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

8009
  • Exam Code: 8009
  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Updated: Oct 26, 2026
  • Q & A: 112 Questions and Answers

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PRMIA 8009 Exam Syllabus Topics:

SectionObjectives
Topic 1: Ethics in Risk Management- Conflict of interest management
- Ethical decision-making in financial risk scenarios
- Professional ethics and conduct standards
Topic 2: Governance- Board responsibilities and oversight
- Corporate governance structures
- Internal controls and compliance systems
Topic 3: Risk Management Standards- Global risk management frameworks
- Regulatory and industry standards
Topic 4: Best Practices in Risk Management- Risk identification and assessment processes
- Risk monitoring and reporting
- Enterprise risk management implementation

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

Question #1

Which of the following was NOT a factor in the National Australia Bank case?

  • A. Money laundering using foreign exchange trades for political leaders
  • B. Inadequate back office procedures
  • C. Rogue traders
  • D. Improper or insufficient Board-level communication regarding the importance of risk management and oversight
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

As a result of the US government's intervention, which of the following is true?

  • A. Foreign Central Banks will continue to sell their holdings of Fannie Mae and Freddie Mac securities
  • B. The cost of borrowing for house buyers will rise because of the risk premium now built into the cost of such a government guarantee
  • C. The cost of borrowing for Fannie Mae and Freddie Mac should decline because the government will be standing behind their debts and the buying and selling of mortgage debt will continue
  • D. The systemic risks still remain in the housing market because it increases the US government's debt
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #3

Which of the following was a key problem in the Barings Bank case?

  • A. Leeson was executing an arbitrage strategy even though he was not authorized to do so
  • B. Difference in the contract sizes in the OSE and SIMEX
  • C. Having the back office and front office operations under the same person
  • D. The different time zones that the office was trading in
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

Barings failed to recognize that Nick Leeson's losses were increasing because:

  • A. Leeson ran the front office
  • B. Leeson hid his trades in a suspense account
  • C. The margin report sent to London did not show the true margin needs
  • D. The London office did not ask for any reports
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

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 sign contracts on behalf of PRMIA without prior approval from the Board of Directors
  • B. Can have meetings that only local members are allowed to attend
  • C. Can have their own offices, bylaws and regulations provided they do not conflict with those of PRMIA
  • D. All of the above
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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