23,2024.
- Exam Code: 8004
- Exam Name: 2011 PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
- Certification Provider: PRIMA
- Latest update: Dec 23,2024
What was the main risk scenario on the Metallgesellschaft trading strategy?
- A . Realized losses on short-term contracts against unrealized gains on the long-run contract
- B . The final price of the underlying being higher than the initial price
- C . The initial price of the underlying being higher than the final price
- D . The short-term price of the underlying being higher than the long-run contract
Which of the following is part of the Group of 30 Report’s market risk and stress testing recommendations?
- A . To be consistent with regulatory capital measures, 10-day holding periods should be standardized for VaR reporting
- B . Historic simulations are not effective methods of stress testing
- C . Stress tests should incorporate changes in liquidity
- D . Market risk VaR measures should be multiplied by 3 to get to a stress test figure, as long as the VaR model has been back-tested
A risk manager finds that a client is engaged in a practice that looks like money laundering.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:
- A . Approach the client about the concern, regardless of what their reaction might be
- B . Respect the client’s confidentiality as that takes precedence
- C . Report this conduct to their immediate supervisor
- D . Report the findings immediately to authorities
The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?
- A . LPHI Risk; Business Model; Solvency vs. Liquidity: and Deposit Protection
- B . Corporate Governance; Moral Hazard; Role of Government; and Credit Risk
- C . Deposit Protection; Moral Hazard; Business Model; and LPHI Risk
- D . Business Model; Corporate Governance; Moral Hazard; and Deposit Protection
For the sentence
"The organization shall encourage all employees to keep abreast of the latest developments in their particular areas of expertise, through ____________, _____________, and _____________ and shall make adequate resources available to enable this to occur,"
Choose the correct combinations of words from the following options:
- A . courses, conferences, journals
- B . conferences, discussion groups, blog sites
- C . courses, educational certification, journals
- D . journals, courses, compliance mandates
Which of the following are PRMIA Governance Principles?
I. Sufficiency of Key Resources and Process
II. State of the Art Risk Management Technology
III. Ongoing Education and Discernment
IV. Sufficiency of Key Competencies
- A . I, II and IV only
- B . I and II only
- C . I, III and IV only
- D . All of these are PRMIA Governance Principles
Which of the following regarding Orange County is FALSE?
- A . Bob Citron engaged in risky strategies to benefit personally
- B . Bob Citron tried to "ride the yield curve"
- C . Bob Citron heavily leveraged his positions using repos
- D . Citron’s losses were eventually exposed by massive margin calls
Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?
- A . Ensure globally accepted standards are adhered to at all costs
- B . Respect local customs
- C . Respect local laws and regulations
- D . Take responsibility for your work
Barings failed to recognize that Nick Leeson’s losses were increasing because:
- A . Leeson ran the front office
- B . The London office did not ask for any reports
- C . Leeson hid his trades in a suspense account
- D . The margin report sent to London did not show the true margin needs
Mary Jones wants the Bylaws of PRMIA to be changed so that people can’t join PRMIA unless they meet a set of criteria she has devised with her colleagues.
She can do this by getting which of the following approvals:
- A . The Board of Directors, but only if the Blue Ribbon Panel affirms the change
- B . The Board of Directors and a majority of the Members
- C . The Board of Directors alone
- D . 34 of all Members
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