PRMIA Exam 8004 Topic 1 Question 24 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 24
Topic #: 1

Which of the following should NOT be part of the Risk Management Infrastructure?

ADefine the organization's definition of risk management as articulated by the Board in clear and uncertain terms

BInclude financial risk management, compliance and external reporting and, to the extent that resources allow, should exclude legal or accounting

CBe independently staffed and report to an employee who is on the Executive Committee (Operating Committee) but who is NOT a business unit leader

DReview continually the application of the Principles of Good Governance to the Risk Management Infrastructure, financial accounting and reporting infrastructure and the organization as a whole

Show Suggested Answer

Suggested Answer: D

by Sommer at May 19, 2024, 08:01 PM

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Veronique

5 months ago

Option C is the way to go. Having an independent team report to the Executive Committee is the best way to ensure proper risk management oversight.

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Britt

4 months ago

I see your point, but I still believe option C is the most crucial for ensuring proper risk management infrastructure.

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Justine

5 months ago

I think option D is also important, reviewing the application of good governance principles is crucial for effective risk management.

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Shawana

5 months ago

I agree, having an independent team reporting to the Executive Committee ensures unbiased oversight.

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Rodolfo

5 months ago

I'm going with option B. Excluding legal or accounting from the Risk Management Infrastructure? That's just asking for trouble!

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Denae

6 months ago

Ha! Option A is the clear winner. Defining risk management in 'clear and uncertain terms' sounds like an oxymoron to me.

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Jerry

4 months ago

Yeah, it doesn't make sense to define something in both clear and uncertain terms.

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Ora

5 months ago

C) Be independently staffed and report to an employee who is on the Executive Committee (Operating Committee) but who is NOT a business unit leader

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Monte

5 months ago

I agree, option A is definitely contradictory.

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Georgiana

5 months ago

Yeah, it does sound contradictory. Option A should definitely not be part of the Risk Management Infrastructure.

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Roy

5 months ago

I agree, defining risk management in 'clear and uncertain terms' doesn't make sense.

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Aja

5 months ago

B) Include financial risk management, compliance and external reporting and, to the extent that resources allow, should exclude legal or accounting

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Veda

5 months ago

Yeah, it does sound contradictory. Option A should definitely not be part of the Risk Management Infrastructure.

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Sue

5 months ago

A) Define the organization's definition of risk management as articulated by the Board in clear and uncertain terms

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Ellsworth

5 months ago

I agree, defining risk management in 'clear and uncertain terms' doesn't make sense.

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Sylvie

6 months ago

Option D is the odd one out here. Reviewing the principles of good governance is important, but it's not directly part of the Risk Management Infrastructure.

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Clorinda

6 months ago

I think option B is the one that shouldn't be part of the Risk Management Infrastructure. It mentions excluding legal or accounting, which seems counterintuitive for managing risks.

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Socorro

5 months ago

I think we should definitely include financial risk management and compliance in the infrastructure.

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Miles

6 months ago

I agree, excluding legal or accounting from risk management doesn't make sense.

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