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Exam Code: 8004
Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
Updated: Jul 23, 2026
Q & A: 112 Questions and Answers
8004 Free Demo download
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: PRMIA Standards of Best Practice, Conduct and Ethics | 30% | - Professional integrity and accountability - Code of professional conduct - Ethical decision-making framework - Compliance with laws and regulations |
| Topic 2: PRMIA Principles of Good Governance | 20% | - Risk appetite and accountability - Board and senior management responsibilities - Transparency and disclosure - Risk governance frameworks |
| Topic 3: PRMIA Case Studies | 50% | - Risk management lessons learned - Root cause identification - Application of risk principles to scenarios - Historical risk failure analysis |
1. Which of the following was NOT a factor in the National Australia Bank case?
A) Money laundering using foreign exchange trades for political leaders
B) Rogue traders
C) Improper or insufficient Board-level communication regarding the importance of risk management and oversight
D) Inadequate back office procedures
2. When supervising others, a PRMIA member must comply with
A) local regulatory authority standards which may be less onerous than PRMIA standards
B) the standards of the organization where the work is being performed
C) his / her established personal standards of work approved in previous work situations
D) PRMIA Standards
3. PwC concluded that the accounting policy adopted by China Aviation Oil was incorrect because it
A) only took into account the time value of the option (which includes recognizing the time left to maturity of the option, the volatility of the spot price of the underlying commodity, interest rates and other factors)
B) used neither the intrinsic value nor the time value
C) only regarded the intrinsic value (i.e. the difference between the strike price and the forward price of the underlying commodity) as the fair value of its options
D) took into account both the intrinsic value and the time value
4. What was the most important loss for Bankers Trust?
A) Money due to unfavourable market moves
B) Time spent on legal proceedings in courts
C) Loss of market share due to their licenses being revoked
D) Loss of its' reputation due to actions seen as detrimental to their clients
5. The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:
A) The Blue Ribbon Advisory Panel
B) All PRMIA Fellow Members
C) The Regional Directors
D) A two-thirds affirmative vote of all members
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: C |
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