PRMIA Exam 8004 Topic 1 Question 19 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 19
Topic #: 1

Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:

I competitive market conditions

II ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders

III ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators

IV reporting all such personnel to the local regulator

AII, III and IV only

BI, II and IV only

CAll of the above

DI and II only

Show Suggested Answer

Suggested Answer: D

by Lizette at Mar 18, 2024, 12:14 PM

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Christa

5 months ago

I see where you're coming from, but I still think C) All of the above is the most comprehensive choice

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Lauran

5 months ago

I feel like maybe D) I and II only could also be correct, as those are key considerations for compensation plans

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Leslee

5 months ago

I agree, because all the options seem relevant for the Board of Directors to consider

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Loreta

5 months ago

I think the answer is C) All of the above

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Malcom

5 months ago

I believe so, that's why I would choose B) I, II and IV only

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Hershel

6 months ago

But aren't competitive market conditions and compliance with corporate risk appetite the most crucial aspects?

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Winfred

6 months ago

I agree, because all those points are important for the Board to consider

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Tom

7 months ago

I think the answer is C) All of the above

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