8020 Free Exam Questions & Answers (Updated 2026)

What are the roles of business versus risk management in developing and implementing risk assessments?

Choose the Choices:

Risk management, in its role as second line of defense, performs the risk assessment process from beginning to end. There is no business line involvement.

The business owns the risk assessment process, while risk management develops the framework, helps facilitate the process, and provides supervision and oversight.

Business owns the risk assessment process so risk management does not play a role in the process.

Business management's role in the risk assessment process should be confined to oversight.

When a control is found to be ineffective, which of the following steps should be take next?

Choose the Choices:

Risks should be re - assessed to determine if there is the appropriate level of control assessment.

The controls should be re - assessed during the next cycle to determine if they are still ineffective.

Risks should be re - assessed to determine if there can be an exception for the level of control assessment.

How can a chief risk officer encourage the governing body and executive management team to create a stronger risk culture?

Choose the Choices:

Balance rewarding success in profitability goals with punishment when there is a failure to achieve goals.

How should Near Misses and Opportunity Costs be treated within Operational Risk?

Choose the Choices:

Reported. Recorded and Analyzed. Not Used in calculation of Operational Risk Capital.

Reported, Recorded and Analyzed, Used in calculation of Operational Risk Capital.

Ideally, which of the following should be completed as part of the risk assessments of service providers?

Choose the Choices:

An assessment of a third party should include its compliance and risk infrastructure, financials, business strategy and operating history.

An assessment of a third party should not include its compliance and risk infrastructure, financials, business strategy and operating history.

Onsite visits are not advantageous for understanding the third party's risks and control environment.

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PRMIA 8020 Free Exam Questions (Updated 2026)