Which of the following was NOT a factor in the National Australia Bank case?

Which of the following was NOT a factor in the National Australia Bank case?A . Rogue tradersB . Improper or insufficient Board-level communication regarding the importance of risk management and oversightC . Inadequate back office proceduresD . Money laundering using foreign exchange trades for political leadersView AnswerAnswer: D

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Mary Jones wants the Bylaws of PRMIA to be changed so that people can't join PRMIA unless they meet a set of criteria she has devised with her colleagues.

Mary Jones wants the Bylaws of PRMIA to be changed so that people can't join PRMIA unless they meet a set of criteria she has devised with her colleagues. She can do this by getting which of the following approvals:A . The Board of Directors, but only if the Blue...

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A risk manager finds that a client is engaged in a practice that looks like money laundering.

A risk manager finds that a client is engaged in a practice that looks like money laundering. According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:A . Approach the client about the concern, regardless of what their reaction might beB ....

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According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:

According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:A . Gives an accurate result in most casesB . Captures portfolio effects but not tenor differencesC . Can easily reflect the impact of nettingD . Overstates...

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Which of the following is part of the Group of 30 Report's market risk and stress testing recommendations?

Which of the following is part of the Group of 30 Report's market risk and stress testing recommendations?A . To be consistent with regulatory capital measures, 10-day holding periods should be standardized for VaR reportingB . Historic simulations are not effective methods of stress testingC . Stress tests should incorporate...

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What was the main risk scenario on the Metallgesellschaft trading strategy?

What was the main risk scenario on the Metallgesellschaft trading strategy?A . Realized losses on short-term contracts against unrealized gains on the long-run contractB . The final price of the underlying being higher than the initial priceC . The initial price of the underlying being higher than the final priceD...

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According to the Northern Rock Case Study, what is Forced Insolvency?

According to the Northern Rock Case Study, what is Forced Insolvency?A . The bank is insolvent in that the current value of its assets (measured at book value) is less than the value of its liabilities; thus even if the bank were to liquidate all of its assets it would...

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As LTCM started to have major losses, it compounded its problems by doing what?

As LTCM started to have major losses, it compounded its problems by doing what?A . Trying to borrow more money from major money centre banksB . Issuing Subordinated DebtC . Returning capital to the general partners before othersD . Unwinding its' more liquid trades thereby creating more liquidity risk overallView...

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According to PRMIA governance principles, boards and audit committees should …

According to PRMIA governance principles, boards and audit committees should …A . Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholdersB . Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructureC . Be composed of...

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Which of the following was not received by Northern Rock as official support from the UK banking and government authorities?

Which of the following was not received by Northern Rock as official support from the UK banking and government authorities?A . A covert money market support operation designed to cover up the difficulties Northern Rock was facingB . The Bank of England's role as Lender-Of-Last-resort was activated at a penalty...

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