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PRMIA 8004 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Governance, Standards and Regulatory Frameworks | - Regulatory expectations and compliance structures - Risk governance principles in financial institutions |
| Case Study Application | - Governance and ethics decision analysis - Integrated risk assessment scenarios |
| Best Practices in Risk Management | - Operational and financial risk controls - Enterprise risk management frameworks |
| Ethics and Professional Standards | - Professional conduct and ethical responsibilities - Industry codes of ethics and decision-making standards |
PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:
Question 1
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
A. I, III and IV only
B. I and III only
C. I only
D. All of these are expected of the Risk Management Infrastructure
Question 2
Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?
A. Report to the Regulator any departures from generally accepted methodology or practices
B. Provide advice that is clear and accurate
C. Clearly inform all affected parties of any apparent or actual conflicts of interest
D. Know and abide by applicable rules and regulations
Question 3
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
A. I, III and IV only
B. All of these are expectations of the Organization as a Whole
C. I, II and III only
D. I, II and IV only
Question 4
The steps which the US Treasury Department and the Federal Reserve took in July 2008 to boost confidence in both Fannie Mae and Freddie Mac did not include which one of the following:
A. Reiterating their belief that both companies played a central role in the US housing finance system
B. Restricting the sale of new Fannie Mae and Freddie Mac securities only to US citizens
C. Removing the prohibition on the Treasury Department to buy both companies stock
D. Access to the Federal Reserve discount window
Question 5
The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?
A. Business Model; Corporate Governance; Moral Hazard; and Deposit Protection
B. LPHI Risk; Business Model; Solvency vs. Liquidity: and Deposit Protection
C. Deposit Protection; Moral Hazard; Business Model; and LPHI Risk
D. Corporate Governance; Moral Hazard; Role of Government; and Credit Risk
Solutions:
| Question 1 Answer: A | Question 2 Answer: A | Question 3 Answer: B | Question 4 Answer: A | Question 5 Answer: D |




