• Exam Code: 8004
  • Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
  • Certification Provider: PRMIA
  • Corresponding Certification:PRM
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8004
  • Exam Code: 8004
  • Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
  • Updated: Sep 20, 2026
  • No. of Questions: 112 Questions and Answers
  • Download Limit: Unlimited

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PRMIA 8004 Exam Syllabus Topics:

SectionObjectives
Standards & Practices- Bylaws of Professional Risk Managers' International Association, PRMIA
- Group of Thirty Best Practices, Global Derivatives Study Group
- Standards of Best Practice, Conduct and Ethics, PRMIA Ethics Committee
- Principles of Good Governance Principles, PRMIA
Case Studies- National Australia Bank (NAB) - FX Options
- FTX
- Fannie Mae and Freddie Mac
- Silicon Valley Bank
- Bankers Trust
- WorldCom
- Orange County
- Long Term Capital Management (LTCM)
- Washington Mutual (Wamu)
- Barings
- Lehman Brothers
- Operational Resilience at TSB
- American Insurance Group (AIG)
- Metallgesellschaft
- Northern Rock

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

A risk assessment report generated by a PRMIA member creates an apparent conflict of interest between the PRMIA standards and those of the client organization.
Of the following, which is the correct hierarchy to follow to resolve the conflict?
I The decision of a superior within the organization
II PRMIA Standards
III Guidelines from the regulators in which the organization operates
IV The laws of the country

  • A. I, II, III, and IV
  • B. III, II, IV, and I
  • C. IV, III, II, and I
  • D. II, I, IV, and III
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust

  • A. hid profits
  • B. was involved in accounting fraud
  • C. did not honour its contractual obligations to pay
  • D. sold them derivative products without properly advising them of the relevant risks
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:

  • A. Overstates exposure in most cases
  • B. Captures portfolio effects but not tenor differences
  • C. Can easily reflect the impact of netting
  • D. Gives an accurate result in most cases
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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?

  • A. Internal controls, and the expectations of stakeholders, shareholders, and the general public
  • B. Only the internal controls and compliance standards
  • C. Internal controls of the organization, and the local regulator
  • D. The local regulator, internal controls, and shareholders
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

The problems at Bankers Trust can best be characterized as failures related to:

  • A. All of the Above
  • B. Market Risk
  • C. Operational and Regulatory Compliance Risk
  • D. Credit Risk
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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