Which of the following statements is best for inclusion in the values to be set...

ARisk Functionensures that an organization followsbest practices in risk governance, assessment, and control implementation.

It should bealigned with the board’s risk strategyand ensureindependent oversight.

Theboard sets the overall risk strategy, and therisk function implements risk controls accordingly.

PRMIA emphasizesboard oversight as the guiding force behind risk management.

Option A ("Implement management’s direction")→ Incorrect becauserisk oversight should be board-driven, not solely management-driven.

Option C ("Ensure opinions are listened to")→ Incorrect becauserisk functions enforce policies, not just share opinions.

Option D ("Lower risk-taking to zero")→ Incorrect becauserisk-taking is necessary for growth—excessive risk aversion harms business.

Step 1: Role of a Risk FunctionStep 2: Why Option B is CorrectStep 3: Why the Other Options Are Incorrect

PRMIA Risk Governance Framework– Highlights board oversight in risk management.

Basel III Risk Management Standards– Emphasizes board-driven risk controls.

PRMIA Risk References Used:

Final Conclusion:The Risk Function must follow the board’s direction in implementing risk controls, makingOption B the correct answer.