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8004 – PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

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Showing 4–6 of 10 questions

Question 4

The hedging strategy employed by MG Refining & Marketing has been called:

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    Dynamic hedging
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    A stacked hedge
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    A differential hedge
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    Nothing because MG Refining & Marketing did not hedge its position
Question 5

What was the main type of risk that Metallgesellschaft was exposed to?

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    Basis Risk
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    Currency Settlement
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    Interest Rate
  • ○

    Inflation
Question 6

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

Select an option, then click Submit answer.

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    I and II only
  • ○

    I, II and IV only
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    I, II and III only
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    All of these are responsibilities of Board and Audit Committees
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    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