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PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:
1. When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should ...
A) Ignore local rules and regulations
B) Seek advice from a qualified party, being mindful of legal and confidentiality requirements
C) Respect local rules and regulations
D) Modify the interpretation of local rules and regulations to meet the situation
2. According to the G-30 Study, the risk management infrastructure's funding must be
A) determined by business-unit leaders
B) determined at the Board level without influence by business unit leaders
C) determined at the Board level with inputs from business unit leaders
D) determined by the regulators
3. Finite insurance is reinsurance which
A) transfers only a limited amount of risk at less cost than traditional reinsurance
B) transfers the total risk at the usual reinsurance price
C) transfers only a limited amount of risk at the usual reinsurance price
D) transfers the total risk at less cost than traditional reinsurance
4. The "Renewing the Dream" program signed into law by President George W Bush in 2002 was designed to
A) Recapitalise Fannie Mae and Freddie Mac with US$2.4 billion of additional capital to ensure they weathered the risks associated with any future downturn in the housing markets
B) Provide grants of US$800 million to help home buyers with down-payment and closing costs
C) Allow risky, high-cost loans to be credited towards affordable housing goals
D) Provide tax credits of nearly US$2.4 billion over the next 5 years to investors and builders who developed affordable single-family housing in poor and distressed areas
5. A PRMIA member is offered a highly paid work assignment on the condition that some aspects of assignment are not to be done according to PRMIA standards.
What should they do?
A) Accept the assignment, and prior to doing any work, report the conflict of interest to the organization's compliance department
B) Perform the assignment, noting in the final report the standards to which the assignment was done
C) The PRMIA member should place the integrity of the risk management profession and users of risk management above their own personal interests, and refuse the work
D) Accept the assignment, produce and deliver two reports according to both standards
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: C |




