PRMIA 8009 Q&A - in .pdf

  • 8009 pdf
  • Exam Code: 8009
  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Updated: Aug 30, 2026
  • Q & A: 112 Questions and Answers
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  • Exam Code: 8009
  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Updated: Aug 30, 2026
  • Q & A: 112 Questions and Answers
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PRMIA 8009 Exam Syllabus Topics:
SectionObjectives
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
Ethics and Professional Conduct- Ethical Principles
  • 1. Conflict of Interest
  • 2. Code of Conduct
  • 3. Transparency and Disclosure
- Case Studies on Ethical Scenarios
  • 1. Lessons Learned
  • 2. Practical Applications
  • 3. Decision-Making Frameworks
Governance and Regulatory Standards- Corporate Governance
  • 1. Internal Controls and Audit Functions
  • 2. Risk Committee Structures
  • 3. Board Oversight Responsibilities
- Regulatory Frameworks
  • 1. Local Regulatory Requirements
  • 2. Basel Accords and Global Standards
  • 3. Compliance Reporting
Risk Management Best Practices- Enterprise Risk Management
  • 1. ERM Frameworks
  • 2. Integration Across Departments
  • 3. Risk Appetite and Tolerance
- Operational Risk Management
  • 1. Risk Identification and Assessment
  • 2. Risk Mitigation Strategies
  • 3. Scenario Analysis
- Credit and Market Risk
  • 1. Credit Risk Standards
  • 2. Liquidity Risk Considerations
  • 3. Market Risk Best Practices
PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:

Question 1

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. Ensures that reporting of risk and governance-related matters are produced in a timely and accurate manner
B. Acts as sponsor for risk throughout the organization and ensures that a risk culture is implemented, and maintained
C. 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
D. 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


Question 2

According to the PwC report China Aviation Oil, in order to avoid recording and reporting losses, the company adopted which approach covering up its losses?

A. selling short-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions
B. selling short-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions
C. selling long-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions
D. selling long-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions


Question 3

The retrocession insurance cover was provided by

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


Question 4

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

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


Question 5

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

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


Solutions:

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

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