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PRM Certification – Exam IV: Case Studies; Standards: Governances: 110 (8004) - PRMIA Exam Questions

Last updated on June 20, 2026

97% Exam Compliance
110 Total Questions
1
Question
The failure of Washington Mutual was NOT due to which one of the following?
Options
A A run on its deposits by bank customers
B Using a combination of subprime mortgage loans and credit cards
C It failed due to the poor quality of its assets
D Low lending standards and bad quality acquisitions
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2
Question
The sensitivity analysis required under IFRS would have done what for China Aviation Oil?
Options
A None of the above
B Provided investors and analysts with insight into the dynamics of value changes, and the sensitivity of fair value to the underlying drivers of interest rates, exchange rates, and commodity prices
C Only provided the intrinsic value of its outstanding option positions
D Only provided the time value of its outstanding option position
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3
Question
A risk manager has just completed a risk assessment project. The report has been given to the risk manager's direct supervisor, who refuses to escalate the material issues raised in the report. Further, the direct supervisor edits the report to remove the section describing the material risk, who then submits it to the firm's Executive Committee. According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), which of the following actions is most appropriate:
Options
A Escalation of the issue is against the Code of Conduct because one should respect the administrative structure of the organization
B The risk manager should attempt to resolve the conflict with the direct supervisor, but if that does not work, they should contact the Whistle-Blowing Hotline of the organization. If no such hot-line is in place, they should contact the PRMIA Ethics Committee
C The risk manager has submitted the report to their direct supervisor and their obligation ends at this point, nothing further should be done
D If the risk manager deems it appropriate, he / she should send a copy of the original report to the
CEO
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4
Question
The Chair of the PRMIA Board of Directors may hold the following offices:
Options
A Vice Chair
B Secretary
C Parliamentarian
D Chair only
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5
Question
Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is defined
Options
A using the risk reward profile for each business line in the organization
B using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees
C as commensurate with policies to attract and retain high income / revenue earners
D as being the market norm for similarly situated personnel in competitive organizations
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