PRMIA Exam 8004 Topic 1 Question 29 Discussion

Actual exam question for PRMIA's Case Studies; Standards: Governance, Best Practices and Ethics exam

Question #: 29
Topic #: 1

[All Case Studies; Standards: Governance, Best Practices and Ethics Questions]

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

AI and II only

BI, II and IV only

CI, II and III only

DAll of these are responsibilities of Board and Audit Committees

Show Suggested Answer

Suggested Answer: D

by Ma at Jul 14, 2024, 10:39 PM

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Janna

2 months ago

This question is making my head spin. Boards and Audit Committees have so many responsibilities these days, it's hard to keep track. At least we can all agree that they should work for the benefit of the public good and financial stability, right?

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Wilda

2 months ago

Hmm, I'm not sure. This seems like a tricky question. Maybe they're trying to trick us with the wording or something. I'll have to think about this one a bit more.

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Sanda

1 months ago

Let's review the options again to make sure we understand each point

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Lauryn

1 months ago

I believe it's D) All of these are responsibilities of Board and Audit Committees

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Oretha

2 months ago

I'm not sure, maybe it's C) I, II and III only

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Raina

2 months ago

I think it's B) I, II and IV only

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Nikita

2 months ago

I disagree, I believe the answer is D. All of these responsibilities are crucial for Boards and Audit Committees to ensure proper governance and risk management.

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Bernardo

2 months ago

I think the correct answer is C. Boards and Audit Committees should clearly articulate the corporate risk appetite, review compensation plans, and have a single member responsible for understanding and reporting on the effectiveness of the risk management infrastructure.

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Lyndia

1 months ago

Definitely, having a single member responsible for reporting on risk management effectiveness is key for accountability and transparency.

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Leota

1 months ago

I think so too. It's crucial for them to have a clear understanding of the corporate risk appetite and ensure compensation plans align with it.

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Charlie

2 months ago

I agree, C seems to be the correct answer. It covers all the important responsibilities of Boards and Audit Committees.

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Monroe

3 months ago

I believe having a single member responsible for understanding and reporting on risk management is also important, so I think the answer is C) I, II and III only.

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Anglea

3 months ago

I agree, the Board and Audit Committees should clearly articulate risk appetite and review compensation plans.

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Veronika

3 months ago

I think the answer is B) I, II and IV only.

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