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PRMIA 8004 exam : PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

8004 Exam Questions
  • Exam Code: 8004
  • Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
  • Updated: Jun 03, 2026
  • Q & A: 112 Questions and Answers
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PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

1. The Basic Knowledge a PPRMIA member should comply with, as stipulated within the PRMIA Standards of Best Practice, Conduct & Ethics, is to

A) maintains and improve their professional competence and strive to maintain and improve the competence of other risk professionals
B) learn from a qualified risk management practitioner
C) only possess the required skills and/or certification to complete the risk assessment / management work at hand
D) only improve their PERSONAL professional competence


2. 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

A) I and II
B) I, II and III
C) I only
D) I, II and IV


3. Every PRMIA chapter is designed to serve the local needs of members, so they often have fairly independent planning structures and ideas. According to the PRMIA Bylaws, Regional Chapters and Regional Directors:

A) Can have their own offices, bylaws and regulations provided they do not conflict with those of PRMIA
B) Can sign contracts on behalf of PRMIA without prior approval from the Board of Directors
C) All of the above
D) Can have meetings that only local members are allowed to attend


4. The Bankers Trust Case Study is about:

A) large losses at the proprietary trading desk
B) reliance on thinly traded derivatives to hedge
C) failure to guard its clients' best interests
D) overexposure to the real estate market


5. Which of the following does NOT relate to the Orange County case?

A) Strategies that are not possible to explain to third parties should not be employed by the risk averse
B) Where there are excess rewards, there must be risks
C) The Know Your Customer rule
D) Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: C

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