[Jul-2021] Verified PRMIA Exam Dumps with 8009 Exam Study Guide
Best Quality PRMIA 8009 Exam Questions Lead2PassExam Realistic Practice Exams [2021]
NEW QUESTION 11
Which of the following are PRMIA Governance Principles?
I. Sufficiency of Key Resources and Process
II. State of the Art Risk Management Technology
III. Ongoing Education and Discernment
IV. Sufficiency of Key Competencies
- A. I, III and IV only
- B. I and II only
- C. All of these are PRMIA Governance Principles
- D. I, II and IV only
Answer: A
NEW QUESTION 12
The retrocession insurance cover was provided by
- A. Fortress Re and their reinsurers
- B. Fortress Re and other insurers
- C. The fronting insurance companies
- D. The Fortress Re reinsurers only
Answer: D
NEW QUESTION 13
Which of the following are PRMIA Governance Principles?
I. Independence of Key Parties
II. Disclosure and Transparency
III. Internal Validation
IV. Solvency
- A. All are PRMIA Governance Principles
- B. I and II only
- C. I, II and III only
- D. I, II and IV only
Answer: B
NEW QUESTION 14
The Basic Knowledge a PPRMIA member should comply with, as stipulated within the PRMIA Standards of Best Practice, Conduct & Ethics, is to
- A. only improve their PERSONAL professional competence
- B. learn from a qualified risk management practitioner
- C. maintains and improve their professional competence and strive to maintain and improve the competence of other risk professionals
- D. only possess the required skills and/or certification to complete the risk assessment / management work at hand
Answer: C
NEW QUESTION 15
When describing the reasons for the collapse of China Aviation Oil, which of the following was not cited?
- A. Loss generating positions were rolled over by selling options on larger positions to generate cash premiums' to settle existing position losses
- B. No properly defined risk management policies in place and general lack of oversight by senior management
- C. Time value was not taken into account during the contract valuation process
- D. Senior management in China were aware of the positions but did not understand the complexities of risk managing them
Answer: D
NEW QUESTION 16
Washington Mutual's acquisition of Long Beach Financial changed its business model and increased its credit loss profile because
- A. Long Beach Financial had losses which it hadn't realized at the time of the takeover
- B. the two banks were focussed in different markets
- C. The resulting loss rate for Washington Mutual was more than 3 times higher than other mortgage lenders tracked by the FDIC
- D. Of a general deterioration of credit quality generally
Answer: C
NEW QUESTION 17
According to the Group of 30 Report, dealers and end-users are encouraged to:
- A. Use one trading agreement for foreign exchange forwards and another for foreign exchange options.
- B. Use separate trading agreements for interest rate derivatives, equity derivatives and foreign exchange transactions.
- C. Use a single master trading agreement as widely as possible with each counter party.
- D. Use a common trading agreement for interest rate and equity derivatives but a separate agreement for foreign exchange transactions.
Answer: C
NEW QUESTION 18
When Fannie Mae and Freddie Mac were taken under US government conservatorship, which of the following was not included within their operating mandate?
- A. Fannie Mae and Freddie Mac will continue to buy home loans from banks to repackage them as mortgage-backed securities
- B. The US government will provide capital as needed in return for preferred shares in the companies
- C. The US government will buy mortgage-backed securities in the open market as needed
- D. There was a 2 year limit to the conservatorship
Answer: D
NEW QUESTION 19
Which of the following does NOT relate to the Orange County case?
- A. Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps
- B. Strategies that are not possible to explain to third parties should not be employed by the risk averse
- C. The Know Your Customer rule
- D. Where there are excess rewards, there must be risks
Answer: C
NEW QUESTION 20
Which of the following is part of the Group of 30 Report's market risk and stress testing recommendations?
- A. To be consistent with regulatory capital measures, 10-day holding periods should be standardized for VaR reporting
- B. Market risk VaR measures should be multiplied by 3 to get to a stress test figure, as long as the VaR model has been back-tested
- C. Historic simulations are not effective methods of stress testing
- D. Stress tests should incorporate changes in liquidity
Answer: D
NEW QUESTION 21
Taisei Fire and Marine Insurance Co
- A. had a full understanding from other members of the pool of the pool's liabilities
- B. relied on the information it received from other members of the reinsurance pool to manage its risks
- C. had a full understanding from Fortress Re of the risks in the pool
- D. relied almost entirely on Fortress Re's management team for information on the risks in its portfolio
Answer: D
NEW QUESTION 22
Which of the following was a key problem in the Barings Bank case?
- A. The different time zones that the office was trading in
- B. Difference in the contract sizes in the OSE and SIMEX
- C. Leeson was executing an arbitrage strategy even though he was not authorized to do so
- D. Having the back office and front office operations under the same person
Answer: D
NEW QUESTION 23
The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:
- A. The Blue Ribbon Advisory Panel
- B. A two-thirds affirmative vote of all members
- C. All PRMIA Fellow Members
- D. The Regional Directors
Answer: D
NEW QUESTION 24
As a result of the US government's intervention, which of the following is true?
- A. The cost of borrowing for house buyers will rise because of the risk premium now built into the cost of such a government guarantee
- B. Foreign Central Banks will continue to sell their holdings of Fannie Mae and Freddie Mac securities
- C. The cost of borrowing for Fannie Mae and Freddie Mac should decline because the government will be standing behind their debts and the buying and selling of mortgage debt will continue
- D. The systemic risks still remain in the housing market because it increases the US government's debt
Answer: C
NEW QUESTION 25
Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust
- A. did not honour its contractual obligations to pay
- B. sold them derivative products without properly advising them of the relevant risks
- C. hid profits
- D. was involved in accounting fraud
Answer: B
NEW QUESTION 26
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:
- A. The Board of Directors, but only if the Blue Ribbon Panel affirms the change
- B. 34 of all Members
- C. The Board of Directors and a majority of the Members
- D. The Board of Directors alone
Answer: C
NEW QUESTION 27
As LTCM started to have major losses, it compounded its problems by doing what?
- A. Returning capital to the general partners before others
- B. Unwinding its' more liquid trades thereby creating more liquidity risk overall
- C. Issuing Subordinated Debt
- D. Trying to borrow more money from major money centre banks
Answer: B
NEW QUESTION 28
The Chair of the PRMIA Board of Directors may hold the following offices:
- A. Secretary
- B. Vice Chair
- C. Chair only
- D. Parliamentarian
Answer: C
NEW QUESTION 29
......
Authentic Best resources for 8009: https://www.lead2passexam.com/PRMIA/valid-8009-exam-dumps.html