PRMIA Case Studies; Standards: Governance, Best Practices and Ethics Exam

PRMIA Governance Principles

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Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:

I competitive market conditions

II ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders

III ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators

IV reporting all such personnel to the local regulator

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The Risk Management Infrastructure of an organization must:

I To the extent possible, avoid silos of control and oversight

II Have budgets set by the business unit leaders

III Actively provide ongoing professional development for risk management staff and require them to be committed to standards of best practice, conduct and ethics in their work

IV Provide general risk management and related corporate governance training for employees of the organization as a Whole

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Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:

I competitive market conditions

II ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders

III ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators

IV reporting all such personnel to the local regulator

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Which of the following should NOT be part of the Risk Management Infrastructure?

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