Free PRMIA 8004 Exam Dumps Questions & Answers

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

Finite insurance is reinsurance which

• A.  transfers the total risk at the usual reinsurance price
• B.  transfers the total risk at less cost than traditional reinsurance
• C.  transfers only a limited amount of risk at less cost than traditional reinsurance
• D.  transfers only a limited amount of risk at the usual reinsurance price

When describing the reasons for the collapse of China Aviation Oil, which of the following was not cited?

• A.  Loss generating positions were rolled over by selling options on larger positions to generate cash premiums' to settle existing position losses
• B.  Senior management in China were aware of the positions but did not understand the complexities of risk managing them
• C.  No properly defined risk management policies in place and general lack of oversight by senior management
• D.  Time value was not taken into account during the contract valuation process

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

• A.  comply with the higher standard under all circumstances
• B.  use their best judgment
• C.  refer the matter to their supervisor
• D.  abide by the applicable laws, rules, and regulations of PRMIA and any government and/or regulatory bodies

What was the most important loss for Bankers Trust?

• A.  Loss of market share due to their licenses being revoked
• B.  Time spent on legal proceedings in courts
• C.  Loss of its' reputation due to actions seen as detrimental to their clients
• D.  Money due to unfavourable market moves