What was the most important loss for Bankers Trust?

• A.Money due to unfavourable market moves
• B.Time spent on legal proceedings in courts
• C.Loss of market share due to their licenses being revoked
• D.Loss of its' reputation due to actions seen as detrimental to their clients

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Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:
I. competitive market conditions
II. ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders III. ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators IV. reporting all such personnel to the local regulator

• A.II, III and IV only
• B.All of the above
• C.I, II and IV only
• D.I and II only

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TMFI's internal procedures and management were

• A.None of the above
• B.aware that they had some uninsured liabilities but thought they had enough capital to withstand any uninsured losses
• C.fully aware of the uninsured risks Fortress Re were taking
• D.absolutely unaware of their uninsured liabilities

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Which of the following would have contributed to noticing and preventing Leeson's violations at Barings?

• A.Separation of front and back offices
• B.All of the above
• C.Recognition that large profits can be an indicator of higher risk
• D.More senior level involvement at Barings regarding use of derivatives

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According to PRMIA governance principles, boards and audit committees should ...

• A.Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholders
• B.Leave shareholder accountability to senior management who decides strategic direction
• C.Be composed of key business unit representatives
• D.Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructure

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