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PRMIA 8009 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: PRMIA Standards of Best Practice, Conduct and Ethics | 30% | - Ethical Decision-Making Framework - Code of Conduct and Professional Responsibilities - Whistleblowing and Reporting Violations - Conflict of Interest and Disclosure |
| Topic 2: Corporate Governance Principles | 25% | - Risk Governance Structure - Transparency and Accountability - Board and Senior Management Oversight - PRMIA Governance Principles |
| Topic 3: Risk Management Case Studies | 25% | - China Aviation Oil - Long-Term Capital Management (LTCM) - Northern Rock - Baring Bank - Metallgesellschaft - Orange County |
| Topic 4: Risk Management Best Practices | 20% | - Compliance and Regulatory Alignment - Enterprise Risk Management Framework - Internal Controls and Risk Limits |
PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:
1. A VaR model for managing market risk at Barings Bank in London would most likely have:
A) Alerted senior management to the problems before the major losses occurred
B) Not correctly assessed the risk in Nick Leeson's option trades as they have non-linear price characteristics
C) Helped very little as Nick Leeson hid many trades
D) Been used if senior management had ever seen it
2. Metallgesellschaft's retail contracts were
A) unhedged
B) hedged using exchange-traded futures with longer maturities than the retail contracts
C) fully hedged using exchange-traded futures of the same maturities as the retail contracts
D) hedged using exchange-traded futures with shorter maturities than the retail contracts
3. Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is defined
A) using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees
B) using the risk reward profile for each business line in the organization
C) as commensurate with policies to attract and retain high income / revenue earners
D) as being the market norm for similarly situated personnel in competitive organizations
4. The "Renewing the Dream" program signed into law by President George W Bush in 2002 was designed to
A) Provide grants of US$800 million to help home buyers with down-payment and closing costs
B) Allow risky, high-cost loans to be credited towards affordable housing goals
C) Provide tax credits of nearly US$2.4 billion over the next 5 years to investors and builders who developed affordable single-family housing in poor and distressed areas
D) Recapitalise Fannie Mae and Freddie Mac with US$2.4 billion of additional capital to ensure they weathered the risks associated with any future downturn in the housing markets
5. When supervising others, a PRMIA member must comply with
A) the standards of the organization where the work is being performed
B) local regulatory authority standards which may be less onerous than PRMIA standards
C) his / her established personal standards of work approved in previous work situations
D) PRMIA Standards
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: D |








