PRMIA 8004 Exam : PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

  • Exam Code: 8004
  • Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
  • Updated: Sep 14, 2026
  • Q & A: 112 Questions and Answers

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PRMIA 8004 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: PRMIA Standards of Best Practice, Conduct and Ethics30%- Compliance with laws and regulations
- Professional integrity and accountability
- Ethical decision-making framework
- Code of professional conduct
Topic 2: PRMIA Principles of Good Governance20%- Risk governance frameworks
- Risk appetite and accountability
- Transparency and disclosure
- Board and senior management responsibilities
Topic 3: PRMIA Case Studies50%- Application of risk principles to scenarios
- Root cause identification
- Historical risk failure analysis
- Risk management lessons learned

PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

Question #1

For the sentence
"The organization should have at its disposal employees who have adequate _________, ________ and _______ to perform the tasks assigned to them", Choose the correct combination of words from the following options:

  • A. risk appetite, knowledge, expertise
  • B. track record, expertise, skills
  • C. experience, skills, previous successes
  • D. knowledge, skills, expertise
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #2

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. Fannie Mae and Freddie Mac will continue to buy home loans from banks to repackage them as mortgage-backed securities
  • C. There was a 2 year limit to the conservatorship
  • D. The US government will provide capital as needed in return for preferred shares in the companies
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #3

Which of the following was NOT a factor in the National Australia Bank case?

  • A. Inadequate back office procedures
  • B. Improper or insufficient Board-level communication regarding the importance of risk management and oversight
  • C. Money laundering using foreign exchange trades for political leaders
  • D. Rogue traders
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

According to PRMIA governance principles, boards and audit committees should ...

  • A. Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructure
  • B. Be composed of key business unit representatives
  • C. Leave shareholder accountability to senior management who decides strategic direction
  • D. Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholders
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

Which of the following was NOT a factor in the WorldCom collapse?

  • A. Unfair pricing to customers
  • B. Failed corporate governance
  • C. Over stating actual sales
  • D. Accounting abuses
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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