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Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?
Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?A . Ensure globally accepted standards are adhered to at all costsB . Respect local customsC . Respect local laws and regulationsD . Take responsibility for your...
The problems at WorldCom can best be characterized as related to:
The problems at WorldCom can best be characterized as related to:A . Market RiskB . Credit RiskC . Operational and Regulatory Compliance RiskD . All of the AboveView AnswerAnswer: C
The Fortress Re finite reinsurance model
The Fortress Re finite reinsurance modelA . allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, and as the risks were spread out over time the annual premiums were accounted for as current liabilities on the...
The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?
The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?A . LPHI Risk; Business Model; Solvency vs. Liquidity: and Deposit ProtectionB . Corporate Governance; Moral Hazard; Role of Government; and Credit RiskC . Deposit Protection; Moral Hazard; Business Model; and LPHI RiskD...
Bankgesellschaft Berlin's failures can be best characterised as
Bankgesellschaft Berlin's failures can be best characterised asA . credit risk caused by overexposure to the property marketB . credit risk caused by a diversified portfolio of poor-quality loansC . both A and BD . none of the aboveView AnswerAnswer: A
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?
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 . Internal controls of the organization, and the local regulatorB . Internal...
Which of the following is FALSE?
Which of the following is FALSE?A . Nick Leeson also ran the back office for his trading areaB . Nick Leeson dealt in complex derivatives lacking transparency of pricingC . SIMEX made inquiries to Barings Bank about large margin calls on its positionsD . Nick Leeson claimed to be running...
According to the G-30 Study, the risk management infrastructure's funding must be
According to the G-30 Study, the risk management infrastructure's funding must beA . determined by business-unit leadersB . determined at the Board level with inputs from business unit leadersC . determined at the Board level without influence by business unit leadersD . determined by the regulatorsView AnswerAnswer: C
Barings failed to recognize that Nick Leeson's losses were increasing because:
Barings failed to recognize that Nick Leeson's losses were increasing because:A . Leeson ran the front officeB . The London office did not ask for any reportsC . Leeson hid his trades in a suspense accountD . The margin report sent to London did not show the true margin needsView...
How much of Washington Mutual's assets were funded by customer deposits for the decade ending in 2006?
How much of Washington Mutual's assets were funded by customer deposits for the decade ending in 2006?A . 30%B . 40%C . 50%D . 60%View AnswerAnswer: D
