Pass the PRMIA PRM Certification 8009 Questions and answers with ExamsMirror

Eliminates risk to the greatest extent possible

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

Is 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

Is 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

Use separate trading agreements for interest rate derivatives, equity derivatives and foreign exchange transactions.

Use a common trading agreement for interest rate and equity derivatives but a separate agreement for foreign exchange transactions.

Use one trading agreement for foreign exchange forwards and another for foreign exchange options.

Use a single master trading agreement as widely as possible with each counter party.

Only a few months previously it had reported record profits.

The quality of its' assets was never in question.

For many years it was regarded as a star-performer in the financial markets.

Its' loan loss record was poor by industry standards.

Leeson ran the front office

The London office did not ask for any reports

Leeson hid his trades in a suspense account

The margin report sent to London did not show the true margin needs

All PRMIA Fellow Members

The Regional Directors

The Blue Ribbon Advisory Panel

A two-thirds affirmative vote of all members

Internal controls of the organization, and the local regulator

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

The local regulator, internal controls, and shareholders

Only the internal controls and compliance standards

Realized losses on short-term contracts against unrealized gains on the long-run contract

The final price of the underlying being higher than the initial price

The initial price of the underlying being higher than the final price

The short-term price of the underlying being higher than the long-run contract

Dynamic hedging

A stacked hedge

A differential hedge

Nothing because MG Refining & Marketing did not hedge its position

A for-profit corporation

A non-profit corporation

A charitable trust

A non profit corporation with for profit subsidiaries

credit risk caused by overexposure to the property market

credit risk caused by a diversified portfolio of poor-quality loans

both A and B

none of the above