Review a compact Partners, Directors and Officers (PDO) cheat sheet for executive responsibilities, regulatory context, business models, securities distribution, governance, liability, risk management, ethics, and compliance-consequence traps before Finance Prep practice.
Use this PDO cheat sheet as a senior-governance checklist before mixed practice. The exam usually rewards the response that identifies the material risk, places it at the right governance level, preserves evidence, and leaves a defensible oversight record.
| Item | PDO cue |
|---|---|
| Provider | CSI |
| Exam | Partners, Directors and Senior Officers |
| Format | 80 multiple-choice questions in 2 hours |
| Main practice behavior | executive oversight, governance, business-risk judgment, distribution controls, liability, ethics, and remediation |
| Finance Prep status | live practice available |
| Area | What to know | Common trap |
|---|---|---|
| Executive role and regulation | senior responsibilities, regulatory environment, firm oversight, accountability | treating senior oversight as passive awareness |
| Industry business models | revenue sources, product lines, conflicts, operations, client segments | approving growth before controls are ready |
| Distribution of securities | offering process, disclosure, conflicts, supervision, dealer obligations | focusing on sales results instead of distribution risk |
| Governance and ethics | board challenge, committee oversight, conflict controls, evidence | rubber-stamping management because the policy exists |
| Liability | director and officer duties, due diligence, indemnification, legal exposure | assuming delegation removes responsibility |
| Risk management | operational, credit, market, conduct, technology, privacy, AML, capital risk | treating risk as a department instead of a governance process |
| Compliance consequences | investigations, sanctions, remediation, reporting, follow-up testing | closing the issue when discipline is imposed |
After each PDO set, classify misses as executive role, business model, distribution, governance, liability, risk management, ethics, or compliance consequence. If the best answer required challenge, restriction, or follow-up testing, write what evidence the senior decision-maker needed before approving action.