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PRMIA 8004 Exam Topics, Blueprint and Syllabus

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

Last Update September 18, 2024
Total Questions : 110

Our PRM Certification 8004 exam questions and answers cover all the topics of the latest PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics exam, See the topics listed below. We also provide PRMIA 8004 exam dumps with accurate exam content to help you prepare for the exam quickly and easily. Additionally, we offer a range of PRMIA 8004 resources to help you understand the topics covered in the exam, such as PRM Certification video tutorials, 8004 study guides, and 8004 practice exams. With these resources, you can develop a better understanding of the topics covered in the exam and be better prepared for success.

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PRMIA 8004 Exam Overview :

Exam Name PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
Exam Code 8004
Actual Exam Duration The duration of the PRMIA 8004 Exam is 2 hours.
What exam is all about PRMIA 8004 is an exam that focuses on the principles of risk management. It is designed to test the knowledge and skills of professionals who work in the field of risk management, including financial risk management, operational risk management, and enterprise risk management. The exam covers topics such as risk identification, risk assessment, risk mitigation, risk monitoring, and risk reporting. It also covers the regulatory environment and the role of risk management in corporate governance. Passing the PRMIA 8004 exam is a requirement for obtaining the Professional Risk Manager (PRM) certification.
Passing Score required The passing score required in the PRMIA 8004 exam is 60%. This means that a candidate must answer at least 60% of the questions correctly to pass the exam and earn the PRMIA certification. The exam consists of 80 multiple-choice questions, and candidates have 2 hours to complete it. The questions cover various topics related to risk management, including financial markets, credit risk, operational risk, and quantitative analysis. Candidates who pass the exam demonstrate their knowledge and skills in risk management and are recognized as experts in the field.
Competency Level required Based on my research, the PRMIA 8004 exam is designed for professionals who have a strong understanding of financial risk management concepts and practices. It is recommended that candidates have at least two years of experience in the field of financial risk management before attempting the exam. Additionally, candidates should have a solid understanding of financial mathematics, statistics, and probability theory. The exam is designed to test the candidate's ability to apply these concepts to real-world scenarios and make informed decisions based on risk analysis. Overall, the competency level required for the PRMIA 8004 exam is considered to be advanced.
Questions Format Based on the previous exam patterns, the PRMIA 8004 exam may have the following types of questions: 1. Multiple-choice questions: These questions will have four or five options, and you will have to choose the correct answer. 2. True/False questions: These questions will have a statement, and you will have to determine whether it is true or false. 3. Fill in the blanks: These questions will have a sentence with a blank space, and you will have to fill in the blank with the correct word or phrase. 4. Matching questions: These questions will have two columns, and you will have to match the items in one column with the items in the other column. 5. Scenario-based questions: These questions will present a scenario, and you will have to analyze the situation and answer the questions based on the given information. It is important to note that the exam format and types of questions may vary from year to year, and it is recommended to check the official PRMIA website for the latest updates.
Delivery of Exam PRMIA 8004 exam is an online proctored exam that can be taken from anywhere with a stable internet connection. The exam is delivered through the PRMIA testing platform, which is accessible through a web browser. The exam consists of 80 multiple-choice questions and has a time limit of 2 hours. The exam is designed to test the candidate's knowledge and understanding of the principles of market risk management.
Language offered Based on my research, the PRMIA 8004 exam is focused on financial risk management and may include technical language related to financial markets, risk assessment, and quantitative analysis. It is likely that the exam will require a strong understanding of financial terminology and concepts.
Cost of exam You can visit the official PRMIA website or contact their customer support for the latest pricing details.
Target Audience The PRMIA 8004 exam is designed for professionals who are interested in risk management and want to enhance their knowledge and skills in this field. The target audience for this exam includes: 1. Risk managers: Professionals who are responsible for identifying, assessing, and managing risks in their organizations. 2. Financial analysts: Individuals who analyze financial data and provide insights to support decision-making. 3. Investment bankers: Professionals who advise clients on financial transactions, such as mergers and acquisitions, and help them manage risks associated with these transactions. 4. Traders: Individuals who buy and sell financial instruments, such as stocks, bonds, and derivatives, and need to understand the risks associated with these transactions. 5. Compliance officers: Professionals who ensure that their organizations comply with regulatory requirements and manage risks associated with non-compliance. 6. Auditors: Individuals who review and evaluate the effectiveness of risk management processes and controls in their organizations. 7. Consultants: Professionals who provide advice and guidance to clients on risk management strategies and practices. 8. Students: Individuals who are pursuing a career in risk management and want to enhance their knowledge and skills in this field.
Average Salary in Market The PRMIA website, the PRMIA 8004 exam certification is designed for risk managers, and it covers topics such as risk management frameworks, risk governance, and risk culture. The salary after obtaining this certification may vary depending on the industry, location, and experience of the individual. It is recommended to research the current market trends and job postings to get a better understanding of the salary range.
Testing Provider You can visit the PRMIA website or contact their customer support to inquire about exam availability and testing options.
Recommended Experience PRMIA (Professional Risk Managers' International Association) recommends that candidates have a strong understanding of financial mathematics, probability theory, statistics, and risk management concepts. Additionally, candidates should have experience in financial markets, financial instruments, and financial institutions. It is also recommended that candidates have completed the PRMIA 8001 exam, which covers the fundamentals of risk management. Candidates should have a good understanding of the concepts covered in this exam before attempting the PRMIA 8004 exam. Overall, candidates should have a strong background in finance and risk management, as well as practical experience in the field.
Prerequisite The prerequisite for the PRMIA 8004 exam is to have completed the PRMIA Operational Risk Manager (ORM) certification or have equivalent knowledge and experience in operational risk management. Additionally, candidates should have a good understanding of financial markets, risk management principles, and quantitative analysis. It is recommended that candidates have at least two years of experience in operational risk management or a related field.
Retirement (If Applicable) It is recommended to check with PRMIA or their official website for the latest updates on exam retirement dates.
Certification Track (RoadMap): The PRMIA 8004 exam is part of the Professional Risk Manager (PRM) certification program offered by the Professional Risk Managers' International Association (PRMIA). The PRMIA 8004 exam focuses on operational risk management and covers topics such as risk governance, risk identification and assessment, risk monitoring and reporting, and risk mitigation and control. The certification track or roadmap for the PRM program includes four levels of certification: 1. PRMIA Associate: This is the entry-level certification that requires passing the PRMIA 8001 exam, which covers the fundamentals of risk management. 2. PRMIA Professional: This level requires passing four exams, including the PRMIA 8001 exam, the PRMIA 8002 exam (market risk management), the PRMIA 8003 exam (credit risk management), and the PRMIA 8004 exam (operational risk management). 3. PRMIA Advanced Professional: This level requires passing two additional exams, the PRMIA 8011 exam (risk management frameworks, operational risk, and cyber security) and the PRMIA 8012 exam (case studies, ethics, and best practices). 4. PRMIA Master: This is the highest level of certification and requires passing the PRMIA 8020 exam, which is a comprehensive exam covering all aspects of risk management. Overall, the PRM certification program is designed to provide professionals with a comprehensive understanding of risk management and to demonstrate their expertise in the field.
Official Information https://www.prmia.org/Public/PRM/Case_Studies_and_Standards.aspx
Take Self-Assessment Use PRMIA 8004 Practice Test to Assess your preparation - Save Time and Reduce Chances of Failure

PRMIA 8004 Exam Topics :

Section Weight Objectives
Barings   The candidate should be able to:
  • Describe how the massive losses were incurred
  • Describe why the true position was not noticed earlier
  • Describe the role of the External Auditors
  • Describe the supervision done by the Bank of England
  • Describe the role of The Securities And Futures Authority (SFA, now knownas the Financial Services Authority, the FSA)
  • Describe the Lessons learnt from the Barings Case Study
  • Discuss the events leading up to the losses, the risks incurred and the mitigation processes described
National Australia Bank – FX Options   The candidate should be able to:
  • Describe the sequence of events and trading activities that led to the losses
  • Describe the analysis of the losses and how they occurred, with an initial focus on foreign currency option transactions entered into on or after 1 October 2003
  • Describe the key policies, procedures, systems and control failures within the foreign currency options trading business responsible for the losses.
  • Describe the Impacts on customers and third parties
  • Discuss the events leading up to the losses, the risks incurred and the mitigation processes described
Bankgesellschaft Berlin   The candidate should be able to:
  • Describe the Timeline of Events
  • Describe how property-based funds carried unforeseen and uncovered risks
  • Describe the lessons learnt
  • Discuss the events leading up to the losses, the risks incurred and the mitigation processes described
Taisei Fire and Marine Insurance Co.   The candidate should be able to:
  • Describe how events of the 9/11 World Trade terrorist attack brought about massive reinsurance losses - US2.5 billion – when they thought they were fully covered
  • Differentiate between ‘full’ and ‘finite’ reinsurance cover
  • Discuss potential mitigation measures which would have avoided or lessened the losses
  • Discuss the need for stress and scenario testing for the low-frequency-high-impact incidence
Washington Mutual   The candidate should be able to:
  • Describe how the bank’s acquisition of Long Beach Financial in 1999, and Providian in 2005 – both forays into sub-prime lending - brought about the eventual shrinkage of the credit quality of the bank’s loan book
  • Describe the effect and dependency of FHLB funding when only 60% of the bank’s assets were funded by depositors
  • Characterize the deteriorating effect on earnings that substantially increased provisions and net charge-offs would have
  • Identify the events of 2007/8 which contributed significantly to the seizure of the bank by federal authoritie
Fannie Mae and Freddie Mac   The candidate should be able to:
  • Describe how the intervention of politicians, and the creativity of banks in selling to sub-prime lenders, overwhelmed the capabilities of both organizations, and derailed what was essentially a viable and valuable business model
  • Describe how the computer models were ineffective in stress testing the multiplicity of variable repayment and interest plans initially sold to sub-prime lenders
  • Characterize the fundamentals of disintermediation within the asset backed securities value-chain
  • Show how intricately linked the originate-and-distribute model is to investor confidence, both locally and globally
LTCM   The candidate should be able to:
  • Describe the events that led to the collapse of LTCM
  • Describe the lessons learnt
  • Describe how UBS made a loss due to LTCM
  • Discuss the events leading up to the losses, the risks incurred and the mitigation processes described