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

A. Operational and Regulatory Compliance Risk

B. All of the Above

C. Credit Risk

D. Market Risk

A. Both losses grew over time, but were not discovered by management until too late.

B. Both traded in illiquid and obscure markets that were easy to manipulate.

C. Both losses were eventually exposed by massive margin calls.

D. Both relied on a star manger, supposedly in a low risk business.

A. A for-profit corporation

B. A non profit corporation with for profit subsidiaries

C. A charitable trust

D. A non-profit corporation

A. Is defined as that which is best practiced within an enterprise risk management framework, guided by the PRMIA Standards of Best Practice, Conduct and Ethics above all else

B. Is defined as business decision making predicated on a belief in potential rewards, balanced with the knowledge, understanding and appreciation of the risk taken to pursue those potential rewards

C. Eliminates risk to the greatest extent possible

D. Is defined as the assembled knowledge and wisdom of the collective stakeholders in the organization, set to maximize shareholder value

A. to sell puts and buy calls

B. to buy puts and sell calls

C. to buy calls and sell puts

D. to sell calls and buy puts

A. as commensurate with policies to attract and retain high income / revenue earners

B. as being the market norm for similarly situated personnel in competitive organizations

C. using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees

D. using the risk reward profile for each business line in the organization

A. hid profits

B. sold them derivative products without properly advising them of the relevant risks

C. was involved in accounting fraud

D. did not honour its contractual obligations to pay

A. Rash guarantees given to investors in property linked funds

B. Over exposure to the property market

C. All of the above

D. Political corruption and poor management