Real PRM Certification Exam 8009 Dumps Questions

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

2. Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:

I. competitive market conditions

II. ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders

III. ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators

IV. reporting all such personnel to the local regulator

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

4. Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust

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

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

7. The Fortress Re finite reinsurance model

8. According to the Group of 30 Report, dealers and end-users are encouraged to:

9. Which of the following should NOT be part of the Risk Management Infrastructure?

10. The problems at Bankgesellschaft Berlin can best be characterized as failures related to:

11. Which of the following is FALSE?

12. 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

13. 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 it to the firm's Executive Committee.

According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), which of the following actions is most appropriate:

14. PRMIA Governance Principles

15. For the sentence

"The organization should have at its disposal employees who have adequate _________, ________ and _______ to perform the tasks assigned to them",

Choose the correct combination of words from the following options:

16. 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?

17. The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:

18. As a PRMIA member, you have certain responsibilities. Among these are the requirement(s) to:

19. Finite insurance is reinsurance which

20. John Smith wants to run for election to the Board of Directors of PRMIA. To be nominated, he needs:

21. The Chair of the PRMIA Board of Directors may hold the following offices:

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

23. The failure of Washington Mutual was NOT due to which one of the following?

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

25. PwC concluded that the accounting policy adopted by China Aviation Oil was incorrect because it

26. Taisei Fire and Marine Insurance Co

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

28. 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:

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

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

31. The Risk Management Infrastructure of an organization must:

I. To the extent possible, avoid silos of control and oversight

II. Have budgets set by the business unit leaders

III. Actively provide ongoing professional development for risk management staff and require them to be committed to standards of best practice, conduct and ethics in their work

IV. Provide general risk management and related corporate governance training for employees of the organization as a Whole

32. Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?

33. The "normal" credit loss profile of Washington Mutual was increased by which of the following?

34. The hedging strategy employed by MG Refining & Marketing has been called:

35. What is (are) the lesson(s) of the Barings' failure?

36. According to the Group of 30 Report, option contracts:

37. An Organization as a Whole must:

I. Provide an environment in which an Escalation Policy can be effective

II. Commit itself to actual enforcement of corporate governance policies

III. Provide ongoing education and training to all employees on the role of risk management and corporate governance in the organization

IV. Publish an external auditor's opinion that the corporation is in compliance with the Board's publicly stated Standards of Corporate Governance

38. The problems in the Orange County case can best be characterized as failures related to:

39. The financial intermediary services provided by Fannie Mae and Freddie Mac were designed to

40. Which of the following does NOT relate to the Orange County case?