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

1. Zheng Zhu wants to open a new PRMIA Chapter in Wuhan, Chin
a. He can do this if:

A) Approved by the Board of Directors
B) At least 100 members live within 50 miles
C) All of the above
D) A local business sponsors the chapter

2. The Financial Accounting and Reporting Infrastructure of any organization must:
I Accurately represent the corporation's current and known financial condition in a timely manner II Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose III Provide a detailed description of the Risk Management Infrastructure in the organization's Annual Report to Shareholders IV Provide an auditable Annual Statement of Compliance with the Board's publicly stated Standards of Corporate Governance to the Board and Audit Committee

A) I and III only
B) I, II and III only
C) All of these are expected of the Financial Accounting and Reporting Infrastructure
D) I, III and IV only

3. The retrocession insurance cover was provided by

A) Fortress Re and other insurers
B) The Fortress Re reinsurers only
C) The fronting insurance companies
D) Fortress Re and their reinsurers

4. The Chair of the PRMIA Board of Directors may hold the following offices:

A) Chair only
B) Secretary
C) Parliamentarian
D) Vice Chair

5. A risk manager finds that a client is engaged in a practice that looks like money laundering.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:

A) Report this conduct to their immediate supervisor
B) Approach the client about the concern, regardless of what their reaction might be
C) Report the findings immediately to authorities
D) Respect the client's confidentiality as that takes precedence

Solutions: