8004 exam

When describing the reasons for the collapse of China Aviation Oil, which of the following was not cited?A . No properly defined risk management policies in place and general lack of oversight by senior managementB . Time value was not taken into account during the contract valuation processC . Loss...

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

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 . Can have their own offices, bylaws and regulations provided they do not conflict with those of PRMIAB...

A risk manager is asked to analyze the credit risk of a convertible bond. The risk manager has never analyzed convertible bonds, but does have significant expertise in credit risk. The risk manager accepts the assignment, finds a paper on the subject through the PRMIA web site and copies the...

Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is definedA . as being the market norm for similarly situated personnel in competitive organizationsB . using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employeesC...

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,...

Which items below were at the core of the problems at Bankgesellschaft Berlin?A . Political corruption and poor managementB . Over exposure to the property marketC . Rash guarantees given to investors in property linked fundsD . All of the aboveView AnswerAnswer: D

Which of the following was the key contributory risk factor to the problems at LTCM in the summer of 1998? I. Model Risk II. Lack of Transparency III. Breakdown of Historical Correlations IV. Over Regulation by Federal RegulatorsA . I and III onlyB . III onlyC . III and IV...

Washington Mutual's acquisition of Long Beach Financial changed its business model and increased its credit loss profile becauseA . The resulting loss rate for Washington Mutual was more than 3 times higher than other mortgage lenders tracked by the FDICB . the two banks were focussed in different marketsC ....

The Chief Risk Officer is responsible for the management of the Risk Management Infrastructure, and as such helps the Board define, and then implements throughout the organization, the risk appetite of the organization. Which of the following is also the responsibility of the Chief Risk Officer?A . Maintaining appropriate assurance...