Free PRMIA 8009 Exam Dumps Questions & Answers

Taisei Fire and Marine Insurance Co

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

Which of the following was NOT a factor in the National Australia Bank case?

• A.  Rogue traders
• B.  Improper or insufficient Board-level communication regarding the importance of risk management and oversight
• C.  Inadequate back office procedures
• D.  Money laundering using foreign exchange trades for political leaders

The Chief Risk Officer is responsible for the management of the Risk Management Infrastructure, and as such helps the Board define, and then implements throughout the organization, the risk appetite of the organization.
Which of the following is also the responsibility of the Chief Risk Officer?

• A.  Acts as sponsor for risk throughout the organization and ensures that a risk culture is implemented, and maintained
• B.  Maintaining appropriate assurance measures to ensure that the Governance and Risk framework of the organization is effective, and, if any shortcomings are discovered, to escalate these to the Board so that remedial action can be taken in an appropriate and timely manner
• C.  Ensures that reporting of risk and governance-related matters are produced in a timely and accurate manner
• D.  ensuring that all employees understand the rules and regulations (both internal and external) with which they must comply and the implications, for them and for the organization, of non-compliance

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

• A.  I only
• B.  I, II and IV
• C.  I and II
• D.  I, II and III

When supervising others, a PRMIA member must comply with

• A.  PRMIA Standards
• B.  his / her established personal standards of work approved in previous work situations
• C.  local regulatory authority standards which may be less onerous than PRMIA standards
• D.  the standards of the organization where the work is being performed