PRMIA Exam 8020 Topic 7 Question 7 Discussion

Step 1: What Is the Turnbull Report?

The Turnbull Report (1999) was a UK corporate governance report that set risk management expectations for boards.

It required companies to assess and manage risks effectively as part of corporate governance.

Step 2: Why Option C is Correct

Turnbull was the first report to mandate that boards must consider risk management in corporate governance.

This report established risk assessment as a board-level responsibility.

Step 3: Why the Other Options Are Incorrect

Option A ('Defined risk governance for insurance') Incorrect because Turnbull applied to all sectors, not just insurance.

Option B ('First report to propose board structure') Incorrect because corporate boards existed long before Turnbull.

Option D ('Led to the US Federal Reserve') Incorrect because the Federal Reserve was established in 1913, long before Turnbull.

PRMIA Risk Reference Used:

PRMIA Corporate Governance Guidelines -- Highlights Turnbull's role in board-level risk oversight.

UK Corporate Governance Code -- Turnbull contributed to defining board risk responsibilities.

Final Conclusion:

The Turnbull Report was the first to require boards to consider risks in corporate governance, making Option C the correct answer.