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8009 Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition is now Stable and With Pass Result | Test Your Knowledge for Free

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Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition

Last Update 2 days ago
Total Questions : 110

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Question # 11

Which items below were at the core of the problems at Bankgesellschaft Berlin?

Options:

A.  

Political corruption and poor management

B.  

Over exposure to the property market

C.  

Rash guarantees given to investors in property linked funds

D.  

All of the above

Discussion 0
Question # 12

What is (are) the lesson(s) of the Barings' failure?

Options:

A.  

Incentive plans have risk management implications

B.  

Front and back offices need to be independent

C.  

Large profits can be an indicator of risk

D.  

All of the above

Discussion 0
Question # 13

When supervising others, a PRMIA member must comply with

Options:

A.  

PRMIA Standards

B.  

the standards of the organization where the work is being performed

C.  

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

D.  

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

Discussion 0
Question # 14

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?

Options:

A.  

Internal controls of the organization, and the local regulator

B.  

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

C.  

The local regulator, internal controls, and shareholders

D.  

Only the internal controls and compliance standards

Discussion 0
Question # 15

Which of the following was the key contributory risk factor to the problems at LTCM in the summer of 1998?

I. Model Risk

II. Lack of Transparency

III. Breakdown of Historical Correlations

IV. Over Regulation by Federal Regulators

Options:

A.  

I and III only

B.  

III only

C.  

III and IV only

D.  

All of these were key elements of the problems at LTCM

Discussion 0
Question # 16

Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust

Options:

A.  

sold them derivative products without properly advising them of the relevant risks

B.  

did not honour its contractual obligations to pay

C.  

was involved in accounting fraud

D.  

hid profits

Discussion 0
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