Professional Risk Manager (PRM) Designation 8004 Dumps Questions

1. What was the main risk scenario on the Metallgesellschaft trading strategy?

2. Which of the following is part of the Group of 30 Report's market risk and stress testing recommendations?

3. 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:

4. The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?

5. 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:

6. 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

7. Which of the following regarding Orange County is FALSE?

8. Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?

9. Barings failed to recognize that Nick Leeson's losses were increasing because:

10. 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:

11. According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:

12. When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should …

13. 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?

14. 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 method used there. The risk manager completes the assignment and delivers a report to his or her direct supervisor and the supervisor is quite pleased.

According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), this was acceptable behavior if the following conditions were met:

I. The risk manager disclosed the lack of knowledge about convertible bonds

II. The methodology employed is disclosed and explained

III. The report was just to be used for analysis and not in practice

IV. The risk manager was sure of his/her understanding of the paper found on the web

15. Which items below were at the core of the problems at Bankgesellschaft Berlin?

16. The problems at WorldCom can best be characterized as related to:

17. The key people involved in the application of good governance and risk management must:

I. be trustworthy

II. be honest

III. be approved by the local regulator

IV. treat others fairly at all times

18. As LTCM started to have major losses, it compounded its problems by doing what?

19. Washington Mutual's acquisition of Long Beach Financial changed its business model and increased its credit loss profile because

20. 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:

21. John Smith wants to run for election to the Board of Directors of PRMIA.

To be nominated, he needs:

22. The Fortress Re finite reinsurance model

23. The Financial Accounting and Reporting Infrastructure of any organization must:

I. Accurately represent the corporation's current and known financial condition in a timely manner

II. Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose

III. Provide a detailed description of the Risk Management Infrastructure in the organization's Annual Report to Shareholders

IV. Provide an auditable Annual Statement of Compliance with the Board's publicly stated Standards of Corporate Governance to the Board and Audit Committee

24. The Q4 2003 trading strategy of China Aviation Oil was

25. Which of the following was NOT a factor in the National Australia Bank case?

26. Select the one correct statement relative to Barings Bank.

27. According to PRMIA governance principles, boards and audit committees should …

28. According to the Northern Rock Case Study, what is Forced Insolvency?

29. Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is defined

30. Bankgesellschaft Berlin's failures can be best characterised as

31. 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 Regulators

32. With a PRMIA member's need to reconcile their internal and external responsibility to perform their work in an independent and appropriate fiduciary manner, which of the following options must be taken into consideration when performing risk management duties?

33. Which of the following was not received by Northern Rock as official support from the UK banking and government authorities?

34. TMFI's internal procedures and management were

35. As a result of the US government's intervention, which of the following is true?

36. How much of Washington Mutual's assets were funded by customer deposits for the decade ending in 2006?

37. Which of the following is FALSE?

38. A PRMIA member is offered a highly paid work assignment on the condition that some aspects of assignment are not to be done according to PRMIA standards.

What should they do?

39. When describing the reasons for the collapse of China Aviation Oil, which of the following was not cited?

40. According to the G-30 Study, the risk management infrastructure's funding must be