Exam Code: 8009
Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
Certification Provider: PRMIA
Corresponding Certification: PRM
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PRMIA 8009 Exam Syllabus Topics:

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

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

1. Washington Mutual's acquisition of Long Beach Financial changed its business model and increased its credit loss profile because

A) the two banks were focussed in different markets
B) Of a general deterioration of credit quality generally
C) The resulting loss rate for Washington Mutual was more than 3 times higher than other mortgage lenders tracked by the FDIC
D) Long Beach Financial had losses which it hadn't realized at the time of the takeover


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

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


3. The retrocession insurance cover was provided by

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


4. The steps which the US Treasury Department and the Federal Reserve took in July 2008 to boost confidence in both Fannie Mae and Freddie Mac did not include which one of the following:

A) Restricting the sale of new Fannie Mae and Freddie Mac securities only to US citizens
B) Reiterating their belief that both companies played a central role in the US housing finance system
C) Access to the Federal Reserve discount window
D) Removing the prohibition on the Treasury Department to buy both companies stock


5. Boards, including Audit and Risk Committees must:
I. Clearly articulate the corporate risk appetite to senior management
II. Thoroughly review compensation plans of potentially "highly compensated positions" for consistency with corporate risk appetite, competitive market conditions and fiduciary responsibility to shareholders III. Have a single member formally given responsibility for understanding and reporting the effectiveness of the corporation's risk management infrastructure IV. Be fully accountable to shareholders and work to the benefit of public good and financial stability

A) I and II only
B) I, II and IV only
C) I, II and III only
D) All of these are responsibilities of Board and Audit Committees


Solutions:

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

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