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PRMIA 8020 Exam - Topic 2 Question 17 Discussion

Which of the following statements is best for inclusion in the values to be set for a Risk Function?
B) We prize the ability to implement the board's direction on the implementation of controls for risks.
A) We prize the ability to implement the management team's direction on the control of risks.
C) We prize the ability to ensure that the Risk Function's opinions are listened to and acted upon.
D) We prize the ability to lower risk-taking to an absolute minimum - zero if possible.

PRMIA 8020 Exam - Topic 2 Question 17 Discussion

Actual exam question for PRMIA's 8020 exam
Question #: 17
Topic #: 2
[All 8020 Questions]

Which of the following statements is best for inclusion in the values to be set for a Risk Function?

Show Suggested Answer Hide Answer
Suggested Answer: B

Step 1: Role of a Risk Function

A Risk Function ensures that an organization follows best practices in risk governance, assessment, and control implementation.

It should be aligned with the board's risk strategy and ensure independent oversight.

Step 2: Why Option B is Correct

The board sets the overall risk strategy, and the risk function implements risk controls accordingly.

PRMIA emphasizes board oversight as the guiding force behind risk management.

Step 3: Why the Other Options Are Incorrect

Option A ('Implement management's direction') Incorrect because risk oversight should be board-driven, not solely management-driven.

Option C ('Ensure opinions are listened to') Incorrect because risk functions enforce policies, not just share opinions.

Option D ('Lower risk-taking to zero') Incorrect because risk-taking is necessary for growth---excessive risk aversion harms business.

PRMIA Risk Reference Used:

PRMIA Risk Governance Framework -- Highlights board oversight in risk management.

Basel III Risk Management Standards -- Emphasizes board-driven risk controls.

Final Conclusion:

The Risk Function must follow the board's direction in implementing risk controls, making Option B the correct answer.


by Terry at Nov 25, 2025, 07:14 AM

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Lai
4 months ago
True, but we should aim for minimal risk. Balance is important.
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Lasandra
4 months ago
D sounds good, but zero risk isn't realistic.
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Winfred
4 months ago
But B emphasizes the board's role, which is vital for governance.
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Anjelica
5 months ago
A is solid too. Following management's direction is key.
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Emile
5 months ago
I agree, C shows the importance of communication.
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Chaya
5 months ago
I think option C is the best. It's crucial for the Risk Function to be heard.
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Pamella
5 months ago
A) is practical, but B) is more authoritative.
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Filiberto
5 months ago
D) Zero risk is unrealistic, right?
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Staci
5 months ago
I prefer B) - board direction is crucial!
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Frederica
6 months ago
Option D - "zero risk if possible"? What is this, a game of Minesweeper? Option B is the sensible choice.
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Raina
6 months ago
Option B is the clear winner here. Anything else would be a power grab by the Risk Function.
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Winifred
6 months ago
Option C sounds like the Risk Function wants to be the boss. Option B keeps the board in charge, which is the right approach.
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Jamal
7 months ago
Option D is a bit extreme. Lowering risk to zero is not always feasible or desirable. Option B is the way to go.
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Jenifer
7 months ago
I agree with Ricarda. Option B is the most appropriate statement for a Risk Function's values.
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Ricarda
7 months ago
Option B is the best choice. It clearly states the board's role in directing the implementation of risk controls.
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Maryann
7 months ago
I'm leaning towards option A because it highlights the management team's direction, but I wonder if that makes it too focused on just one level of leadership.
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Svetlana
7 months ago
I remember practicing a question similar to this, and I feel like option B could be relevant since it ties back to the board's authority.
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Elmira
7 months ago
I think option C might be the best choice since it emphasizes the importance of the Risk Function's voice being heard. But I'm not entirely sure.
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Honey
8 months ago
This is a good question. I think option C is the best one - the risk function should have its opinions listened to and acted upon. That seems like the core purpose of the function.
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Lewis
8 months ago
I'm pretty sure option D is the wrong answer. Lowering risk to zero is not realistic or desirable for a risk function. I'll go with option C.
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Pearline
8 months ago
Okay, let me see here. I think option B is the best choice - it focuses on the board's direction, which seems most appropriate for a risk function.
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Fannie
8 months ago
A) makes sense for management alignment.
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Moira
9 months ago
C) sounds nice, but will they really listen?
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Broderick
9 months ago
Option D sounds good in theory, but isn't it unrealistic to aim for zero risk? I feel like we need a balance instead.
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Jennie
9 months ago
Hmm, this is a tough one. I'm leaning towards option C, but I'm not totally confident. I'll have to think it through.
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Monroe
9 months ago
I'm not sure about this one. The wording of the options seems a bit tricky. I'll need to read through them carefully.
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Nikita
4 months ago
Exactly! Balance is essential in risk management.
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Hoa
4 months ago
True, but sometimes you have to take calculated risks.
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Bettina
4 months ago
Option D is interesting. Minimizing risk is always a goal, but is zero realistic?
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Nikita
8 months ago
I agree, but option A emphasizes management's direction. That’s crucial too.
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Hoa
8 months ago
I think option C sounds the most important. Listening to the Risk Function is key.
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