A PRMIA member is offered a highly paid work assignment on the condition that some aspects of assignment are not to be done according to PRMIA standards. What should they do?A . Perform the assignment, noting in the final report the standards to which the assignment was doneB . Accept the assignment, produce and...Continue reading
TMFI’s internal procedures and management wereA . fully aware of the uninsured risks Fortress Re were takingB . absolutely unaware of their uninsured liabilitiesC . aware that they had some uninsured liabilities but thought they had enough capital to withstand any uninsured lossesD . None of the above View Answer Answer: B...
Select the one correct statement relative to Barings Bank.A . Proprietary and agency trading were combined and therefore did not increase risk.B . Proprietary and agency trading were separate and therefore did not increase risk.C . Proprietary and agency trading were combined and therefore did increase risk.D . Proprietary and agency trading were separate...Continue reading
As a result of the US government’s intervention, which of the following is true?A . The cost of borrowing for Fannie Mae and Freddie Mac should decline because the government will be standing behind their debts and the buying and selling of mortgage debt will continueB . The cost of borrowing for house buyers...Continue reading
Which of the following regarding Orange County is FALSE?A . Bob Citron engaged in risky strategies to benefit personallyB . Bob Citron tried to "ride the yield curve"C . Bob Citron heavily leveraged his positions using reposD . Citron’s losses were eventually exposed by massive margin calls View Answer Answer: A...
The Financial Accounting and Reporting Infrastructure of any organization must: I. Accurately represent the corporation’s current and known financial condition in a timely manner II. Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose III. Provide a detailed description of the Risk Management Infrastructure in the...Continue reading
When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should …A . Seek advice from a qualified party, being mindful of legal and confidentiality requirementsB . Modify the interpretation of local rules and regulations to meet the situationC . Ignore local rules and regulationsD...Continue reading
Which of the following are PRMIA Governance Principles? I. Sufficiency of Key Resources and Process II. State of the Art Risk Management Technology III. Ongoing Education and Discernment IV. Sufficiency of Key CompetenciesA . I, II and IV onlyB . I and II onlyC . I, III and IV onlyD . All of these...Continue reading
The key people involved in the application of good governance and risk management must: I. be trustworthy II. be honest III. be approved by the local regulator IV. treat others fairly at all timesA . I, II, and III onlyB . III onlyC . I, II, and IV onlyD . I, II, III and...Continue reading
John Smith wants to run for election to the Board of Directors of PRMIA. To be nominated, he needs: A. The backing of three other members B. To go through a screening process conducted by the Nominations Committee C. The backing of 6% of local members D. The backing of five other members and...Continue reading