Free Online PRMIA 8009 Practice Test

Prepare Your PRMIA 8009 Exam Questions with Free online 8009 Practice Test. Get Brilliant Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Exam Results with Valid 8009 Exam Dumps.

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Total 113 Questions | Updated On: May 14, 2024

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Question 1

Which of the following is part of the Group of 30 Report's market risk and stress testing recommendations?

A : To be consistent with regulatory capital measures, 10-day holding periods should be standardized for VaR reporting

B : Historic simulations are not effective methods of stress testing

C : Stress tests should incorporate changes in liquidity

D : Market risk VaR measures should be multiplied by 3 to get to a stress test figure, as long as the VaR model has been back-tested

Answer: C

Question 2

Which of the following does NOT relate to the Orange County case?

A : Where there are excess rewards, there must be risks

B : The Know Your Customer rule

C : Strategies that are not possible to explain to third parties should not be employed by the risk averse

D : Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps

Answer: B

Question 3

A risk manager finds that a client is engaged in a practice that looks like money laundering.

According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:

A : Approach the client about the concern, regardless of what their reaction might be

B : Respect the client's confidentiality as that takes precedence

C : Report this conduct to their immediate supervisor

D : Report the findings immediately to authorities

Answer: C

Question 4

Which of the following are PRMIA Governance Principles?

I, Sufficiency of Key Resources and Process

II. State of the Art Risk Management Technology

III. Ongoing Education and Discernment

IV. Sufficiency of Key Competencies

A : I, II and IV only

B : I and II only

C : I, III and IV only

D : All of these are PRMIA Governance Principles

Answer: C

Question 5

The Chief Risk Officer is responsible for the management of the Risk Management Infrastructure, and as such helps the Board define, and then implements throughout the organization, the risk appetite of the organization.

Which of the following is also the responsibility of the Chief Risk Officer?

A : Maintaining appropriate assurance measures to ensure that the Governance and Risk framework of the organization is effective, and, if any shortcomings are discovered, to escalate these to the Board so that remedial action can be taken in an appropriate and timely manner

B : ensuring that all employees understand the rules and regulations (both internal and external) with which they must comply and the implications, for them and for the organization, of non-compliance

C : Ensures that reporting of risk and governance-related matters are produced in a timely and accurate manner

D : Acts as sponsor for risk throughout the organization and ensures that a risk culture is implemented, and maintained

Answer: C

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Total 113 Questions | Updated On: May 14, 2024

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