PRMIA’s 10 Principles of Good Governance

PRMIA outlines 10 key principles that focus on risk governance, accountability, transparency, and risk

management effectiveness.

These principles ensure strong risk governance structures for financial institutions.

Why Answer B is Correct

Holding the PRM Designation (Professional Risk Manager certification) is NOT a governance

principle.

While PRMIA promotes risk education, governance principles focus on organizational risk structures,

not individual certifications.

Why Other Answers Are Incorrect

Option

Explanation

A . Risk appetite.

Correct – PRMIA governance principles include establishing a clear risk

appetite.

C . External validation.

Correct – External audits and validation improve governance and risk

transparency.

D . Clear accountability. Correct – Governance principles emphasize clear accountability at all levels of

management.

PRMIA Reference for Verification

PRMIA 10 Principles of Good Governance

Basel Corporate Governance Guidelines for Financial Institutions