PRMIA 8020 Question Answer
Which of the following is a correct statement about control rating scales?
They are enhanced by the use of software that includes inherent risk.
A control rating scale should consider control effectiveness but not control performance.
A control rating scale should consider both control effectiveness and control performance.
A control rating scale should consider neither control effectiveness or control performance.
Definition of Control Rating Scales
Control rating scalesmeasure the effectiveness and performance of risk management controls.
They help organizationsevaluate control strength and identify weaknesses.
Key Components
Control effectiveness→ Measureshow well the control mitigates risks.
Control performance→ Assesseswhether the control operates as designed in practice.
Why Answer C is Correct
Botheffectivenessandperformancearecrucial for assessing control reliability.
A control may bedesigned effectively but fail in execution, makingboth factors essential.
Why Other Answers Are Incorrect
Option
Explanation
A. They are enhanced by the use of software that includes inherent risk.
Incorrect– Software can improve ratings, but control scales arebased on evaluation criteria, not just software tools.
B. A control rating scale should consider control effectiveness but not control performance.
Incorrect– Ignoring performance could lead tomisjudging actual control reliability.
D. A control rating scale should consider neither control effectiveness nor control performance.
Incorrect– This wouldrender the control rating scale useless.
PRMIA Governance and Control Framework
Basel Operational Risk Management Guidelines
PRMIA References for Verification
TESTED 07 Jul 2025
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