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

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Exam Code: 8009

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

Updated: Apr 27, 2025

Q & A: 112 Questions and Answers

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

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


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


3. Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust

A) was involved in accounting fraud
B) hid profits
C) did not honour its contractual obligations to pay
D) sold them derivative products without properly advising them of the relevant risks


4. The retrocession insurance cover was provided by

A) Fortress Re and their reinsurers
B) The Fortress Re reinsurers only
C) The fronting insurance companies
D) Fortress Re and other insurers


5. Bankgesellschaft Berlin's failures can be best characterised as

A) both A and B
B) none of the above
C) credit risk caused by overexposure to the property market
D) credit risk caused by a diversified portfolio of poor-quality loans


Solutions:

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

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