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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: PRMIA Standards of Best Practice, Conduct and Ethics | 30% | - Professional integrity and accountability - Ethical decision-making framework - Compliance with laws and regulations - Code of professional conduct |
| Topic 2: PRMIA Case Studies | 50% | - Risk management lessons learned - Historical risk failure analysis - Root cause identification - Application of risk principles to scenarios |
| Topic 3: PRMIA Principles of Good Governance | 20% | - Board and senior management responsibilities - Transparency and disclosure - Risk governance frameworks - Risk appetite and accountability |
Barings Bank and Orange County have many similarities. Which of the following is NOT a similarity?
Correct Answer: C 🗳️
A risk manager is asked to analyze the credit risk of a convertible bond. The risk manager has never analyzed convertible bonds, but does have significant expertise in credit risk. The risk manager accepts the assignment, finds a paper on the subject through the PRMIA web site and copies the method used there. The risk manager completes the assignment and delivers a report to his or her direct supervisor and the supervisor is quite pleased.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), this was acceptable behavior if the following conditions were met:
I The risk manager disclosed the lack of knowledge about convertible bonds II The methodology employed is disclosed and explained III The report was just to be used for analysis and not in practice IV The risk manager was sure of his/her understanding of the paper found on the web
Correct Answer: B 🗳️
When supervising others, a PRMIA member must comply with
Correct Answer: A 🗳️
Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?
Correct Answer: B 🗳️
According to the Group of 30 Report, option contracts:
Correct Answer: B 🗳️
Viewing page 1 out of 23 pages.
Viewing questions 1-5 out of 112 questions.
Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
PRM Certification - Exam II: Mathematical Foundations of Risk Measurement
Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition
PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
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