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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
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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2
Question
John Smith wants to run for election to the Board of Directors of PRMI
Options
A The backing of 6% of local members
B To go through a screening process conducted by the Nominations Committee
C The backing of three other members
D The backing of five other members and to be serving on at least one PRMIA Committee
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3
Question
According to PRMIA governance principles, boards and audit committees should …
Options
A Be composed of key business unit representatives
B Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructure
C Leave shareholder accountability to senior management who decides strategic direction
D Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholders
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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
Barings failed to recognize that Nick Leeson's losses were increasing because:
Options
A The margin report sent to London did not show the true margin needs
B Leeson ran the front office
C The London office did not ask for any reports
D Leeson hid his trades in a suspense account
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