Online Access Free 8009 Practice Test

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:

• A.Report the findings immediately to authorities
• B.Report this conduct to their immediate supervisor
• C.Approach the client about the concern, regardless of what their reaction might be
• D.Respect the client's confidentiality as that takes precedence

When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should ...

• A.Seek advice from a qualified party, being mindful of legal and confidentiality requirements
• B.Ignore local rules and regulations
• C.Modify the interpretation of local rules and regulations to meet the situation
• D.Respect local rules and regulations

Select the one correct statement relative to Barings Bank.

• A.Proprietary and agency trading were combined and therefore did increase risk.
• B.Proprietary and agency trading were separate and did increase risk.
• C.Proprietary and agency trading were combined and therefore did not increase risk.
• D.Proprietary and agency trading were separate and therefore did not increase risk.

The problems which initiated the crisis at Northern Rock during the summer of 2007 were:

• A.A general lack of confidence in mortgage backed securities associated in large part with developments in the US sub-prime mortgage market, and doubts emerging about the viability of the Northern Rock business model
• B.Large customer withdrawals despite the UK regulator and the UK Treasury giving assurances that the bank was solvent
• C.A depositor run on the bank, following doubts about the viability of the Northern Rock business model
• D.Doubts arising about the viability of the business model which necessitated Bank of England intervention

A PRMIA member is offered a highly paid work assignment on the condition that some aspects of assignment are not to be done according to PRMIA standards.
What should they do?

• A.Accept the assignment, and prior to doing any work, report the conflict of interest to the organization's compliance department
• B.Accept the assignment, produce and deliver two reports according to both standards
• C.Perform the assignment, noting in the final report the standards to which the assignment was done
• D.The PRMIA member should place the integrity of the risk management profession and users of risk management above their own personal interests, and refuse the work