PDF Version DemoPRMIA 8004 Exam Overview:
| Certification Vendor: | Professional Risk Managers' International Association (PRMIA) |
|---|---|
| Exam Name: | PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics |
| Exam Number: | 8004 |
| Exam Duration: | Usually part of PRM Exam 2 structure, ~240 total for exam 2 (individual session details vary by test form) |
| Real Exam Qty: | 110 multiple-choice questions (varies slightly by test version) :contentReference[oaicite:1]{index=1} |
| Available Languages: | English |
| Related Certifications: | PRM (Professional Risk Manager) Designation |
| Exam Price: | See PRMIA official fee schedule (varies by membership status; official site required) :contentReference[oaicite:2]{index=2} |
| Certificate Validity Period: | PRM designation sustainable with continued membership; certificate validity linked to PRM status, not separate expiry |
| Passing Score: | 60% (PRM exam standard) :contentReference[oaicite:0]{index=0} |
| Exam Format: | Case study based questions, Multiple choice |
| Sample Questions: | PRMIA 8004 Sample Questions |
| Exam Way: | Computer-based testing administered through PRMIA testing windows / partner test centers; case studies integrated within multiple-choice format |
| Pre Condition: | Must be enrolled in or progressing toward the PRM designation program; detailed prerequisites and eligibility provided by PRMIA candidate guidebook or official site :contentReference[oaicite:3]{index=3} |
| Official Syllabus URL: | https://www.prmia.org/Public/Public/PRM/Case_Studies_and_Standards.aspx |
PRMIA 8004 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Case Studies | - Barings - FTX - Northern Rock - Orange County - Silicon Valley Bank - Long Term Capital Management (LTCM) - Fannie Mae and Freddie Mac - Operational Resilience at TSB - Bankers Trust - National Australia Bank (NAB) - FX Options - Lehman Brothers - WorldCom - Metallgesellschaft - American Insurance Group (AIG) - Washington Mutual (Wamu) |
| Standards & Practices | - Principles of Good Governance Principles, PRMIA - Standards of Best Practice, Conduct and Ethics, PRMIA Ethics Committee - Bylaws of Professional Risk Managers' International Association, PRMIA - Group of Thirty Best Practices, Global Derivatives Study Group |
PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:
Question 1
Which of the following was not cited within the chain of miscalculations and deferred decisions for the downfall of Fannie Mae and Freddie Mac
A. Lawmakers postponed strenghtening regulatory oversight due to partisan infighting
B. Extreme exposure to foreign currency exposures and losses from non-US$ mortgages
C. Under-management and under-measurement of market and liquidity risk
D. They did not raise enough capital to weather the storm as the housing slump expanded
Question 2
MGRM's losses due to "stacking" started to increase when
A. the oil market went from backwardation to contango
B. the oil market went from weak backwardation to strong backwardation
C. the oil market went from strong contango to weak contango
D. the oil market went from contango to backwardation
Question 3
Which of the following does NOT relate to the Orange County case?
A. Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps
B. The Know Your Customer rule
C. Strategies that are not possible to explain to third parties should not be employed by the risk averse
D. Where there are excess rewards, there must be risks
Question 4
For the sentence
"The organization should have at its disposal employees who have adequate _________, ________ and _______ to perform the tasks assigned to them", Choose the correct combination of words from the following options:
A. track record, expertise, skills
B. experience, skills, previous successes
C. knowledge, skills, expertise
D. risk appetite, knowledge, expertise
Question 5
When describing the reasons for the collapse of China Aviation Oil, which of the following was not cited?
A. No properly defined risk management policies in place and general lack of oversight by senior management
B. Senior management in China were aware of the positions but did not understand the complexities of risk managing them
C. Time value was not taken into account during the contract valuation process
D. Loss generating positions were rolled over by selling options on larger positions to generate cash premiums' to settle existing position losses
Solutions:
| Question 1 Answer: B | Question 2 Answer: A | Question 3 Answer: B | Question 4 Answer: C | Question 5 Answer: B |
We are confident about the products and aim to help you pass with ease. In case of failure, we will provide a no hassle full money back guarantee for the purchasing fee.
1180 Customer Reviews
Quality and ValueITbraindumps Practice Exams are written to the highest standards of technical accuracy, using only certified subject matter experts and published authors for development - no all study materials.
Tested and ApprovedWe are committed to the process of vendor and third party approvals. We believe professionals and executives alike deserve the confidence of quality coverage these authorizations provide.
Easy to PassIf you prepare for the exams using our ITbraindumps testing engine, It is easy to succeed for all certifications in the first attempt. You don't have to deal with all dumps or any free torrent / rapidshare all stuff.
Try Before BuyITbraindumps offers free demo of each product. You can check out the interface, question quality and usability of our practice exams before you decide to buy.