Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

PRMIA Exam 8020 Topic 4 Question 3 Discussion

Actual exam question for PRMIA's 8020 exam
Question #: 3
Topic #: 4
[All 8020 Questions]

Governance can be defined as which of the following?

Show Suggested Answer Hide Answer
Suggested Answer: D

Definition of Governance

Governance refers to the framework of policies, principles, and processes used to guide corporate decision-making and strategic direction.

It ensures accountability, transparency, and risk oversight within an organization.

Key Elements of Governance

Risk oversight -- Ensuring risks are properly identified and managed.

Accountability structures -- Defining roles and responsibilities.

Decision-making frameworks -- Establishing policies for long-term corporate success.

Why Other Answers Are Incorrect

Option

Explanation

A . Governance is a structure specifying the daily operation of a firm.

Incorrect -- Governance focuses on high-level corporate oversight, not day-to-day operations.

B . Governance is a structure specifying the ways in which reporting is made to the primary regulator.

Incorrect -- Governance is broader than just regulatory reporting.

C . Governance is being replaced by management in all firms that are regulated.

Incorrect -- Governance and management are separate but complementary; governance provides oversight, while management executes strategy.

PRMIA Reference for Verification

PRMIA 10 Principles of Good Governance


by Wava at Feb 07, 2025, 08:43 PM

Limited Time Offer

25%

Off

Get Premium 8020 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Gilberto
24 days ago
Haha, nice try with that option C! Governance is definitely not being replaced by management, they work hand-in-hand to keep a company on track.
upvoted 0 times
Detra
13 days ago
B) Governance is a structure specifying the ways in which reporting is made to the primary regulator.
upvoted 0 times
...
Lorean
15 days ago
A) Governance is a structure specifying the daily operation of a firm.
upvoted 0 times
...
...
Paul
1 months ago
I believe governance is more than just daily operations, it's about the overall direction of the company.
upvoted 0 times
...
Devora
1 months ago
I think D is the right answer. Governance is the overarching framework that shapes how a company is run, not just the specific details of operations or reporting.
upvoted 0 times
Crista
2 days ago
Actually, I believe it's D as well. Governance is about setting the policies and principles for decision-making.
upvoted 0 times
...
Blondell
16 days ago
I think it's A. Governance is more about the daily operations and management is about decision-making.
upvoted 0 times
...
Enola
23 days ago
I agree, D is the correct answer. Governance sets the overall direction for the company.
upvoted 0 times
...
...
Nickole
1 months ago
The answer is clearly D. Governance is all about the policies, principles, and procedures that guide decision-making in a company. This covers the big picture, not just daily operations or reporting to regulators.
upvoted 0 times
Mendy
8 days ago
That's true, governance is more than just day-to-day operations.
upvoted 0 times
...
Marge
12 days ago
It's important to have clear policies and principles in place for decision-making.
upvoted 0 times
...
Helga
20 days ago
I agree, governance is about setting the direction for the company.
upvoted 0 times
...
...
Fletcher
2 months ago
I agree with Lashandra, governance is all about setting policies and principles.
upvoted 0 times
...
Lashandra
2 months ago
I think governance is about making decisions for the company.
upvoted 0 times
...

Save Cancel