8009

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 contractB . The final price of the underlying being higher than the initial priceC . The initial price of the underlying being higher than the final priceD...

The Q4 2003 trading strategy of China Aviation Oil wasA . to buy puts and sell callsB . to buy calls and sell putsC . to sell puts and buy callsD . to sell calls and buy putsView AnswerAnswer: D

Which of the following should NOT be part of the Risk Management Infrastructure?A . Define the organization's definition of risk management as articulated by the Board in clear and uncertain termsB . Include financial risk management, compliance and external reporting and, to the extent that resources allow, should exclude legal...

A risk manager has just completed a risk assessment project. The report has been given to the risk manager's direct supervisor, who refuses to escalate the material issues raised in the report. Further, the direct supervisor edits the report to remove the section describing the material risk, who then submits...

The "normal" credit loss profile of Washington Mutual was increased by which of the following?A . The general downturn in the economy of the USB . By lowering its own credit underwriting standardsC . Acquisitions like Long Beach and ProvidianD . Catastrophic losses in its own credit card divisionView AnswerAnswer:...

Which of the following does NOT relate to the Orange County case?A . Where there are excess rewards, there must be risksB . The Know Your Customer ruleC . Strategies that are not possible to explain to third parties should not be employed by the risk averseD . Fractured organisational...

According to PRMIA governance principles, boards and audit committees should …A . Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholdersB . Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructureC . Be composed of...

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 beB ....

Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?A . Know and abide by applicable rules and regulationsB . Clearly inform all affected parties of any apparent or actual conflicts of interestC . Report to the...

The problems at WorldCom can best be characterized as related to:A . Market RiskB . Credit RiskC . Operational and Regulatory Compliance RiskD . All of the AboveView AnswerAnswer: C