PRMIA Exam 8004 Topic 1 Question 23 Discussion

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