The problems in the Orange County case can best be characterized as failures related to:
A risk manager finds that a client is engaged in a practice that looks like money laundering.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:
What is (are) the lesson(s) of the Barings' failure?
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
Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:
I. competitive market conditions
II. ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders
III. ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators
IV. reporting all such personnel to the local regulator
As a PRMIA member, you have certain responsibilities. Among these are the requirement(s) to:
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?
While doing a work assignment, a PRMIA member notices behaviour that is outside the ethical standards of their client organization and reports the matter to their immediate supervisor in the organization (if he or she wasn't the one engaging in such behaviour). The matter is neither progressed nor actioned.
The PRMIA member should:
PRMIA is incorporated as:
The Fortress Re accounting risk transfer procedures
Which of the following are PRMIA Governance Principles?
I. Independence of Key Parties
II. Disclosure and Transparency
III. Internal Validation
IV. Solvency
What was the most important loss for Bankers Trust?
The hedging strategy employed by MG Refining & Marketing has been called:
A VaR model for managing market risk at Barings Bank in London would most likely have:
Which of the following was the key contributory risk factor to the problems at LTCM in the summer of 1998?
I. Model Risk
II. Lack of Transparency
III. Breakdown of Historical Correlations
IV. Over Regulation by Federal Regulators
Mary Jones wants the Bylaws of PRMIA to be changed so that people can't join PRMIA unless they meet a set of criteria she has devised with her colleagues. She can do this by getting which of the following approvals: