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PRMIA 8009 - Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition

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Total 110 questions

Which US regulatory authority resolved the restructuring of Washington Mutual?

A.

The Office of Thrift Supervision

B.

Federal Deposit Insurance Corporation

C.

The Federal Reserve Bank

D.

None of the above

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.

Both A and B

D.

Neither A nor B

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

A.

Vote in Board elections

B.

Attend at least one PRMIA chapter meeting per year

C.

Adhere to the PRMIA Standards of Best Practice, Conduct and Ethics

D.

All of the above

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

A.

Market Risk

B.

Credit Risk

C.

Operational and Regulatory Compliance Risk

D.

All of the Above

Which of the following best characterizes the problems that developed at Bankgesellschaft Berlin?

A.

Volume growth at the expense of margin.

B.

Excessive reliance on volatile trading income.

C.

Banking is a "for-profit" business, not a means of fulfilling political goals.

D.

A company culture where profits may justify "excesses."

PRMIA is incorporated as:

A.

A for-profit corporation

B.

A non-profit corporation

C.

A charitable trust

D.

A non profit corporation with for profit subsidiaries

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

A.

Seek advice from a qualified party, being mindful of legal and confidentiality requirements

B.

Modify the interpretation of local rules and regulations to meet the situation

C.

Ignore local rules and regulations

D.

Respect local rules and regulations

The Q4 2003 trading strategy of China Aviation Oil was

A.

to buy puts and sell calls

B.

to buy calls and sell puts

C.

to sell puts and buy calls

D.

to sell calls and buy puts

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 measures to ensure that the Governance and Risk framework of the organization is effective, and, if any shortcomings are discovered, to escalate these to the Board so that remedial action can be taken in an appropriate and timely manner

B.

ensuring that all employees understand the rules and regulations (both internal and external) with which they must comply and the implications, for them and for the organization, of non-compliance

C.

Ensures that reporting of risk and governance-related matters are produced in a timely and accurate manner

D.

Acts as sponsor for risk throughout the organization and ensures that a risk culture is implemented, and maintained

A risk assessment report generated by a PRMIA member creates an apparent conflict of interest between the PRMIA standards and those of the client organization.

Of the following, which is the correct hierarchy to follow to resolve the conflict?

I. The decision of a superior within the organization

II. PRMIA Standards

III. Guidelines from the regulators in which the organization operates

IV. The laws of the country

A.

I, II, III, and IV

B.

IV, III, II, and I

C.

II, I, IV, and III

D.

III, II, IV, and I