{"id":18437,"date":"2021-01-27T07:28:22","date_gmt":"2021-01-27T07:28:22","guid":{"rendered":"https:\/\/www.dumpsbase.com\/freedumps\/?p=18437"},"modified":"2021-01-27T07:28:31","modified_gmt":"2021-01-27T07:28:31","slug":"professional-risk-manager-prm-designation-8004-dumps-questions","status":"publish","type":"post","link":"https:\/\/www.dumpsbase.com\/freedumps\/professional-risk-manager-prm-designation-8004-dumps-questions.html","title":{"rendered":"Professional Risk Manager (PRM) Designation 8004 Dumps Questions"},"content":{"rendered":"\n<p>2011 PRM Certification &#8211; Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics 8004 exam dumps have been released. DumpsBase has Professional Risk Manager (PRM) Designation 8004 Dumps Questions to ensure that you can pass 8004 exam successfully. Currently, we have 110 practice exam questions and answers in DumpsBase 8004 dumps. You can check 8004 free dumps before getting Professional Risk Manager (PRM) Designation 8004 Dumps Questions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Professional Risk Manager (PRM) Designation 8004 Free Dumps<\/h2>\n\n\n\n<script>\n\t  window.fbAsyncInit = function() {\n\t    FB.init({\n\t      appId            : '622169541470367',\n\t      autoLogAppEvents : true,\n\t      xfbml            : true,\n\t      version          : 'v3.1'\n\t    });\n\t  };\n\t\n\t  (function(d, s, id){\n\t     var js, fjs = d.getElementsByTagName(s)[0];\n\t     if (d.getElementById(id)) {return;}\n\t     js = d.createElement(s); js.id = id;\n\t     js.src = \"https:\/\/connect.facebook.net\/en_US\/sdk.js\";\n\t     fjs.parentNode.insertBefore(js, fjs);\n\t   }(document, 'script', 'facebook-jssdk'));\n\t<\/script><script type=\"text\/javascript\" >\ndocument.addEventListener(\"DOMContentLoaded\", function(event) { \nif(!window.jQuery) alert(\"The important jQuery library is not properly loaded in your site. Your WordPress theme is probably missing the essential wp_head() call. You can switch to another theme and you will see that the plugin works fine and this notice disappears. If you are still not sure what to do you can contact us for help.\");\n});\n<\/script>  \n  \n<div  id=\"watupro_quiz\" class=\"quiz-area single-page-quiz\">\n<p id=\"submittingExam4968\" style=\"display:none;text-align:center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\"><\/p>\n\n<div class=\"watupro-exam-description\" id=\"description-quiz-4968\"><\/div>\n\n<form action=\"\" method=\"post\" class=\"quiz-form\" id=\"quiz-4968\"  enctype=\"multipart\/form-data\" >\n<div class='watu-question ' id='question-1' style=';'><div id='questionWrap-1'  class='   watupro-question-id-159076'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>1. <\/span>What was the main risk scenario on the Metallgesellschaft trading strategy?<\/div><input type='hidden' name='question_id[]' id='qID_1' value='159076' \/><input type='hidden' id='answerType159076' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159076[]' id='answer-id-645169' class='answer   answerof-159076 ' value='645169'   \/><label for='answer-id-645169' id='answer-label-645169' class=' answer'><span>Realized losses on short-term contracts against unrealized gains on the long-run contract<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159076[]' id='answer-id-645170' class='answer   answerof-159076 ' value='645170'   \/><label for='answer-id-645170' id='answer-label-645170' class=' answer'><span>The final price of the underlying being higher than the initial price<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159076[]' id='answer-id-645171' class='answer   answerof-159076 ' value='645171'   \/><label for='answer-id-645171' id='answer-label-645171' class=' answer'><span>The initial price of the underlying being higher than the final price<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159076[]' id='answer-id-645172' class='answer   answerof-159076 ' value='645172'   \/><label for='answer-id-645172' id='answer-label-645172' class=' answer'><span>The short-term price of the underlying being higher than the long-run contract<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-2' style=';'><div id='questionWrap-2'  class='   watupro-question-id-159077'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>2. <\/span>Which of the following is part of the Group of 30 Report's market risk and stress testing recommendations?<\/div><input type='hidden' name='question_id[]' id='qID_2' value='159077' \/><input type='hidden' id='answerType159077' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159077[]' id='answer-id-645173' class='answer   answerof-159077 ' value='645173'   \/><label for='answer-id-645173' id='answer-label-645173' class=' answer'><span>To be consistent with regulatory capital measures, 10-day holding periods should be standardized for VaR reporting<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159077[]' id='answer-id-645174' class='answer   answerof-159077 ' value='645174'   \/><label for='answer-id-645174' id='answer-label-645174' class=' answer'><span>Historic simulations are not effective methods of stress testing<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159077[]' id='answer-id-645175' class='answer   answerof-159077 ' value='645175'   \/><label for='answer-id-645175' id='answer-label-645175' class=' answer'><span>Stress tests should incorporate changes in liquidity<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159077[]' id='answer-id-645176' class='answer   answerof-159077 ' value='645176'   \/><label for='answer-id-645176' id='answer-label-645176' class=' answer'><span>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<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-3' style=';'><div id='questionWrap-3'  class='   watupro-question-id-159078'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>3. <\/span>A risk manager finds that a client is engaged in a practice that looks like money laundering. <br \/>\r<br>According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:<\/div><input type='hidden' name='question_id[]' id='qID_3' value='159078' \/><input type='hidden' id='answerType159078' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159078[]' id='answer-id-645177' class='answer   answerof-159078 ' value='645177'   \/><label for='answer-id-645177' id='answer-label-645177' class=' answer'><span>Approach the client about the concern, regardless of what their reaction might be<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159078[]' id='answer-id-645178' class='answer   answerof-159078 ' value='645178'   \/><label for='answer-id-645178' id='answer-label-645178' class=' answer'><span>Respect the client's confidentiality as that takes precedence<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159078[]' id='answer-id-645179' class='answer   answerof-159078 ' value='645179'   \/><label for='answer-id-645179' id='answer-label-645179' class=' answer'><span>Report this conduct to their immediate supervisor<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159078[]' id='answer-id-645180' class='answer   answerof-159078 ' value='645180'   \/><label for='answer-id-645180' id='answer-label-645180' class=' answer'><span>Report the findings immediately to authorities<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-4' style=';'><div id='questionWrap-4'  class='   watupro-question-id-159079'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>4. <\/span>The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?<\/div><input type='hidden' name='question_id[]' id='qID_4' value='159079' \/><input type='hidden' id='answerType159079' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159079[]' id='answer-id-645181' class='answer   answerof-159079 ' value='645181'   \/><label for='answer-id-645181' id='answer-label-645181' class=' answer'><span>LPHI Risk; Business Model; Solvency vs. Liquidity: and Deposit Protection<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159079[]' id='answer-id-645182' class='answer   answerof-159079 ' value='645182'   \/><label for='answer-id-645182' id='answer-label-645182' class=' answer'><span>Corporate Governance; Moral Hazard; Role of Government; and Credit Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159079[]' id='answer-id-645183' class='answer   answerof-159079 ' value='645183'   \/><label for='answer-id-645183' id='answer-label-645183' class=' answer'><span>Deposit Protection; Moral Hazard; Business Model; and LPHI Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159079[]' id='answer-id-645184' class='answer   answerof-159079 ' value='645184'   \/><label for='answer-id-645184' id='answer-label-645184' class=' answer'><span>Business Model; Corporate Governance; Moral Hazard; and Deposit Protection<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-5' style=';'><div id='questionWrap-5'  class='   watupro-question-id-159080'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>5. <\/span>For the sentence <br \/>\r<br>&quot;The organization shall encourage all employees to keep abreast of the latest developments in their particular areas of expertise, through ____________, _____________, and _____________ and shall make adequate resources available to enable this to occur,&quot; <br \/>\r<br>Choose the correct combinations of words from the following options:<\/div><input type='hidden' name='question_id[]' id='qID_5' value='159080' \/><input type='hidden' id='answerType159080' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159080[]' id='answer-id-645185' class='answer   answerof-159080 ' value='645185'   \/><label for='answer-id-645185' id='answer-label-645185' class=' answer'><span>courses, conferences, journals<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159080[]' id='answer-id-645186' class='answer   answerof-159080 ' value='645186'   \/><label for='answer-id-645186' id='answer-label-645186' class=' answer'><span>conferences, discussion groups, blog sites<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159080[]' id='answer-id-645187' class='answer   answerof-159080 ' value='645187'   \/><label for='answer-id-645187' id='answer-label-645187' class=' answer'><span>courses, educational certification, journals<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159080[]' id='answer-id-645188' class='answer   answerof-159080 ' value='645188'   \/><label for='answer-id-645188' id='answer-label-645188' class=' answer'><span>journals, courses, compliance mandates<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-6' style=';'><div id='questionWrap-6'  class='   watupro-question-id-159081'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>6. <\/span>Which of the following are PRMIA Governance Principles? <br \/>\r<br>I. Sufficiency of Key Resources and Process <br \/>\r<br>II. State of the Art Risk Management Technology <br \/>\r<br>III. Ongoing Education and Discernment <br \/>\r<br>IV. Sufficiency of Key Competencies<\/div><input type='hidden' name='question_id[]' id='qID_6' value='159081' \/><input type='hidden' id='answerType159081' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159081[]' id='answer-id-645189' class='answer   answerof-159081 ' value='645189'   \/><label for='answer-id-645189' id='answer-label-645189' class=' answer'><span>I, II and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159081[]' id='answer-id-645190' class='answer   answerof-159081 ' value='645190'   \/><label for='answer-id-645190' id='answer-label-645190' class=' answer'><span>I and II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159081[]' id='answer-id-645191' class='answer   answerof-159081 ' value='645191'   \/><label for='answer-id-645191' id='answer-label-645191' class=' answer'><span>I, III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159081[]' id='answer-id-645192' class='answer   answerof-159081 ' value='645192'   \/><label for='answer-id-645192' id='answer-label-645192' class=' answer'><span>All of these are PRMIA Governance Principles<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-7' style=';'><div id='questionWrap-7'  class='   watupro-question-id-159082'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>7. <\/span>Which of the following regarding Orange County is FALSE?<\/div><input type='hidden' name='question_id[]' id='qID_7' value='159082' \/><input type='hidden' id='answerType159082' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159082[]' id='answer-id-645193' class='answer   answerof-159082 ' value='645193'   \/><label for='answer-id-645193' id='answer-label-645193' class=' answer'><span>Bob Citron engaged in risky strategies to benefit personally<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159082[]' id='answer-id-645194' class='answer   answerof-159082 ' value='645194'   \/><label for='answer-id-645194' id='answer-label-645194' class=' answer'><span>Bob Citron tried to &quot;ride the yield curve&quot;<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159082[]' id='answer-id-645195' class='answer   answerof-159082 ' value='645195'   \/><label for='answer-id-645195' id='answer-label-645195' class=' answer'><span>Bob Citron heavily leveraged his positions using repos<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159082[]' id='answer-id-645196' class='answer   answerof-159082 ' value='645196'   \/><label for='answer-id-645196' id='answer-label-645196' class=' answer'><span>Citron's losses were eventually exposed by massive margin calls<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-8' style=';'><div id='questionWrap-8'  class='   watupro-question-id-159083'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>8. <\/span>Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?<\/div><input type='hidden' name='question_id[]' id='qID_8' value='159083' \/><input type='hidden' id='answerType159083' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159083[]' id='answer-id-645197' class='answer   answerof-159083 ' value='645197'   \/><label for='answer-id-645197' id='answer-label-645197' class=' answer'><span>Ensure globally accepted standards are adhered to at all costs<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159083[]' id='answer-id-645198' class='answer   answerof-159083 ' value='645198'   \/><label for='answer-id-645198' id='answer-label-645198' class=' answer'><span>Respect local customs<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159083[]' id='answer-id-645199' class='answer   answerof-159083 ' value='645199'   \/><label for='answer-id-645199' id='answer-label-645199' class=' answer'><span>Respect local laws and regulations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159083[]' id='answer-id-645200' class='answer   answerof-159083 ' value='645200'   \/><label for='answer-id-645200' id='answer-label-645200' class=' answer'><span>Take responsibility for your work<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-9' style=';'><div id='questionWrap-9'  class='   watupro-question-id-159084'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>9. <\/span>Barings failed to recognize that Nick Leeson's losses were increasing because:<\/div><input type='hidden' name='question_id[]' id='qID_9' value='159084' \/><input type='hidden' id='answerType159084' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159084[]' id='answer-id-645201' class='answer   answerof-159084 ' value='645201'   \/><label for='answer-id-645201' id='answer-label-645201' class=' answer'><span>Leeson ran the front office<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159084[]' id='answer-id-645202' class='answer   answerof-159084 ' value='645202'   \/><label for='answer-id-645202' id='answer-label-645202' class=' answer'><span>The London office did not ask for any reports<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159084[]' id='answer-id-645203' class='answer   answerof-159084 ' value='645203'   \/><label for='answer-id-645203' id='answer-label-645203' class=' answer'><span>Leeson hid his trades in a suspense account<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159084[]' id='answer-id-645204' class='answer   answerof-159084 ' value='645204'   \/><label for='answer-id-645204' id='answer-label-645204' class=' answer'><span>The margin report sent to London did not show the true margin needs<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-10' style=';'><div id='questionWrap-10'  class='   watupro-question-id-159085'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>10. <\/span>Mary Jones wants the Bylaws of PRMIA to be changed so that people can't join PRMIA unless they meet a set of criteria she has devised with her colleagues. <br \/>\r<br>She can do this by getting which of the following approvals:<\/div><input type='hidden' name='question_id[]' id='qID_10' value='159085' \/><input type='hidden' id='answerType159085' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159085[]' id='answer-id-645205' class='answer   answerof-159085 ' value='645205'   \/><label for='answer-id-645205' id='answer-label-645205' class=' answer'><span>The Board of Directors, but only if the Blue Ribbon Panel affirms the change<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159085[]' id='answer-id-645206' class='answer   answerof-159085 ' value='645206'   \/><label for='answer-id-645206' id='answer-label-645206' class=' answer'><span>The Board of Directors and a majority of the Members<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159085[]' id='answer-id-645207' class='answer   answerof-159085 ' value='645207'   \/><label for='answer-id-645207' id='answer-label-645207' class=' answer'><span>The Board of Directors alone<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159085[]' id='answer-id-645208' class='answer   answerof-159085 ' value='645208'   \/><label for='answer-id-645208' id='answer-label-645208' class=' answer'><span>34 of all Members<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-11' style=';'><div id='questionWrap-11'  class='   watupro-question-id-159086'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>11. <\/span>According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:<\/div><input type='hidden' name='question_id[]' id='qID_11' value='159086' \/><input type='hidden' id='answerType159086' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159086[]' id='answer-id-645209' class='answer   answerof-159086 ' value='645209'   \/><label for='answer-id-645209' id='answer-label-645209' class=' answer'><span>Gives an accurate result in most cases<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159086[]' id='answer-id-645210' class='answer   answerof-159086 ' value='645210'   \/><label for='answer-id-645210' id='answer-label-645210' class=' answer'><span>Captures portfolio effects but not tenor differences<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159086[]' id='answer-id-645211' class='answer   answerof-159086 ' value='645211'   \/><label for='answer-id-645211' id='answer-label-645211' class=' answer'><span>Can easily reflect the impact of netting<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159086[]' id='answer-id-645212' class='answer   answerof-159086 ' value='645212'   \/><label for='answer-id-645212' id='answer-label-645212' class=' answer'><span>Overstates exposure in most cases<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-12' style=';'><div id='questionWrap-12'  class='   watupro-question-id-159087'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>12. <\/span>When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should \u2026<\/div><input type='hidden' name='question_id[]' id='qID_12' value='159087' \/><input type='hidden' id='answerType159087' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159087[]' id='answer-id-645213' class='answer   answerof-159087 ' value='645213'   \/><label for='answer-id-645213' id='answer-label-645213' class=' answer'><span>Seek advice from a qualified party, being mindful of legal and confidentiality requirements<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159087[]' id='answer-id-645214' class='answer   answerof-159087 ' value='645214'   \/><label for='answer-id-645214' id='answer-label-645214' class=' answer'><span>Modify the interpretation of local rules and regulations to meet the situation<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159087[]' id='answer-id-645215' class='answer   answerof-159087 ' value='645215'   \/><label for='answer-id-645215' id='answer-label-645215' class=' answer'><span>Ignore local rules and regulations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159087[]' id='answer-id-645216' class='answer   answerof-159087 ' value='645216'   \/><label for='answer-id-645216' id='answer-label-645216' class=' answer'><span>Respect local rules and regulations<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-13' style=';'><div id='questionWrap-13'  class='   watupro-question-id-159088'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>13. <\/span>The Chief Risk Officer is responsible for the management of the Risk Management Infrastructure, and as such helps the Board define, and then implements throughout the organization, the risk appetite of the organization. <br \/>\r<br>Which of the following is also the responsibility of the Chief Risk Officer?<\/div><input type='hidden' name='question_id[]' id='qID_13' value='159088' \/><input type='hidden' id='answerType159088' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159088[]' id='answer-id-645217' class='answer   answerof-159088 ' value='645217'   \/><label for='answer-id-645217' id='answer-label-645217' class=' answer'><span>Maintaining appropriate assurance measures to ensure that the Governance and Risk framework of the organization is effective, and, if any shortcomings are discovered, to escalate these to the Board so that remedial action can be taken in an appropriate and timely manner<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159088[]' id='answer-id-645218' class='answer   answerof-159088 ' value='645218'   \/><label for='answer-id-645218' id='answer-label-645218' class=' answer'><span>ensuring that all employees understand the rules and regulations (both internal and external) with which they must comply and the implications, for them and for the organization, of non-compliance<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159088[]' id='answer-id-645219' class='answer   answerof-159088 ' value='645219'   \/><label for='answer-id-645219' id='answer-label-645219' class=' answer'><span>Ensures that reporting of risk and governance-related matters are produced in a timely and accurate manner<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159088[]' id='answer-id-645220' class='answer   answerof-159088 ' value='645220'   \/><label for='answer-id-645220' id='answer-label-645220' class=' answer'><span>Acts as sponsor for risk throughout the organization and ensures that a risk culture is implemented, and maintained<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-14' style=';'><div id='questionWrap-14'  class='   watupro-question-id-159089'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>14. <\/span>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. <br \/>\r<br>According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), this was acceptable behavior if the following conditions were met: <br \/>\r<br>I. The risk manager disclosed the lack of knowledge about convertible bonds <br \/>\r<br>II. The methodology employed is disclosed and explained <br \/>\r<br>III. The report was just to be used for analysis and not in practice <br \/>\r<br>IV. The risk manager was sure of his\/her understanding of the paper found on the web<\/div><input type='hidden' name='question_id[]' id='qID_14' value='159089' \/><input type='hidden' id='answerType159089' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159089[]' id='answer-id-645221' class='answer   answerof-159089 ' value='645221'   \/><label for='answer-id-645221' id='answer-label-645221' class=' answer'><span>I and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159089[]' id='answer-id-645222' class='answer   answerof-159089 ' value='645222'   \/><label for='answer-id-645222' id='answer-label-645222' class=' answer'><span>I, II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159089[]' id='answer-id-645223' class='answer   answerof-159089 ' value='645223'   \/><label for='answer-id-645223' id='answer-label-645223' class=' answer'><span>I, II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159089[]' id='answer-id-645224' class='answer   answerof-159089 ' value='645224'   \/><label for='answer-id-645224' id='answer-label-645224' class=' answer'><span>I only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-15' style=';'><div id='questionWrap-15'  class='   watupro-question-id-159090'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>15. <\/span>Which items below were at the core of the problems at Bankgesellschaft Berlin?<\/div><input type='hidden' name='question_id[]' id='qID_15' value='159090' \/><input type='hidden' id='answerType159090' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159090[]' id='answer-id-645225' class='answer   answerof-159090 ' value='645225'   \/><label for='answer-id-645225' id='answer-label-645225' class=' answer'><span>Political corruption and poor management<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159090[]' id='answer-id-645226' class='answer   answerof-159090 ' value='645226'   \/><label for='answer-id-645226' id='answer-label-645226' class=' answer'><span>Over exposure to the property market<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159090[]' id='answer-id-645227' class='answer   answerof-159090 ' value='645227'   \/><label for='answer-id-645227' id='answer-label-645227' class=' answer'><span>Rash guarantees given to investors in property linked funds<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159090[]' id='answer-id-645228' class='answer   answerof-159090 ' value='645228'   \/><label for='answer-id-645228' id='answer-label-645228' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-16' style=';'><div id='questionWrap-16'  class='   watupro-question-id-159091'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>16. <\/span>The problems at WorldCom can best be characterized as related to:<\/div><input type='hidden' name='question_id[]' id='qID_16' value='159091' \/><input type='hidden' id='answerType159091' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159091[]' id='answer-id-645229' class='answer   answerof-159091 ' value='645229'   \/><label for='answer-id-645229' id='answer-label-645229' class=' answer'><span>Market Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159091[]' id='answer-id-645230' class='answer   answerof-159091 ' value='645230'   \/><label for='answer-id-645230' id='answer-label-645230' class=' answer'><span>Credit Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159091[]' id='answer-id-645231' class='answer   answerof-159091 ' value='645231'   \/><label for='answer-id-645231' id='answer-label-645231' class=' answer'><span>Operational and Regulatory Compliance Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159091[]' id='answer-id-645232' class='answer   answerof-159091 ' value='645232'   \/><label for='answer-id-645232' id='answer-label-645232' class=' answer'><span>All of the Above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-17' style=';'><div id='questionWrap-17'  class='   watupro-question-id-159092'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>17. <\/span>The key people involved in the application of good governance and risk management must: <br \/>\r<br>I. be trustworthy <br \/>\r<br>II. be honest <br \/>\r<br>III. be approved by the local regulator <br \/>\r<br>IV. treat others fairly at all times<\/div><input type='hidden' name='question_id[]' id='qID_17' value='159092' \/><input type='hidden' id='answerType159092' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159092[]' id='answer-id-645233' class='answer   answerof-159092 ' value='645233'   \/><label for='answer-id-645233' id='answer-label-645233' class=' answer'><span>I, II, and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159092[]' id='answer-id-645234' class='answer   answerof-159092 ' value='645234'   \/><label for='answer-id-645234' id='answer-label-645234' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159092[]' id='answer-id-645235' class='answer   answerof-159092 ' value='645235'   \/><label for='answer-id-645235' id='answer-label-645235' class=' answer'><span>I, II, and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159092[]' id='answer-id-645236' class='answer   answerof-159092 ' value='645236'   \/><label for='answer-id-645236' id='answer-label-645236' class=' answer'><span>I, II, III and IV above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-18' style=';'><div id='questionWrap-18'  class='   watupro-question-id-159093'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>18. <\/span>As LTCM started to have major losses, it compounded its problems by doing what?<\/div><input type='hidden' name='question_id[]' id='qID_18' value='159093' \/><input type='hidden' id='answerType159093' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159093[]' id='answer-id-645237' class='answer   answerof-159093 ' value='645237'   \/><label for='answer-id-645237' id='answer-label-645237' class=' answer'><span>Trying to borrow more money from major money centre banks<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159093[]' id='answer-id-645238' class='answer   answerof-159093 ' value='645238'   \/><label for='answer-id-645238' id='answer-label-645238' class=' answer'><span>Issuing Subordinated Debt<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159093[]' id='answer-id-645239' class='answer   answerof-159093 ' value='645239'   \/><label for='answer-id-645239' id='answer-label-645239' class=' answer'><span>Returning capital to the general partners before others<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159093[]' id='answer-id-645240' class='answer   answerof-159093 ' value='645240'   \/><label for='answer-id-645240' id='answer-label-645240' class=' answer'><span>Unwinding its' more liquid trades thereby creating more liquidity risk overall<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-19' style=';'><div id='questionWrap-19'  class='   watupro-question-id-159094'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>19. <\/span>Washington Mutual's acquisition of Long Beach Financial changed its business model and increased its credit loss profile because<\/div><input type='hidden' name='question_id[]' id='qID_19' value='159094' \/><input type='hidden' id='answerType159094' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159094[]' id='answer-id-645241' class='answer   answerof-159094 ' value='645241'   \/><label for='answer-id-645241' id='answer-label-645241' class=' answer'><span>The resulting loss rate for Washington Mutual was more than 3 times higher than other mortgage lenders tracked by the FDIC<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159094[]' id='answer-id-645242' class='answer   answerof-159094 ' value='645242'   \/><label for='answer-id-645242' id='answer-label-645242' class=' answer'><span>the two banks were focussed in different markets<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159094[]' id='answer-id-645243' class='answer   answerof-159094 ' value='645243'   \/><label for='answer-id-645243' id='answer-label-645243' class=' answer'><span>Long Beach Financial had losses which it hadn't realized at the time of the takeover<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159094[]' id='answer-id-645244' class='answer   answerof-159094 ' value='645244'   \/><label for='answer-id-645244' id='answer-label-645244' class=' answer'><span>Of a general deterioration of credit quality generally<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-20' style=';'><div id='questionWrap-20'  class='   watupro-question-id-159095'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>20. <\/span>Every PRMIA chapter is designed to serve the local needs of members, so they often have fairly independent planning structures and ideas. <br \/>\r<br>According to the PRMIA Bylaws, Regional Chapters and Regional Directors:<\/div><input type='hidden' name='question_id[]' id='qID_20' value='159095' \/><input type='hidden' id='answerType159095' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159095[]' id='answer-id-645245' class='answer   answerof-159095 ' value='645245'   \/><label for='answer-id-645245' id='answer-label-645245' class=' answer'><span>Can have their own offices, bylaws and regulations provided they do not conflict with those of PRMIA<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159095[]' id='answer-id-645246' class='answer   answerof-159095 ' value='645246'   \/><label for='answer-id-645246' id='answer-label-645246' class=' answer'><span>Can have meetings that only local members are allowed to attend<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159095[]' id='answer-id-645247' class='answer   answerof-159095 ' value='645247'   \/><label for='answer-id-645247' id='answer-label-645247' class=' answer'><span>Can sign contracts on behalf of PRMIA without prior approval from the Board of Directors<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159095[]' id='answer-id-645248' class='answer   answerof-159095 ' value='645248'   \/><label for='answer-id-645248' id='answer-label-645248' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-21' style=';'><div id='questionWrap-21'  class='   watupro-question-id-159096'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>21. <\/span>John Smith wants to run for election to the Board of Directors of PRMIA. <br \/>\r<br>To be nominated, he needs:<\/div><input type='hidden' name='question_id[]' id='qID_21' value='159096' \/><input type='hidden' id='answerType159096' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159096[]' id='answer-id-645249' class='answer   answerof-159096 ' value='645249'   \/><label for='answer-id-645249' id='answer-label-645249' class=' answer'><span>The backing of three other members<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159096[]' id='answer-id-645250' class='answer   answerof-159096 ' value='645250'   \/><label for='answer-id-645250' id='answer-label-645250' class=' answer'><span>To go through a screening process conducted by the Nominations Committee<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159096[]' id='answer-id-645251' class='answer   answerof-159096 ' value='645251'   \/><label for='answer-id-645251' id='answer-label-645251' class=' answer'><span>The backing of 6% of local members<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159096[]' id='answer-id-645252' class='answer   answerof-159096 ' value='645252'   \/><label for='answer-id-645252' id='answer-label-645252' class=' answer'><span>The backing of five other members and to be serving on at least one PRMIA Committee<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-22' style=';'><div id='questionWrap-22'  class='   watupro-question-id-159097'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>22. <\/span>The Fortress Re finite reinsurance model<\/div><input type='hidden' name='question_id[]' id='qID_22' value='159097' \/><input type='hidden' id='answerType159097' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159097[]' id='answer-id-645253' class='answer   answerof-159097 ' value='645253'   \/><label for='answer-id-645253' id='answer-label-645253' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, and as the risks were spread out over time the annual premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159097[]' id='answer-id-645254' class='answer   answerof-159097 ' value='645254'   \/><label for='answer-id-645254' id='answer-label-645254' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid annual premiums to cover these policies, and as the risks were spread out over the year the annual premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159097[]' id='answer-id-645255' class='answer   answerof-159097 ' value='645255'   \/><label for='answer-id-645255' id='answer-label-645255' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, and as the risks were spread out over time the future premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159097[]' id='answer-id-645256' class='answer   answerof-159097 ' value='645256'   \/><label for='answer-id-645256' id='answer-label-645256' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, but as the risks were spread out over time the future premiums were not accounted for as current liabilities on the books of the pool members, thus giving a false impression of profitability<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-23' style=';'><div id='questionWrap-23'  class='   watupro-question-id-159098'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>23. <\/span>The Financial Accounting and Reporting Infrastructure of any organization must: <br \/>\r<br>I. Accurately represent the corporation's current and known financial condition in a timely manner <br \/>\r<br>II. Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose <br \/>\r<br>III. Provide a detailed description of the Risk Management Infrastructure in the organization's Annual Report to Shareholders <br \/>\r<br>IV. Provide an auditable Annual Statement of Compliance with the Board's publicly stated Standards of Corporate Governance to the Board and Audit Committee<\/div><input type='hidden' name='question_id[]' id='qID_23' value='159098' \/><input type='hidden' id='answerType159098' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159098[]' id='answer-id-645257' class='answer   answerof-159098 ' value='645257'   \/><label for='answer-id-645257' id='answer-label-645257' class=' answer'><span>I, II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159098[]' id='answer-id-645258' class='answer   answerof-159098 ' value='645258'   \/><label for='answer-id-645258' id='answer-label-645258' class=' answer'><span>I, III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159098[]' id='answer-id-645259' class='answer   answerof-159098 ' value='645259'   \/><label for='answer-id-645259' id='answer-label-645259' class=' answer'><span>I and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159098[]' id='answer-id-645260' class='answer   answerof-159098 ' value='645260'   \/><label for='answer-id-645260' id='answer-label-645260' class=' answer'><span>All of these are expected of the Financial Accounting and Reporting Infrastructure<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-24' style=';'><div id='questionWrap-24'  class='   watupro-question-id-159099'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>24. <\/span>The Q4 2003 trading strategy of China Aviation Oil was<\/div><input type='hidden' name='question_id[]' id='qID_24' value='159099' \/><input type='hidden' id='answerType159099' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159099[]' id='answer-id-645261' class='answer   answerof-159099 ' value='645261'   \/><label for='answer-id-645261' id='answer-label-645261' class=' answer'><span>to buy puts and sell calls<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159099[]' id='answer-id-645262' class='answer   answerof-159099 ' value='645262'   \/><label for='answer-id-645262' id='answer-label-645262' class=' answer'><span>to buy calls and sell puts<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159099[]' id='answer-id-645263' class='answer   answerof-159099 ' value='645263'   \/><label for='answer-id-645263' id='answer-label-645263' class=' answer'><span>to sell puts and buy calls<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159099[]' id='answer-id-645264' class='answer   answerof-159099 ' value='645264'   \/><label for='answer-id-645264' id='answer-label-645264' class=' answer'><span>to sell calls and buy puts<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-25' style=';'><div id='questionWrap-25'  class='   watupro-question-id-159100'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>25. <\/span>Which of the following was NOT a factor in the National Australia Bank case?<\/div><input type='hidden' name='question_id[]' id='qID_25' value='159100' \/><input type='hidden' id='answerType159100' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159100[]' id='answer-id-645265' class='answer   answerof-159100 ' value='645265'   \/><label for='answer-id-645265' id='answer-label-645265' class=' answer'><span>Rogue traders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159100[]' id='answer-id-645266' class='answer   answerof-159100 ' value='645266'   \/><label for='answer-id-645266' id='answer-label-645266' class=' answer'><span>Improper or insufficient Board-level communication regarding the importance of risk management and oversight<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159100[]' id='answer-id-645267' class='answer   answerof-159100 ' value='645267'   \/><label for='answer-id-645267' id='answer-label-645267' class=' answer'><span>Inadequate back office procedures<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159100[]' id='answer-id-645268' class='answer   answerof-159100 ' value='645268'   \/><label for='answer-id-645268' id='answer-label-645268' class=' answer'><span>Money laundering using foreign exchange trades for political leaders<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-26' style=';'><div id='questionWrap-26'  class='   watupro-question-id-159101'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>26. <\/span>Select the one correct statement relative to Barings Bank.<\/div><input type='hidden' name='question_id[]' id='qID_26' value='159101' \/><input type='hidden' id='answerType159101' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159101[]' id='answer-id-645269' class='answer   answerof-159101 ' value='645269'   \/><label for='answer-id-645269' id='answer-label-645269' class=' answer'><span>Proprietary and agency trading were combined and therefore did not increase risk.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159101[]' id='answer-id-645270' class='answer   answerof-159101 ' value='645270'   \/><label for='answer-id-645270' id='answer-label-645270' class=' answer'><span>Proprietary and agency trading were separate and therefore did not increase risk.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159101[]' id='answer-id-645271' class='answer   answerof-159101 ' value='645271'   \/><label for='answer-id-645271' id='answer-label-645271' class=' answer'><span>Proprietary and agency trading were combined and therefore did increase risk.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159101[]' id='answer-id-645272' class='answer   answerof-159101 ' value='645272'   \/><label for='answer-id-645272' id='answer-label-645272' class=' answer'><span>Proprietary and agency trading were separate and did increase risk.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-27' style=';'><div id='questionWrap-27'  class='   watupro-question-id-159102'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>27. <\/span>According to PRMIA governance principles, boards and audit committees should \u2026<\/div><input type='hidden' name='question_id[]' id='qID_27' value='159102' \/><input type='hidden' id='answerType159102' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159102[]' id='answer-id-645273' class='answer   answerof-159102 ' value='645273'   \/><label for='answer-id-645273' id='answer-label-645273' class=' answer'><span>Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159102[]' id='answer-id-645274' class='answer   answerof-159102 ' value='645274'   \/><label for='answer-id-645274' id='answer-label-645274' class=' answer'><span>Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructure<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159102[]' id='answer-id-645275' class='answer   answerof-159102 ' value='645275'   \/><label for='answer-id-645275' id='answer-label-645275' class=' answer'><span>Be composed of key business unit representatives<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159102[]' id='answer-id-645276' class='answer   answerof-159102 ' value='645276'   \/><label for='answer-id-645276' id='answer-label-645276' class=' answer'><span>Leave shareholder accountability to senior management who decides strategic direction<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-28' style=';'><div id='questionWrap-28'  class='   watupro-question-id-159103'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>28. <\/span>According to the Northern Rock Case Study, what is Forced Insolvency?<\/div><input type='hidden' name='question_id[]' id='qID_28' value='159103' \/><input type='hidden' id='answerType159103' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159103[]' id='answer-id-645277' class='answer   answerof-159103 ' value='645277'   \/><label for='answer-id-645277' id='answer-label-645277' class=' answer'><span>The bank is insolvent in that the current value of its assets (measured at book value) is less than the value of its liabilities; thus even if the bank were to liquidate all of its assets it would not be able to repay all depositors and other creditors<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159103[]' id='answer-id-645278' class='answer   answerof-159103 ' value='645278'   \/><label for='answer-id-645278' id='answer-label-645278' class=' answer'><span>The bank is legally solvent but if, because it cannot fund its operations, it is forced to liquidate assets it could do so only at less than nominal values (fire sale) and this would make it legally insolvent (value of assets falls below those of liabilities)<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159103[]' id='answer-id-645279' class='answer   answerof-159103 ' value='645279'   \/><label for='answer-id-645279' id='answer-label-645279' class=' answer'><span>The bank is legally solvent but its current funding costs (which are likely to continue) exceed the average rate of return on its assets and hence it would soon become insolvent as it would be making losses and would eventually exhaust its equity capital<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159103[]' id='answer-id-645280' class='answer   answerof-159103 ' value='645280'   \/><label for='answer-id-645280' id='answer-label-645280' class=' answer'><span>The bank is solvent in that the current value of its assets (measured at book value) is more than the value of its liabilities; so even if the bank were to liquidate all of its assets it would be able to repay all depositors and other creditors<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-29' style=';'><div id='questionWrap-29'  class='   watupro-question-id-159104'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>29. <\/span>Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is defined<\/div><input type='hidden' name='question_id[]' id='qID_29' value='159104' \/><input type='hidden' id='answerType159104' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159104[]' id='answer-id-645281' class='answer   answerof-159104 ' value='645281'   \/><label for='answer-id-645281' id='answer-label-645281' class=' answer'><span>as being the market norm for similarly situated personnel in competitive organizations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159104[]' id='answer-id-645282' class='answer   answerof-159104 ' value='645282'   \/><label for='answer-id-645282' id='answer-label-645282' class=' answer'><span>using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159104[]' id='answer-id-645283' class='answer   answerof-159104 ' value='645283'   \/><label for='answer-id-645283' id='answer-label-645283' class=' answer'><span>using the risk reward profile for each business line in the organization<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159104[]' id='answer-id-645284' class='answer   answerof-159104 ' value='645284'   \/><label for='answer-id-645284' id='answer-label-645284' class=' answer'><span>as commensurate with policies to attract and retain high income \/ revenue earners<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-30' style=';'><div id='questionWrap-30'  class='   watupro-question-id-159105'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>30. <\/span>Bankgesellschaft Berlin's failures can be best characterised as<\/div><input type='hidden' name='question_id[]' id='qID_30' value='159105' \/><input type='hidden' id='answerType159105' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159105[]' id='answer-id-645285' class='answer   answerof-159105 ' value='645285'   \/><label for='answer-id-645285' id='answer-label-645285' class=' answer'><span>credit risk caused by overexposure to the property market<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159105[]' id='answer-id-645286' class='answer   answerof-159105 ' value='645286'   \/><label for='answer-id-645286' id='answer-label-645286' class=' answer'><span>credit risk caused by a diversified portfolio of poor-quality loans<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159105[]' id='answer-id-645287' class='answer   answerof-159105 ' value='645287'   \/><label for='answer-id-645287' id='answer-label-645287' class=' answer'><span>both A and B<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159105[]' id='answer-id-645288' class='answer   answerof-159105 ' value='645288'   \/><label for='answer-id-645288' id='answer-label-645288' class=' answer'><span>none of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-31' style=';'><div id='questionWrap-31'  class='   watupro-question-id-159106'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>31. <\/span>Which of the following was the key contributory risk factor to the problems at LTCM in the summer of 1998? <br \/>\r<br>I. Model Risk <br \/>\r<br>II. Lack of Transparency <br \/>\r<br>III. Breakdown of Historical Correlations <br \/>\r<br>IV. Over Regulation by Federal Regulators<\/div><input type='hidden' name='question_id[]' id='qID_31' value='159106' \/><input type='hidden' id='answerType159106' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159106[]' id='answer-id-645289' class='answer   answerof-159106 ' value='645289'   \/><label for='answer-id-645289' id='answer-label-645289' class=' answer'><span>I and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159106[]' id='answer-id-645290' class='answer   answerof-159106 ' value='645290'   \/><label for='answer-id-645290' id='answer-label-645290' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159106[]' id='answer-id-645291' class='answer   answerof-159106 ' value='645291'   \/><label for='answer-id-645291' id='answer-label-645291' class=' answer'><span>III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159106[]' id='answer-id-645292' class='answer   answerof-159106 ' value='645292'   \/><label for='answer-id-645292' id='answer-label-645292' class=' answer'><span>All of these were key elements of the problems at LTCM<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-32' style=';'><div id='questionWrap-32'  class='   watupro-question-id-159107'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>32. <\/span>With a PRMIA member's need to reconcile their internal and external responsibility to perform their work in an independent and appropriate fiduciary manner, which of the following options must be taken into consideration when performing risk management duties?<\/div><input type='hidden' name='question_id[]' id='qID_32' value='159107' \/><input type='hidden' id='answerType159107' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159107[]' id='answer-id-645293' class='answer   answerof-159107 ' value='645293'   \/><label for='answer-id-645293' id='answer-label-645293' class=' answer'><span>Internal controls of the organization, and the local regulator<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159107[]' id='answer-id-645294' class='answer   answerof-159107 ' value='645294'   \/><label for='answer-id-645294' id='answer-label-645294' class=' answer'><span>Internal controls, and the expectations of stakeholders, shareholders, and the general public<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159107[]' id='answer-id-645295' class='answer   answerof-159107 ' value='645295'   \/><label for='answer-id-645295' id='answer-label-645295' class=' answer'><span>The local regulator, internal controls, and shareholders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159107[]' id='answer-id-645296' class='answer   answerof-159107 ' value='645296'   \/><label for='answer-id-645296' id='answer-label-645296' class=' answer'><span>Only the internal controls and compliance standards<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-33' style=';'><div id='questionWrap-33'  class='   watupro-question-id-159108'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>33. <\/span>Which of the following was not received by Northern Rock as official support from the UK banking and government authorities?<\/div><input type='hidden' name='question_id[]' id='qID_33' value='159108' \/><input type='hidden' id='answerType159108' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159108[]' id='answer-id-645297' class='answer   answerof-159108 ' value='645297'   \/><label for='answer-id-645297' id='answer-label-645297' class=' answer'><span>A covert money market support operation designed to cover up the difficulties Northern Rock was facing<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159108[]' id='answer-id-645298' class='answer   answerof-159108 ' value='645298'   \/><label for='answer-id-645298' id='answer-label-645298' class=' answer'><span>The Bank of England's role as Lender-Of-Last-resort was activated at a penalty interest rate of 150 basis points above the Bank Rate<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159108[]' id='answer-id-645299' class='answer   answerof-159108 ' value='645299'   \/><label for='answer-id-645299' id='answer-label-645299' class=' answer'><span>The UK government offered to guarantee all existing and new retail deposits, and to most other creditors<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159108[]' id='answer-id-645300' class='answer   answerof-159108 ' value='645300'   \/><label for='answer-id-645300' id='answer-label-645300' class=' answer'><span>The Bank of England provided an additional unlimited facility secured on the collateral of all Northern Rock assets<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-34' style=';'><div id='questionWrap-34'  class='   watupro-question-id-159109'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>34. <\/span>TMFI's internal procedures and management were<\/div><input type='hidden' name='question_id[]' id='qID_34' value='159109' \/><input type='hidden' id='answerType159109' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159109[]' id='answer-id-645301' class='answer   answerof-159109 ' value='645301'   \/><label for='answer-id-645301' id='answer-label-645301' class=' answer'><span>fully aware of the uninsured risks Fortress Re were taking<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159109[]' id='answer-id-645302' class='answer   answerof-159109 ' value='645302'   \/><label for='answer-id-645302' id='answer-label-645302' class=' answer'><span>absolutely unaware of their uninsured liabilities<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159109[]' id='answer-id-645303' class='answer   answerof-159109 ' value='645303'   \/><label for='answer-id-645303' id='answer-label-645303' class=' answer'><span>aware that they had some uninsured liabilities but thought they had enough capital to withstand any uninsured losses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159109[]' id='answer-id-645304' class='answer   answerof-159109 ' value='645304'   \/><label for='answer-id-645304' id='answer-label-645304' class=' answer'><span>None of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-35' style=';'><div id='questionWrap-35'  class='   watupro-question-id-159110'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>35. <\/span>As a result of the US government's intervention, which of the following is true?<\/div><input type='hidden' name='question_id[]' id='qID_35' value='159110' \/><input type='hidden' id='answerType159110' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159110[]' id='answer-id-645305' class='answer   answerof-159110 ' value='645305'   \/><label for='answer-id-645305' id='answer-label-645305' class=' answer'><span>The cost of borrowing for Fannie Mae and Freddie Mac should decline because the government will be standing behind their debts and the buying and selling of mortgage debt will continue<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159110[]' id='answer-id-645306' class='answer   answerof-159110 ' value='645306'   \/><label for='answer-id-645306' id='answer-label-645306' class=' answer'><span>The cost of borrowing for house buyers will rise because of the risk premium now built into the cost of such a government guarantee<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159110[]' id='answer-id-645307' class='answer   answerof-159110 ' value='645307'   \/><label for='answer-id-645307' id='answer-label-645307' class=' answer'><span>The systemic risks still remain in the housing market because it increases the US government's debt<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159110[]' id='answer-id-645308' class='answer   answerof-159110 ' value='645308'   \/><label for='answer-id-645308' id='answer-label-645308' class=' answer'><span>Foreign Central Banks will continue to sell their holdings of Fannie Mae and Freddie Mac securities<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-36' style=';'><div id='questionWrap-36'  class='   watupro-question-id-159111'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>36. <\/span>How much of Washington Mutual's assets were funded by customer deposits for the decade ending in 2006?<\/div><input type='hidden' name='question_id[]' id='qID_36' value='159111' \/><input type='hidden' id='answerType159111' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159111[]' id='answer-id-645309' class='answer   answerof-159111 ' value='645309'   \/><label for='answer-id-645309' id='answer-label-645309' class=' answer'><span>30%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159111[]' id='answer-id-645310' class='answer   answerof-159111 ' value='645310'   \/><label for='answer-id-645310' id='answer-label-645310' class=' answer'><span>40%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159111[]' id='answer-id-645311' class='answer   answerof-159111 ' value='645311'   \/><label for='answer-id-645311' id='answer-label-645311' class=' answer'><span>50%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159111[]' id='answer-id-645312' class='answer   answerof-159111 ' value='645312'   \/><label for='answer-id-645312' id='answer-label-645312' class=' answer'><span>60%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-37' style=';'><div id='questionWrap-37'  class='   watupro-question-id-159112'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>37. <\/span>Which of the following is FALSE?<\/div><input type='hidden' name='question_id[]' id='qID_37' value='159112' \/><input type='hidden' id='answerType159112' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159112[]' id='answer-id-645313' class='answer   answerof-159112 ' value='645313'   \/><label for='answer-id-645313' id='answer-label-645313' class=' answer'><span>Nick Leeson also ran the back office for his trading area<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159112[]' id='answer-id-645314' class='answer   answerof-159112 ' value='645314'   \/><label for='answer-id-645314' id='answer-label-645314' class=' answer'><span>Nick Leeson dealt in complex derivatives lacking transparency of pricing<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159112[]' id='answer-id-645315' class='answer   answerof-159112 ' value='645315'   \/><label for='answer-id-645315' id='answer-label-645315' class=' answer'><span>SIMEX made inquiries to Barings Bank about large margin calls on its positions<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159112[]' id='answer-id-645316' class='answer   answerof-159112 ' value='645316'   \/><label for='answer-id-645316' id='answer-label-645316' class=' answer'><span>Nick Leeson claimed to be running an arbitrage book<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-38' style=';'><div id='questionWrap-38'  class='   watupro-question-id-159113'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>38. <\/span>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. <br \/>\r<br>What should they do?<\/div><input type='hidden' name='question_id[]' id='qID_38' value='159113' \/><input type='hidden' id='answerType159113' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159113[]' id='answer-id-645317' class='answer   answerof-159113 ' value='645317'   \/><label for='answer-id-645317' id='answer-label-645317' class=' answer'><span>Perform the assignment, noting in the final report the standards to which the assignment was done<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159113[]' id='answer-id-645318' class='answer   answerof-159113 ' value='645318'   \/><label for='answer-id-645318' id='answer-label-645318' class=' answer'><span>Accept the assignment, produce and deliver two reports according to both standards<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159113[]' id='answer-id-645319' class='answer   answerof-159113 ' value='645319'   \/><label for='answer-id-645319' id='answer-label-645319' class=' answer'><span>Accept the assignment, and prior to doing any work, report the conflict of interest to the organization's compliance department<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159113[]' id='answer-id-645320' class='answer   answerof-159113 ' value='645320'   \/><label for='answer-id-645320' id='answer-label-645320' class=' answer'><span>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<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-39' style=';'><div id='questionWrap-39'  class='   watupro-question-id-159114'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>39. <\/span>When describing the reasons for the collapse of China Aviation Oil, which of the following was not cited?<\/div><input type='hidden' name='question_id[]' id='qID_39' value='159114' \/><input type='hidden' id='answerType159114' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159114[]' id='answer-id-645321' class='answer   answerof-159114 ' value='645321'   \/><label for='answer-id-645321' id='answer-label-645321' class=' answer'><span>No properly defined risk management policies in place and general lack of oversight by senior management<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159114[]' id='answer-id-645322' class='answer   answerof-159114 ' value='645322'   \/><label for='answer-id-645322' id='answer-label-645322' class=' answer'><span>Time value was not taken into account during the contract valuation process<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159114[]' id='answer-id-645323' class='answer   answerof-159114 ' value='645323'   \/><label for='answer-id-645323' id='answer-label-645323' class=' answer'><span>Loss generating positions were rolled over by selling options on larger positions to generate cash premiums' to settle existing position losses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159114[]' id='answer-id-645324' class='answer   answerof-159114 ' value='645324'   \/><label for='answer-id-645324' id='answer-label-645324' class=' answer'><span>Senior management in China were aware of the positions but did not understand the complexities of risk managing them<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-40' style=';'><div id='questionWrap-40'  class='   watupro-question-id-159115'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>40. <\/span>According to the G-30 Study, the risk management infrastructure's funding must be<\/div><input type='hidden' name='question_id[]' id='qID_40' value='159115' \/><input type='hidden' id='answerType159115' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159115[]' id='answer-id-645325' class='answer   answerof-159115 ' value='645325'   \/><label for='answer-id-645325' id='answer-label-645325' class=' answer'><span>determined by business-unit leaders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159115[]' id='answer-id-645326' class='answer   answerof-159115 ' value='645326'   \/><label for='answer-id-645326' id='answer-label-645326' class=' answer'><span>determined at the Board level with inputs from business unit leaders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159115[]' id='answer-id-645327' class='answer   answerof-159115 ' value='645327'   \/><label for='answer-id-645327' id='answer-label-645327' class=' answer'><span>determined at the Board level without influence by business unit leaders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-159115[]' id='answer-id-645328' class='answer   answerof-159115 ' value='645328'   \/><label for='answer-id-645328' id='answer-label-645328' class=' answer'><span>determined by the regulators<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div style='display:none' id='question-41'>\n\t<div class='question-content'>\n\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" 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159102:645273,645274,645275,645276 | 159103:645277,645278,645279,645280 | 159104:645281,645282,645283,645284 | 159105:645285,645286,645287,645288 | 159106:645289,645290,645291,645292 | 159107:645293,645294,645295,645296 | 159108:645297,645298,645299,645300 | 159109:645301,645302,645303,645304 | 159110:645305,645306,645307,645308 | 159111:645309,645310,645311,645312 | 159112:645313,645314,645315,645316 | 159113:645317,645318,645319,645320 | 159114:645321,645322,645323,645324 | 159115:645325,645326,645327,645328\" \/>\n\t<input type=\"hidden\" name=\"no_ajax\" value=\"0\">\t\t\t<\/form>\n\t<p>&nbsp;<\/p>\n<\/div>\n\n<script type=\"text\/javascript\">\n\/\/jQuery(document).ready(function(){\ndocument.addEventListener(\"DOMContentLoaded\", function(event) { \t\nvar question_ids = 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Practices and Ethics 8004 exam dumps have been released. DumpsBase has Professional Risk Manager (PRM) Designation 8004 Dumps Questions to ensure that you can pass 8004 exam successfully. Currently, we have 110 practice exam questions and answers in DumpsBase 8004 dumps. You can check [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11414,11415],"tags":[11408,11409,11410,11411,11412,11413],"class_list":["post-18437","post","type-post","status-publish","format-standard","hentry","category-prima","category-prm-designation","tag-11408","tag-8004-dumps","tag-8004-dumps-questions","tag-8004-exam-dumps","tag-8004-exam-questions","tag-8004-free-dumps"],"_links":{"self":[{"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/posts\/18437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/comments?post=18437"}],"version-history":[{"count":1,"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/posts\/18437\/revisions"}],"predecessor-version":[{"id":18439,"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/posts\/18437\/revisions\/18439"}],"wp:attachment":[{"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/media?parent=18437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/categories?post=18437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dumpsbase.com\/freedumps\/wp-json\/wp\/v2\/tags?post=18437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}