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PRMIA 8009 Exam Syllabus Topics:

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

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

Question 1

Unlike the case at Barings Bank, National Australia Bank:

A. Was not dealing in derivatives
B. Had a Board of Directors that was unaware of the true nature of trading activities
C. Had a risk management infrastructure that was credited with doing its' job well, despite the losses
D. Had a separation of duties between trading and back office


Question 2

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

A. determined by business-unit leaders
B. determined at the Board level without influence by business unit leaders
C. determined at the Board level with inputs from business unit leaders
D. determined by the regulators


Question 3

Which US regulatory authority resolved the restructuring of Washington Mutual?

A. Federal Deposit Insurance Corporation
B. The Federal Reserve Bank
C. None of the above
D. The Office of Thrift Supervision


Question 4

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

A. determined by business-unit leaders
B. determined at the Board level without influence by business unit leaders
C. determined at the Board level with inputs from business unit leaders
D. determined by the regulators


Question 5

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

A. III and IV only
B. All of these were key elements of the problems at LTCM
C. III only
D. I and III only


Solutions:

Question 1
Answer: D
Question 2
Answer: B
Question 3
Answer: D
Question 4
Answer: B
Question 5
Answer: C

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