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PRMIA 8004 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Ethics and Professional Standards | - Professional conduct and ethical responsibilities - Industry codes of ethics and decision-making standards |
| Governance, Standards and Regulatory Frameworks | - Regulatory expectations and compliance structures - Risk governance principles in financial institutions |
| Best Practices in Risk Management | - Enterprise risk management frameworks - Operational and financial risk controls |
| Case Study Application | - Governance and ethics decision analysis - Integrated risk assessment scenarios |
PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:
1. When considering the performance of Northern Rock within its peer group of banks, which of the following is not correct?
A) For many years it was regarded as a star-performer in the financial markets.
B) The quality of its' assets was never in question.
C) Only a few months previously it had reported record profits.
D) Its' loan loss record was poor by industry standards.
2. Which of the following was NOT a factor in the WorldCom collapse?
A) Failed corporate governance
B) Unfair pricing to customers
C) Accounting abuses
D) Over stating actual sales
3. Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?
A) Ensure globally accepted standards are adhered to at all costs
B) Respect local customs
C) Take responsibility for your work
D) Respect local laws and regulations
4. When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should ...
A) Ignore local rules and regulations
B) Modify the interpretation of local rules and regulations to meet the situation
C) Respect local rules and regulations
D) Seek advice from a qualified party, being mindful of legal and confidentiality requirements
5. The sensitivity analysis required under IFRS would have done what for China Aviation Oil?
A) Provided investors and analysts with insight into the dynamics of value changes, and the sensitivity of fair value to the underlying drivers of interest rates, exchange rates, and commodity prices
B) Only provided the intrinsic value of its outstanding option positions
C) Only provided the time value of its outstanding option position
D) None of the above
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: A |






