PRMIA 8004 Exam Practice Test Instant Access

Question 1

The key people involved in the application of good governance and risk management must:

I be trustworthy

II be honest

III be approved by the local regulator

IV treat others fairly at all times

AI, II, and III only

BIII only

CI, II, and IV only

DI, II, III and IV above

Answer : C

Question 2

Corporate Governance ...

AEliminates risk to the greatest extent possible

BIs defined as the assembled knowledge and wisdom of the collective stakeholders in the organization, set to maximize shareholder value

CIs defined as business decision making predicated on a belief in potential rewards, balanced with the knowledge, understanding and appreciation of the risk taken to pursue those potential rewards

DIs defined as that which is best practiced within an enterprise risk management framework, guided by the PRMIA Standards of Best Practice, Conduct and Ethics above all else

Answer : C

Question 3

As a PRMIA member, you have certain responsibilities. Among these are the requirement(s) to:

AVote in Board elections

BAttend at least one PRMIA chapter meeting per year

CAdhere to the PRMIA Standards of Best Practice, Conduct and Ethics

DAll of the above

Answer : C

Question 4

The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:

AAll PRMIA Fellow Members

BThe Regional Directors

CThe Blue Ribbon Advisory Panel

DA two-thirds affirmative vote of all members

Answer : B

Question 5

With a PRMIA member's need to reconcile their internal and external responsibility to perform their work in an independent and appropriate fiduciary manner, which of the following options must be taken into consideration when performing risk management duties?

AInternal controls of the organization, and the local regulator

BInternal controls, and the expectations of stakeholders, shareholders, and the general public

CThe local regulator, internal controls, and shareholders

DOnly the internal controls and compliance standards

Answer : B

Question 6

When supervising others, a PRMIA member must comply with

APRMIA Standards

Bthe standards of the organization where the work is being performed

Chis / her established personal standards of work approved in previous work situations

Dlocal regulatory authority standards which may be less onerous than PRMIA standards

Answer : A

Question 7

The Basic Knowledge a PPRMIA member should comply with, as stipulated within the PRMIA Standards of Best Practice, Conduct & Ethics, is to

Aonly improve their PERSONAL professional competence

Bmaintains and improve their professional competence and strive to maintain and improve the competence of other risk professionals

Conly possess the required skills and/or certification to complete the risk assessment / management work at hand

Dlearn from a qualified risk management practitioner

Answer : B

PRMIA Case Studies; Standards: Governance, Best Practices and Ethics Exam Practice Test