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?

AWe prize the ability to implement the management team's direction on the control of risks.

BWe prize the ability to implement the board's direction on the implementation of controls for risks.

CWe prize the ability to ensure that the Risk Function's opinions are listened to and acted upon.

DWe prize the ability to lower risk-taking to an absolute minimum - zero if possible.

Show Suggested 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

1 month ago

True, but we should aim for minimal risk. Balance is important.

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Lasandra

1 month ago

D sounds good, but zero risk isn't realistic.

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Winfred

1 month ago

But B emphasizes the board's role, which is vital for governance.

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Anjelica

2 months ago

A is solid too. Following management's direction is key.

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Emile

2 months ago

I agree, C shows the importance of communication.

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Chaya

2 months ago

I think option C is the best. It's crucial for the Risk Function to be heard.

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Pamella

2 months ago

A) is practical, but B) is more authoritative.

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Filiberto

2 months ago

D) Zero risk is unrealistic, right?

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Staci

2 months ago

I prefer B) - board direction is crucial!

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Frederica

3 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

3 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

3 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

4 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

4 months ago

I agree with Ricarda. Option B is the most appropriate statement for a Risk Function's values.

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Ricarda

4 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

4 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

4 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

4 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

5 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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