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PRM Certification - Exam IV: Case Studies Questions and Answers

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Question 1

A risk manager has just completed a risk assessment project. The report has been given to the risk manager's direct supervisor, who refuses to escalate the material issues raised in the report. Further, the direct supervisor edits the report to remove the section describing the material risk, who then submits it to the firm's Executive Committee.

According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), which of the following actions is most appropriate:

Options:

A.

The risk manager has submitted the report to their direct supervisor and their obligation ends at this point, nothing further should be done

B.

The risk manager should attempt to resolve the conflict with the direct supervisor, but if that does not work, they should contact the Whistle-Blowing Hotline of the organization. If no such hot-line is in place, they should contact the PRMIA Ethics Committee

C.

Escalation of the issue is against the Code of Conduct because one should respect the administrative structure of the organization

D.

If the risk manager deems it appropriate, he / she should send a copy of the original report to the CEO

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Question 2

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

Options:

A.

The backing of three other members

B.

To go through a screening process conducted by the Nominations Committee

C.

The backing of 6% of local members

D.

The backing of five other members and to be serving on at least one PRMIA Committee

Question 3

A risk assessment report generated by a PRMIA member creates an apparent conflict of interest between the PRMIA standards and those of the client organization.

Of the following, which is the correct hierarchy to follow to resolve the conflict?

I. The decision of a superior within the organization

II. PRMIA Standards

III. Guidelines from the regulators in which the organization operates

IV. The laws of the country

Options:

A.

I, II, III, and IV

B.

IV, III, II, and I

C.

II, I, IV, and III

D.

III, II, IV, and I

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