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PRMIA 8004

8004

Exam Code: 8004

Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

Updated: Sep 12, 2026

Q & A: 112 Questions and Answers

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8004 exam dumps

PRMIA 8004 Exam Syllabus Topics:

SectionObjectives
Topic 1: Standards & Practices- Bylaws of Professional Risk Managers' International Association, PRMIA
- Group of Thirty Best Practices, Global Derivatives Study Group
- Principles of Good Governance Principles, PRMIA
- Standards of Best Practice, Conduct and Ethics, PRMIA Ethics Committee
Topic 2: Case Studies- Operational Resilience at TSB
- Fannie Mae and Freddie Mac
- Orange County
- FTX
- Metallgesellschaft
- Long Term Capital Management (LTCM)
- Washington Mutual (Wamu)
- WorldCom
- Bankers Trust
- Barings
- Silicon Valley Bank
- Northern Rock
- Lehman Brothers
- American Insurance Group (AIG)
- National Australia Bank (NAB) - FX Options

PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

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. 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
C. Historic simulations are not effective methods of stress testing
D. Stress tests should incorporate changes in liquidity


Question #2
MGRM's losses due to "stacking" started to increase when

A. the oil market went from strong contango to weak contango
B. the oil market went from weak backwardation to strong backwardation
C. the oil market went from contango to backwardation
D. the oil market went from backwardation to contango


Question #3
What was the most important loss for Bankers Trust?

A. Loss of its' reputation due to actions seen as detrimental to their clients
B. Time spent on legal proceedings in courts
C. Money due to unfavourable market moves
D. Loss of market share due to their licenses being revoked


Question #4
Which of the following best characterize the problems that developed at Bankers Trust?

A. Over exposure to the property market
B. A failure to try to protect their clients' interests
C. Excessive reliance on volatile and sophisticated derivatives
D. Volume growth at the expense of margin


Question #5
With a PRMIA member's need to reconcile their internal and external responsibility to perform their work in an independent and appropriate fiduciary manner, which of the following options must be taken into consideration when performing risk management duties?

A. Only the internal controls and compliance standards
B. The local regulator, internal controls, and shareholders
C. Internal controls of the organization, and the local regulator
D. Internal controls, and the expectations of stakeholders, shareholders, and the general public


Solutions:

Question #1
Correct Answer: D
Question #2
Correct Answer: D
Question #3
Correct Answer: A
Question #4
Correct Answer: B
Question #5
Correct Answer: D

8004 Related Exams
8007 - Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
8009 - Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
8002 - PRM Certification - Exam II: Mathematical Foundations of Risk Measurement
8006 - Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition
Related Certifications
PRM Certification
PRMIA Certification
PRM
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