PRMIA 8004 Valid Dump : PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

8004 real exams

Exam Code: 8004

Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

Updated: Aug 25, 2025

Q & A: 112 Questions and Answers

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PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

1. Every PRMIA chapter is designed to serve the local needs of members, so they often have fairly independent planning structures and ideas. According to the PRMIA Bylaws, Regional Chapters and Regional Directors:

A) Can have their own offices, bylaws and regulations provided they do not conflict with those of PRMIA
B) Can have meetings that only local members are allowed to attend
C) Can sign contracts on behalf of PRMIA without prior approval from the Board of Directors
D) All of the above


2. The problems which initiated the crisis at Northern Rock during the summer of 2007 were:

A) Doubts arising about the viability of the business model which necessitated Bank of England intervention
B) A general lack of confidence in mortgage backed securities associated in large part with developments in the US sub-prime mortgage market, and doubts emerging about the viability of the Northern Rock business model
C) A depositor run on the bank, following doubts about the viability of the Northern Rock business model
D) Large customer withdrawals despite the UK regulator and the UK Treasury giving assurances that the bank was solvent


3. Which of the following best characterize the problems that developed at Bankers Trust?

A) Over exposure to the property market
B) A failure to try to protect their clients' interests
C) Volume growth at the expense of margin
D) Excessive reliance on volatile and sophisticated derivatives


4. The Chair of the PRMIA Board of Directors may hold the following offices:

A) Vice Chair
B) Secretary
C) Parliamentarian
D) Chair only


5. A risk manager is asked to analyze the credit risk of a convertible bond. The risk manager has never analyzed convertible bonds, but does have significant expertise in credit risk. The risk manager accepts the assignment, finds a paper on the subject through the PRMIA web site and copies the method used there. The risk manager completes the assignment and delivers a report to his or her direct supervisor and the supervisor is quite pleased.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), this was acceptable behavior if the following conditions were met:
I The risk manager disclosed the lack of knowledge about convertible bonds II The methodology employed is disclosed and explained III The report was just to be used for analysis and not in practice IV The risk manager was sure of his/her understanding of the paper found on the web

A) I, II and III
B) I, II and IV
C) I and II
D) I only


Solutions:

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

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