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

  • Exam Code: 8009
  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Updated: Jul 27, 2026
  • Q & A: 112 Questions and Answers

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PRMIA 8009 Exam Syllabus Topics:

SectionObjectives
Topic 1: Governance and Regulatory Standards- Regulatory Frameworks
  • 1. Compliance Reporting
  • 2. Basel Accords and Global Standards
  • 3. Local Regulatory Requirements
- Corporate Governance
  • 1. Internal Controls and Audit Functions
  • 2. Risk Committee Structures
  • 3. Board Oversight Responsibilities
Topic 2: Ethics and Professional Conduct- Case Studies on Ethical Scenarios
  • 1. Decision-Making Frameworks
  • 2. Lessons Learned
  • 3. Practical Applications
- Ethical Principles
  • 1. Transparency and Disclosure
  • 2. Conflict of Interest
  • 3. Code of Conduct
Topic 3: 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
Topic 4: Risk Management Best Practices- Credit and Market Risk
  • 1. Liquidity Risk Considerations
  • 2. Market Risk Best Practices
  • 3. Credit Risk Standards
- Enterprise Risk Management
  • 1. Integration Across Departments
  • 2. ERM Frameworks
  • 3. Risk Appetite and Tolerance
- 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:

1. PRMIA Governance Principles

A) must be adhered to by all PRMIA member organizations
B) must be adhered to by all financial firms that are PRMIA members
C) must be adhered to by all PRM charter holders
D) is a set of recommendations based on research and best practice


2. A risk manager finds that a client is engaged in a practice that looks like money laundering.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:

A) Approach the client about the concern, regardless of what their reaction might be
B) Respect the client's confidentiality as that takes precedence
C) Report this conduct to their immediate supervisor
D) Report the findings immediately to authorities


3. Which of the following was not considered to be a positive outcome of the Northern Rock Case Study?

A) The role of the UK government and the possible underwriting of risks by tax-payers, and the general question of Moral Hazard
B) It emphasised the importance of effective governance arrangements within financial firms
C) The reform of the Deposit Protection Scheme because of its internal inconsistencies
D) The original successful business model had not stress tested sufficiently for the incidence of Low Probability, High Impact incidents


4. 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) All of these are expectations of the Organization as a Whole
B) I, III and IV only
C) I, II and IV only
D) I, II and III only


5. What was the main risk scenario on the Metallgesellschaft trading strategy?

A) The short-term price of the underlying being higher than the long-run contract
B) Realized losses on short-term contracts against unrealized gains on the long-run contract
C) The final price of the underlying being higher than the initial price
D) The initial price of the underlying being higher than the final price


Solutions:

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

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