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

8004 Exam Questions
  • Exam Code: 8004
  • Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
  • Updated: Sep 05, 2025
  • Q & A: 112 Questions and Answers
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PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

1. Taisei Fire and Marine Insurance Co

A) had a full understanding from Fortress Re of the risks in the pool
B) had a full understanding from other members of the pool of the pool's liabilities
C) relied on the information it received from other members of the reinsurance pool to manage its risks
D) relied almost entirely on Fortress Re's management team for information on the risks in its portfolio


2. Which of the following was not considered to be a positive outcome of the Northern Rock Case Study?

A) The original successful business model had not stress tested sufficiently for the incidence of Low Probability, High Impact incidents
B) The reform of the Deposit Protection Scheme because of its internal inconsistencies
C) It emphasised the importance of effective governance arrangements within financial firms
D) The role of the UK government and the possible underwriting of risks by tax-payers, and the general question of Moral Hazard


3. Which of the following best characterize the problems that developed at Bankers Trust?

A) Excessive reliance on volatile and sophisticated derivatives
B) Over exposure to the property market
C) A failure to try to protect their clients' interests
D) Volume growth at the expense of margin


4. As LTCM started to have major losses, it compounded its problems by doing what?

A) Issuing Subordinated Debt
B) Returning capital to the general partners before others
C) Unwinding its' more liquid trades thereby creating more liquidity risk overall
D) Trying to borrow more money from major money centre banks


5. The key people involved in the application of good governance and risk management must:
I be trustworthy
II be honest
III be approved by the local regulator
IV treat others fairly at all times

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


Solutions:

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

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