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PRMIA 8009 Exam Syllabus Topics:

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

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

Which of the following is FALSE?

  • A. SIMEX made inquiries to Barings Bank about large margin calls on its positions
  • B. Nick Leeson dealt in complex derivatives lacking transparency of pricing
  • C. Nick Leeson also ran the back office for his trading area
  • D. Nick Leeson claimed to be running an arbitrage book
Answer: B

According to the G-30 Study, the risk management infrastructure's funding must be

  • A. determined by business-unit leaders
  • B. determined at the Board level with inputs from business unit leaders
  • C. determined by the regulators
  • D. determined at the Board level without influence by business unit leaders
Answer: D

Metallgesellschaft's retail contracts were

  • A. hedged using exchange-traded futures with longer maturities than the retail contracts
  • B. unhedged
  • C. hedged using exchange-traded futures with shorter maturities than the retail contracts
  • D. fully hedged using exchange-traded futures of the same maturities as the retail contracts
Answer: C

The "normal" credit loss profile of Washington Mutual was increased by which of the following?

  • A. Catastrophic losses in its own credit card division
  • B. The general downturn in the economy of the US
  • C. Acquisitions like Long Beach and Providian
  • D. By lowering its own credit underwriting standards
Answer: C

Which of the following was not cited within the chain of miscalculations and deferred decisions for the downfall of Fannie Mae and Freddie Mac

  • A. Lawmakers postponed strenghtening regulatory oversight due to partisan infighting
  • B. Extreme exposure to foreign currency exposures and losses from non-US$ mortgages
  • C. They did not raise enough capital to weather the storm as the housing slump expanded
  • D. Under-management and under-measurement of market and liquidity risk
Answer: B

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