PRMIA
8020
Q1:
For the WorldCom case, what was one of the causes of the failure?
○
A
Risk models that did not reflect loosened underwriting standards of mortgage originators.○
B
The lack of a CRO during the final IPO.○
C
A rapid pace of acquisitions and poor integration of acquired companies.○
D
Unauthorized trading in derivatives.
PRMIA
8020
Q2:
In relation to the template for writing policy documents, which one of the following pairings of requirements is correct? A well designed policy will include:
☐
A
A list of exceptions for the family of board members.☐
C
A list of acceptable fonts and margin types.☐
C
To whom and in what form exceptions should be sought and the general exemptions e.g. areas to which the policy does not apply☐
D
To whom the policy applies to and how an additional management report should be allocated to.
PRMIA
8020
Q3:
Which of the below is accurate about a risk assessment workshop?
○
A
The workshop should be run spontaneously so that proper discussion can take place.○
B
Although workshops will take on their own form; it is best to prepare thoroughly ahead of time.○
C
Risk management should not attend the workshop so that proper discussion can take place.○
D
Compliance experts should not attend the workshop so that proper discussion can take place.
PRMIA
8020
Q4:
When a control is found to be ineffective, which of the following steps should be take next?
○
A
Risks should be re-assessed to determine if there is the appropriate level of control assessment.○
B
An action plan should be designed to close the gap.○
C
The controls should be re-assessed during the next cycle to determine if they are still ineffective.○
D
Risks should be re-assessed to determine if there can be an exception for the level of control assessment.
PRMIA
8020
Q5:
What are the roles of business versus risk management in developing and implementing risk assessments?
○
A
Risk management, in its role as second line of defense, performs the risk assessment process from beginning to end. There is no business line involvement.○
B
The business owns the risk assessment process, while risk management develops the framework, helps facilitate the process, and provides supervision and oversight.○
C
Business owns the risk assessment process so risk management does not play a role in the process.○
D
Business management's role in the risk assessment process should be confined to oversight.