Q: 8
Which of the following would be the most appropriate first step for the board to take when
developing an effective system of governance?
Options
Discussion
D . Stakeholder expectations have to come before you can set up risk appetite or governance committees.
Its D, you really have to identify stakeholders and what they expect before making any governance moves. Pretty sure that's step one.
C/D? Not convinced authority can come before knowing what stakeholders want, but some frameworks make C sound tempting as a trap.
Option D, but only if the mission and vision haven’t already been defined. If those are in place, sometimes frameworks put risk appetite (A) earlier. The question wording matters a lot here.
I don’t think it’s A. D. Risk appetite comes later, and B is more a structure than a first action.
C/D? Not sure which comes first if you follow strict frameworks, but I'd lean D here.
D makes sense. Before setting risk appetite or forming committees, you need to know who the stakeholders are and what they expect.
D imo. Saw similar in practice exams, usually they start with stakeholders before anything else. Official guide backs this order I think.
I’d say D here, but is the question asking for the first step if the organization already has its vision and mission set? If that's the case, identifying stakeholders might not actually come first. Just want to clarify where in the process we are.
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