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

  • Exam Code: 8009
  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Updated: Oct 20, 2026
  • Q & A: 112 Questions and Answers

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PRMIA 8009 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: PRMIA Standards of Best Practice, Conduct and Ethics30%- Code of Conduct and Professional Responsibilities
- Whistleblowing and Reporting Violations
- Ethical Decision-Making Framework
- Conflict of Interest and Disclosure
Topic 2: Corporate Governance Principles25%- Transparency and Accountability
- PRMIA Governance Principles
- Board and Senior Management Oversight
- Risk Governance Structure
Topic 3: Risk Management Case Studies25%- China Aviation Oil
- Long-Term Capital Management (LTCM)
- Metallgesellschaft
- Northern Rock
- Baring Bank
- Orange County
Topic 4: Risk Management Best Practices20%- Internal Controls and Risk Limits
- Enterprise Risk Management Framework
- Compliance and Regulatory Alignment

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

Question #1

In the case of National Australia Bank, which of the following was present?

  • A. The Board received risk management information that was incorrect, incomplete or insufficiently detailed
  • B. A window of time between close of day for reporting purposes and back office checking that allowed traders to hide losses using fictitious trades
  • C. Both A and B
  • D. Neither A nor B
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

Boards, including Audit and Risk Committees must:
I. Clearly articulate the corporate risk appetite to senior management
II. Thoroughly review compensation plans of potentially "highly compensated positions" for consistency with corporate risk appetite, competitive market conditions and fiduciary responsibility to shareholders III. Have a single member formally given responsibility for understanding and reporting the effectiveness of the corporation's risk management infrastructure IV. Be fully accountable to shareholders and work to the benefit of public good and financial stability

  • A. I, II and III only
  • B. I and II only
  • C. I, II and IV only
  • D. All of these are responsibilities of Board and Audit Committees
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

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. Only a few months previously it had reported record profits.
  • C. The quality of its' assets was never in question.
  • D. Its' loan loss record was poor by industry standards.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

Metallgesellschaft's retail contracts were

  • A. fully hedged using exchange-traded futures of the same maturities as the retail contracts
  • B. hedged using exchange-traded futures with shorter maturities than the retail contracts
  • C. hedged using exchange-traded futures with longer maturities than the retail contracts
  • D. unhedged
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

Which of the following was not considered to be a positive outcome of the Northern Rock Case Study?

  • A. The original successful business model had not stress tested sufficiently for the incidence of Low Probability, High Impact incidents
  • B. The role of the UK government and the possible underwriting of risks by tax-payers, and the general question of Moral Hazard
  • C. The reform of the Deposit Protection Scheme because of its internal inconsistencies
  • D. It emphasised the importance of effective governance arrangements within financial firms
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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