PRMIA Exam 8004 Topic 1 Question 30 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 30
Topic #: 1

[All 8004 Questions]

A risk manager has just completed a risk assessment project. The report has been given to the risk manager's direct supervisor, who refuses to escalate the material issues raised in the report. Further, the direct supervisor edits the report to remove the section describing the material risk, who then submits it to the firm's Executive Committee.

According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), which of the following actions is most appropriate:

AThe risk manager has submitted the report to their direct supervisor and their obligation ends at this point, nothing further should be done

BThe risk manager should attempt to resolve the conflict with the direct supervisor, but if that does not work, they should contact the Whistle-Blowing Hotline of the organization. If no such hot-line is in place, they should contact the PRMIA Ethics Committee

CEscalation of the issue is against the Code of Conduct because one should respect the administrative structure of the organization

DIf the risk manager deems it appropriate, he / she should send a copy of the original report to the CEO

Show Suggested Answer

Suggested Answer: D

by Armanda at Aug 02, 2024, 04:05 PM

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Angelica

7 months ago

I'm not sure, I think it could also be D) I and II only, as those are crucial factors to consider in compensation plans.

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Toshia

7 months ago

I agree with Roxane, because all the options seem important for the Boards of Directors to consider.

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Roxane

7 months ago

I think the answer is C) All of the above.

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Alyce

7 months ago

Wait, are we talking about the Compensation Committee or the Comedy Club? I'm just here for the discretionary bonus plans, if you know what I mean.

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Judy

6 months ago

Yeah, and also for keeping high income generators with discretionary bonus plans.

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Colton

7 months ago

I think it's for competitive market conditions and ensuring compliance with risk appetite.

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Twila

7 months ago

We need to review compensation plans for highly compensated positions.

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Reuben

7 months ago

I believe C) All of the above is the correct answer, as reporting to the regulator is also crucial in this context

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Jade

7 months ago

I agree, because competitive market conditions and compliance with risk appetite are important factors to consider

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Jettie

8 months ago

This question is really testing our corporate governance chops. Time to put on my boardroom hat and choose wisely!

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Mitsue

8 months ago

Hmm, III sounds a bit sketchy to me. Why would we want to prioritize 'high income / revenue generators' over everything else? Nah, I'm sticking with A.

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