PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition 8009 Exam Dumps: Updated Questions & Answers (October 2025)

Vote in Board elections

Attend at least one PRMIA chapter meeting per year

Adhere to the PRMIA Standards of Best Practice, Conduct and Ethics

All of the above

Volume growth at the expense of margin

Excessive reliance on volatile and sophisticated derivatives

A failure to try to protect their clients' interests

Over exposure to the property market

Approach the client about the concern, regardless of what their reaction might be

Respect the client's confidentiality as that takes precedence

Report this conduct to their immediate supervisor

Report the findings immediately to authorities

Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholders

Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructure

Be composed of key business unit representatives

Leave shareholder accountability to senior management who decides strategic direction

To be consistent with regulatory capital measures, 10-day holding periods should be standardized for VaR reporting

Historic simulations are not effective methods of stress testing

Stress tests should incorporate changes in liquidity

Market risk VaR measures should be multiplied by 3 to get to a stress test figure, as long as the VaR model has been back-tested

Only a few months previously it had reported record profits.

The quality of its' assets was never in question.

For many years it was regarded as a star-performer in the financial markets.

Its' loan loss record was poor by industry standards.

Seek advice from a qualified party, being mindful of legal and confidentiality requirements

Modify the interpretation of local rules and regulations to meet the situation

Ignore local rules and regulations

Respect local rules and regulations

I and III only

III only

III and IV only

All of these were key elements of the problems at LTCM

Fortress Re and other insurers

The Fortress Re reinsurers only

The fronting insurance companies

Fortress Re and their reinsurers

LPHI Risk; Business Model; Solvency vs. Liquidity: and Deposit Protection

Corporate Governance; Moral Hazard; Role of Government; and Credit Risk

Deposit Protection; Moral Hazard; Business Model; and LPHI Risk

Business Model; Corporate Governance; Moral Hazard; and Deposit Protection