Discuss PRMIA 8010 Exam Topic 1 Question 12

A risk management function is best organized as:

Aintegrated with the risk taking functions as risk management should be a pervasive activity carried out at all levels of the organization.

Breport independently of the risk taking functions

Creporting directly to the traders, as to be closest to the point at which risks are being taken

Da part of the trading desks and other risk taking teams

Suggested Answer: B

The point that this question is trying to emphasize is the independence of the risk management function. The risk function should be segregated from the risk taking functions as to maintain independence and objectivity.

Choice 'd', Choice 'c' and Choice 'a' run contrary to this requirement of independence, and are therefore not correct. The risk function should report directly to senior levels, for example directly to the audit committee, and not be a part of the risk taking functions.

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12 comments · newest first

Krissy 11 months ago

Surprised to see A getting so much love!

Karrie 11 months ago

D? Really? That seems too close for comfort.

Rosita 12 months ago

C sounds risky, but I see the logic.

Florinda 12 months ago

I disagree, B makes more sense for objectivity.

Kanisha 12 months ago

A is definitely the way to go! Risk should be everyone's job.

Solange 1 year ago

I practiced a question similar to this, and I think D could be a possibility, but it seems risky to have them too close to the trading desks.

Norah 1 year ago

I'm not entirely sure, but I feel like B makes sense since independence can help avoid conflicts of interest.

Myra 1 year ago

I remember discussing how risk management should be integrated with risk-taking functions, so I think A might be the right choice.

Santos 1 year ago

I have a vague memory of a case study that favored A, emphasizing that risk management needs to be pervasive throughout the organization.

Ora 1 year ago

Hmm, the diagram doesn't give too many clues. I'm a bit unsure about this one, but I'll try to reason through the options.

Johnathon 1 year ago

Okay, let's see. I think the first step is to identify the technology the application is built on, so I'll definitely choose option A. Then I'll need to verify the other key aspects like the interactions and match rules.

Isabella 1 year ago

Configuring the WAF to filter requests from a specific IP address doesn't seem like the right approach here. I'll need to focus on the network and server configuration to resolve this issue.

PRMIA 8010 Exam - Topic 1 Question 12 Discussion