John Smith wants to run for election to the Board of Directors of PRMIA. To be nominated, he needs:

• A.The backing of five other members and to be serving on at least one PRMIA Committee
• B.To go through a screening process conducted by the Nominations Committee
• C.The backing of 6% of local members
• D.The backing of three other members

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The problems at WorldCom can best be characterized as related to:

• A.Credit Risk
• B.Operational and Regulatory Compliance Risk
• C.All of the Above
• D.Market Risk

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Finite insurance is reinsurance which

• A.transfers only a limited amount of risk at less cost than traditional reinsurance
• B.transfers the total risk at the usual reinsurance price
• C.transfers only a limited amount of risk at the usual reinsurance price
• D.transfers the total risk at less cost than traditional reinsurance

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For the sentence
"The organization should have at its disposal employees who have adequate _________, ________ and
_______ to perform the tasks assigned to them",
Choose the correct combination of words from the following options:

• A.track record, expertise, skills
• B.risk appetite, knowledge, expertise
• C.experience, skills, previous successes
• D.knowledge, skills, expertise

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A risk manager is asked to analyze the credit risk of a convertible bond. The risk manager has never analyzed convertible bonds, but does have significant expertise in credit risk. The risk manager accepts the assignment, finds a paper on the subject through the PRMIA web site and copies the method used there. The risk manager completes the assignment and delivers a report to his or her direct supervisor and the supervisor is quite pleased.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), this was acceptable behavior if the following conditions were met:
I. The risk manager disclosed the lack of knowledge about convertible bonds II. The methodology employed is disclosed and explained III. The report was just to be used for analysis and not in practice IV. The risk manager was sure of his/her understanding of the paper found on the web

• A.I only
• B.I, II and III
• C.I, II and IV
• D.I and II

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