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

Question 5

PRMIA Governance Principles

must be adhered to by all PRMIA member organizations

is a set of recommendations based on research and best practice

must be adhered to by all PRM charter holders

must be adhered to by all financial firms that are PRMIA members

Question 6

The problems at Bankgesellschaft Berlin can best be characterized as failures related to:

Market Risk

Credit Risk

Operational Risk

Both B and C

Question 7

When considering the performance of Northern Rock within its peer group of banks, which of the following is not correct?

Only a few months previously it had reported record profits.

The quality of its' assets was never in question.

For many years it was regarded as a star-performer in the financial markets.

Its' loan loss record was poor by industry standards.

Question 8

Which of the following does NOT relate to the Orange County case?

Where there are excess rewards, there must be risks

The Know Your Customer rule

Strategies that are not possible to explain to third parties should not be employed by the risk averse

Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps