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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: PRMIA Standards of Best Practice, Conduct and Ethics | 30% | - Code of Conduct and Professional Responsibilities - Whistleblowing and Reporting Violations - Ethical Decision-Making Framework - Conflict of Interest and Disclosure |
| Topic 2: Corporate Governance Principles | 25% | - Transparency and Accountability - PRMIA Governance Principles - Board and Senior Management Oversight - Risk Governance Structure |
| Topic 3: Risk Management Case Studies | 25% | - China Aviation Oil - Long-Term Capital Management (LTCM) - Metallgesellschaft - Northern Rock - Baring Bank - Orange County |
| Topic 4: Risk Management Best Practices | 20% | - Internal Controls and Risk Limits - Enterprise Risk Management Framework - Compliance and Regulatory Alignment |
In the case of National Australia Bank, which of the following was present?
Correct Answer: C 🗳️
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
Correct Answer: D 🗳️
When considering the performance of Northern Rock within its peer group of banks, which of the following is not correct?
Correct Answer: D 🗳️
Metallgesellschaft's retail contracts were
Correct Answer: B 🗳️
Which of the following was not considered to be a positive outcome of the Northern Rock Case Study?
Correct Answer: A 🗳️
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