[Q34-Q54] 8004 100% Guarantee Download 8004 Exam PDF Q&A [Oct 21, 2023]

QUESTION 34
Employees shall be remunerated adequately for the roles that they perform, where ‘adequately’ is defined

QUESTION 35
With respect to the Purpose of Professional Standards, in the event of any difference in standards between local laws/rules and those of PRMIA, members must

QUESTION 36
According to PRMIA governance principles, boards and audit committees should …

QUESTION 37
Which of the following does NOT relate to the Orange County case?

QUESTION 38
Which items below were at the core of the problems at Bankgesellschaft Berlin?

QUESTION 39
Unlike the case at Barings Bank, National Australia Bank:

QUESTION 40
Which items below were at the core of the problems at Bankgesellschaft Berlin?

QUESTION 41
Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?

QUESTION 42
The Financial Accounting and Reporting Infrastructure of any organization must:
I.Accurately represent the corporation’s current and known financial condition in a timely manner
II.Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose
III.Provide a detailed description of the Risk Management Infrastructure in the organization’s Annual Report to Shareholders
IV.Provide an auditable Annual Statement of Compliance with the Board’s publicly stated Standards of Corporate Governance to the Board and Audit Committee

QUESTION 43
The early 2003 trading strategy of China Aviation oil was

QUESTION 44
The Basic Knowledge a PPRMIA member should comply with, as stipulated within the PRMIA Standards of Best Practice, Conduct & Ethics, is to

QUESTION 45
The “normal” credit loss profile of Washington Mutual was increased by which of the following?

QUESTION 46
A risk manager is asked to analyze the credit risk of a convertible bond. The risk manager has never analyzed convertible bonds, but does have significant expertise in credit risk. The risk manager accepts the assignment, finds a paper on the subject through the PRMIA web site and copies the method used there. The risk manager completes the assignment and delivers a report to his or her direct supervisor and the supervisor is quite pleased.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), this was acceptable behavior if the following conditions were met:
I.The risk manager disclosed the lack of knowledge about convertible bonds
II.The methodology employed is disclosed and explained
III.The report was just to be used for analysis and not in practice
IV.The risk manager was sure of his/her understanding of the paper found on the web

QUESTION 47
Which of the following is FALSE?

QUESTION 48
How much of Washington Mutual’s assets were funded by customer deposits for the decade ending in 2006?

QUESTION 49
Barings failed to recognize that Nick Leeson’s losses were increasing because:

QUESTION 50
The retrocession insurance cover was provided by

QUESTION 51
The Financial Accounting and Reporting Infrastructure of any organization must:
I Accurately represent the corporation’s current and known financial condition in a timely manner II Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose III Provide a detailed description of the Risk Management Infrastructure in the organization’s Annual Report to Shareholders IV Provide an auditable Annual Statement of Compliance with the Board’s publicly stated Standards of Corporate Governance to the Board and Audit Committee

QUESTION 52
Washington Mutual’s acquisition of Long Beach Financial changed its business model and increased its credit loss profile because

QUESTION 53
Which of the following regarding Orange County is FALSE?

QUESTION 54
What was the main risk scenario on the Metallgesellschaft trading strategy?