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

1. While doing a work assignment, a PRMIA member notices behaviour that is outside the ethical standards of their client organization and reports the matter to their immediate supervisor in the organization (if he or she wasn't the one engaging in such behaviour). The matter is neither progressed nor actioned.
The PRMIA member should:

A) stay silent on the basis that they have reported it
B) report the matter to their PRMIA chapter
C) contact the Whistle-Blowing Hotline of the organization or, if none exits, to the PRMIA Ethics Committee for guidance and assistance
D) report the matter to the organization's Compliance Dept.

2. The key people involved in the application of good governance and risk management must:
I be trustworthy
II be honest
III be approved by the local regulator
IV treat others fairly at all times

A) I, II, and III only
B) I, II, III and IV above
C) III only
D) I, II, and IV only

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

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

4. Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?

A) Take responsibility for your work
B) Respect local laws and regulations
C) Ensure globally accepted standards are adhered to at all costs
D) Respect local customs

5. Boards, including Audit and Risk Committees must:
I Clearly articulate the corporate risk appetite to senior management
II Thoroughly review compensation plans of potentially "highly compensated positions" for consistency with corporate risk appetite, competitive market conditions and fiduciary responsibility to shareholders III Have a single member formally given responsibility for understanding and reporting the effectiveness of the corporation's risk management infrastructure IV. Be fully accountable to shareholders and work to the benefit of public good and financial stability

A) All of these are responsibilities of Board and Audit Committees
B) I, II and III only
C) I and II only
D) I, II and IV only

Solutions: