Exam Code: 8009
Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
Certification Provider: PRMIA
Corresponding Certification: PRM
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PRMIA 8009 Exam Syllabus Topics:

SectionObjectives
Topic 1: Governance and Regulatory Standards- Corporate Governance
  • 1. Internal Controls and Audit Functions
  • 2. Risk Committee Structures
  • 3. Board Oversight Responsibilities
- Regulatory Frameworks
  • 1. Basel Accords and Global Standards
  • 2. Compliance Reporting
  • 3. Local Regulatory Requirements
Topic 2: Standards and Professional Practices- Benchmarking and Industry Guidelines
  • 1. Best Practice Comparisons
  • 2. Industry Surveys and Metrics
- Documentation and Reporting Standards
  • 1. Regulatory Submission Requirements
  • 2. Risk Reporting Templates
Topic 3: Risk Management Best Practices- Operational Risk Management
  • 1. Scenario Analysis
  • 2. Risk Mitigation Strategies
  • 3. Risk Identification and Assessment
- Credit and Market Risk
  • 1. Credit Risk Standards
  • 2. Market Risk Best Practices
  • 3. Liquidity Risk Considerations
- Enterprise Risk Management
  • 1. ERM Frameworks
  • 2. Integration Across Departments
  • 3. Risk Appetite and Tolerance
Topic 4: Ethics and Professional Conduct- Ethical Principles
  • 1. Transparency and Disclosure
  • 2. Code of Conduct
  • 3. Conflict of Interest
- Case Studies on Ethical Scenarios
  • 1. Lessons Learned
  • 2. Practical Applications
  • 3. Decision-Making Frameworks

PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:

While doing a work assignment, a PRMIA member notices behaviour that is outside the ethical standards of their client organization and reports the matter to their immediate supervisor in the organization (if he or she wasn't the one engaging in such behaviour). The matter is neither progressed nor actioned.
The PRMIA member should:

  • A. report the matter to the organization's Compliance Dept.
  • B. contact the Whistle-Blowing Hotline of the organization or, if none exits, to the PRMIA Ethics Committee for guidance and assistance
  • C. stay silent on the basis that they have reported it
  • D. report the matter to their PRMIA chapter
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

In the case of National Australia Bank, which of the following was present?

  • A. A window of time between close of day for reporting purposes and back office checking that allowed traders to hide losses using fictitious trades
  • B. The Board received risk management information that was incorrect, incomplete or insufficiently detailed
  • C. Neither A nor B
  • D. Both A and B
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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

  • A. Acquisitions like Long Beach and Providian
  • B. Catastrophic losses in its own credit card division
  • C. The general downturn in the economy of the US
  • D. By lowering its own credit underwriting standards
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

MGRM's losses due to "stacking" started to increase when

  • A. the oil market went from backwardation to contango
  • B. the oil market went from weak backwardation to strong backwardation
  • C. the oil market went from contango to backwardation
  • D. the oil market went from strong contango to weak contango
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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

  • A. Operational and Regulatory Compliance Risk
  • B. Market Risk
  • C. Credit Risk
  • D. All of the Above
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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