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| Section | Objectives |
|---|---|
| Best Practices in Risk Management | - Risk identification and assessment processes - Risk monitoring and reporting - Enterprise risk management implementation |
| Risk Management Standards | - Global risk management frameworks - Regulatory and industry standards |
| Ethics in Risk Management | - Professional ethics and conduct standards - Ethical decision-making in financial risk scenarios - Conflict of interest management |
| Governance | - Internal controls and compliance systems - Board responsibilities and oversight - Corporate governance structures |
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) I, II and III only
C) I, II and IV only
D) All of these are expectations of the Organization as a Whole
2. Zheng Zhu wants to open a new PRMIA Chapter in Wuhan, China. He can do this if:
A) At least 100 members live within 50 miles
B) A local business sponsors the chapter
C) Approved by the Board of Directors
D) All of the above
3. When Fannie Mae and Freddie Mac were taken under US government conservatorship, which of the following was not included within their operating mandate?
A) The US government will buy mortgage-backed securities in the open market as needed
B) There was a 2 year limit to the conservatorship
C) Fannie Mae and Freddie Mac will continue to buy home loans from banks to repackage them as mortgage-backed securities
D) The US government will provide capital as needed in return for preferred shares in the companies
4. The retrocession insurance cover was provided by
A) The Fortress Re reinsurers only
B) Fortress Re and other insurers
C) The fronting insurance companies
D) Fortress Re and their reinsurers
5. Metallgesellschaft's retail contracts were
A) unhedged
B) fully hedged using exchange-traded futures of the same maturities as the retail contracts
C) hedged using exchange-traded futures with shorter maturities than the retail contracts
D) hedged using exchange-traded futures with longer maturities than the retail contracts
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: C |
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