- Exam Code: 8009
- Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
- Updated: Jun 03, 2026
- Q & A: 112 Questions and Answers
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1. The sensitivity analysis required under IFRS would have done what for China Aviation Oil?
A) Only provided the time value of its outstanding option position
B) Only provided the intrinsic value of its outstanding option positions
C) None of the above
D) Provided investors and analysts with insight into the dynamics of value changes, and the sensitivity of fair value to the underlying drivers of interest rates, exchange rates, and commodity prices
2. Which of the following was NOT a factor in the Long Term Capital Management case?
A) Changes/breakdowns in historical correlations
B) Unwinding of liquid positions at the beginning of major losses
C) Inadequate separation of front and back offices
D) Model risk
3. The Risk Management Infrastructure of an organization must:
I. To the extent possible, avoid silos of control and oversight
II. Have budgets set by the business unit leaders
III. Actively provide ongoing professional development for risk management staff and require them to be committed to standards of best practice, conduct and ethics in their work IV. Provide general risk management and related corporate governance training for employees of the organization as a Whole
A) I, III and IV only
B) I and III only
C) I only
D) All of these are expected of the Risk Management Infrastructure
4. 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) Report the findings immediately to authorities
B) Report this conduct to their immediate supervisor
C) Respect the client's confidentiality as that takes precedence
D) Approach the client about the concern, regardless of what their reaction might be
5. What was the most important loss for Bankers Trust?
A) Loss of market share due to their licenses being revoked
B) Loss of its' reputation due to actions seen as detrimental to their clients
C) Money due to unfavourable market moves
D) Time spent on legal proceedings in courts
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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