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

8004 Exam Questions
  • Exam Code: 8004
  • Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
  • Updated: May 29, 2026
  • 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. An Organization as a Whole must:
I Provide an environment in which an Escalation Policy can be effective II Commit itself to actual enforcement of corporate governance policies III Provide ongoing education and training to all employees on the role of risk management and corporate governance in the organization IV Publish an external auditor's opinion that the corporation is in compliance with the Board's publicly stated Standards of Corporate Governance

A) I, III and IV only
B) All of these are expectations of the Organization as a Whole
C) I, II and IV only
D) I, II and III only


2. Corporate Governance ...

A) Is defined as the assembled knowledge and wisdom of the collective stakeholders in the organization, set to maximize shareholder value
B) Is defined as business decision making predicated on a belief in potential rewards, balanced with the knowledge, understanding and appreciation of the risk taken to pursue those potential rewards
C) Is defined as that which is best practiced within an enterprise risk management framework, guided by the PRMIA Standards of Best Practice, Conduct and Ethics above all else
D) Eliminates risk to the greatest extent possible


3. How much of Washington Mutual's assets were funded by customer deposits for the decade ending in 2006?

A) 40%
B) 30%
C) 60%
D) 50%


4. Which of the following was a key problem in the Barings Bank case?

A) The different time zones that the office was trading in
B) Having the back office and front office operations under the same person
C) Leeson was executing an arbitrage strategy even though he was not authorized to do so
D) Difference in the contract sizes in the OSE and SIMEX


5. Which US regulatory authority resolved the restructuring of Washington Mutual?

A) Federal Deposit Insurance Corporation
B) None of the above
C) The Federal Reserve Bank
D) The Office of Thrift Supervision


Solutions:

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

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