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PRMIA 8009 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Risk Management Standards | - Regulatory and industry standards - Global risk management frameworks |
| Ethics in Risk Management | - Professional ethics and conduct standards - Conflict of interest management - Ethical decision-making in financial risk scenarios |
| Governance | - Board responsibilities and oversight - Internal controls and compliance systems - Corporate governance structures |
| Best Practices in Risk Management | - Enterprise risk management implementation - Risk monitoring and reporting - Risk identification and assessment processes |
PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:
Question 1
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. II, I, IV, and III
B. I, II, III, and IV
C. III, II, IV, and I
D. IV, III, II, and I
Question 2
Unlike the case at Barings Bank, National Australia Bank:
A. Had a separation of duties between trading and back office
B. Had a risk management infrastructure that was credited with doing its' job well, despite the losses
C. Had a Board of Directors that was unaware of the true nature of trading activities
D. Was not dealing in derivatives
Question 3
The Basic Knowledge a PPRMIA member should comply with, as stipulated within the PRMIA Standards of Best Practice, Conduct & Ethics, is to
A. only improve their PERSONAL professional competence
B. learn from a qualified risk management practitioner
C. maintains and improve their professional competence and strive to maintain and improve the competence of other risk professionals
D. only possess the required skills and/or certification to complete the risk assessment / management work at hand
Question 4
Which of the following was NOT a factor in the National Australia Bank case?
A. Money laundering using foreign exchange trades for political leaders
B. Inadequate back office procedures
C. Improper or insufficient Board-level communication regarding the importance of risk management and oversight
D. Rogue traders
Question 5
In the case of National Australia Bank, which of the following was present?
A. The Board received risk management information that was incorrect, incomplete or insufficiently detailed
B. Neither A nor B
C. A window of time between close of day for reporting purposes and back office checking that allowed traders to hide losses using fictitious trades
D. Both A and B
Solutions:
| Question 1 Answer: D | Question 2 Answer: A | Question 3 Answer: C | Question 4 Answer: A | Question 5 Answer: D |



