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.
