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Updated: Oct 19, 2026

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PRMIA 8004 Exam Overview:

Certification Vendor:Professional Risk Managers' International Association (PRMIA)
Exam Name:PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
Exam Number:8004
Available Languages:English
Passing Score:60% (PRM exam standard) :contentReference[oaicite:0]{index=0}
Certificate Validity Period:PRM designation sustainable with continued membership; certificate validity linked to PRM status, not separate expiry
Real Exam Qty:110 multiple-choice questions (varies slightly by test version) :contentReference[oaicite:1]{index=1}
Related Certifications:PRM (Professional Risk Manager) Designation
Exam Format:Case study based questions, Multiple choice
Exam Duration:Usually part of PRM Exam 2 structure, ~240 total for exam 2 (individual session details vary by test form)
Exam Price:See PRMIA official fee schedule (varies by membership status; official site required) :contentReference[oaicite:2]{index=2}
Sample Questions:PRMIA 8004 Sample Questions
Exam Way:Computer-based testing administered through PRMIA testing windows / partner test centers; case studies integrated within multiple-choice format
Pre Condition:Must be enrolled in or progressing toward the PRM designation program; detailed prerequisites and eligibility provided by PRMIA candidate guidebook or official site :contentReference[oaicite:3]{index=3}
Official Syllabus URL:https://www.prmia.org/Public/Public/PRM/Case_Studies_and_Standards.aspx

PRMIA 8004 Exam Syllabus Topics:

SectionObjectives
Topic 1: Standards & Practices- Principles of Good Governance Principles, PRMIA
- Standards of Best Practice, Conduct and Ethics, PRMIA Ethics Committee
- Bylaws of Professional Risk Managers' International Association, PRMIA
- Group of Thirty Best Practices, Global Derivatives Study Group
Topic 2: Case Studies- Operational Resilience at TSB
- Silicon Valley Bank
- Fannie Mae and Freddie Mac
- Washington Mutual (Wamu)
- National Australia Bank (NAB) - FX Options
- Long Term Capital Management (LTCM)
- Metallgesellschaft
- Northern Rock
- Lehman Brothers
- FTX
- WorldCom
- Barings
- Orange County
- Bankers Trust
- American Insurance Group (AIG)

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

Question #1

Which of the following CANNOT be counted as a reason why LTCM was given a rescue package and not left to default?

  • A. The consortium wanted to keep this out of the regulators' eyes
  • B. Many of the banks in the rescue consortium were among LTCM's counterparties
  • C. Untimely unwinding of some LTCM positions would lead to large market fluctuations and possible turmoil
  • D. Some of the banks in the rescue consortium were LTCM investors
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

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, II and III
  • B. I, II and IV
  • C. I only
  • D. I and II
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust

  • A. did not honour its contractual obligations to pay
  • B. hid profits
  • C. was involved in accounting fraud
  • D. sold them derivative products without properly advising them of the relevant risks
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

Unlike the case at Barings Bank, National Australia Bank:

  • A. Had a Board of Directors that was unaware of the true nature of trading activities
  • B. Had a separation of duties between trading and back office
  • C. Had a risk management infrastructure that was credited with doing its' job well, despite the losses
  • D. Was not dealing in derivatives
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

According to the PwC report China Aviation Oil, in order to avoid recording and reporting losses, the company adopted which approach covering up its losses?

  • A. selling long-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions
  • B. selling short-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions
  • C. selling long-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions
  • D. selling short-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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