8004 Exam Dumps - PRMIA PRM Certification Questions and Answers

Market Risk

Credit Risk

Operational Risk

Both B and C

transfers only a limited amount of risk at the usual reinsurance price

transfers the total risk at less cost than traditional reinsurance

transfers the total risk at the usual reinsurance price

transfers only a limited amount of risk at less cost than traditional reinsurance

only improve their PERSONAL professional competence

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

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

learn from a qualified risk management practitioner

Offer loans directly to the consumer

Compete directly with banks in selling mortgaged to would-be home owners

Repackage mortgage loans made by banks and sell them on to investors as asset backed securities

Buy mortgage-backed loans for banks and keep them all on their books, using them as collateral for the US government to borrow

I and II

I, II and IV

I, II and III

I only

relied almost entirely on Fortress Re's management team for information on the risks in its portfolio

relied on the information it received from other members of the reinsurance pool to manage its risks

had a full understanding from Fortress Re of the risks in the pool

had a full understanding from other members of the pool of the pool's liabilities

Parliamentarian

Secretary

Vice Chair

Chair only

Large customer withdrawals despite the UK regulator and the UK Treasury giving assurances that the bank was solvent

Doubts arising about the viability of the business model which necessitated Bank of England intervention

A general lack of confidence in mortgage backed securities associated in large part with developments in the US sub-prime mortgage market, and doubts emerging about the viability of the Northern Rock business model

A depositor run on the bank, following doubts about the viability of the Northern Rock business model

Bob Citron engaged in risky strategies to benefit personally

Bob Citron tried to "ride the yield curve"

Bob Citron heavily leveraged his positions using repos

Citron's losses were eventually exposed by massive margin calls

Where there are excess rewards, there must be risks

The Know Your Customer rule

Strategies that are not possible to explain to third parties should not be employed by the risk averse

Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps