FRM 2026 Part I Foundations of Risk Management Corporate Governance Free Quiz 2

Practice FRM 2026 Part I Foundations of Risk Management MCQs from Corporate Governance. Get instant results with Explanation.

General10 MCQs

1. What is the Stewardship Code?

A. The Stewardship Code applies to all companiesB. The Stewardship Code applies to directorsC. The Stewardship Code is mandatoryD. The Stewardship Code applies to institutional investors and promotes engagement

2. What are the consequences of corporate governance failures?

A. Corporate governance failures have no impactB. Corporate governance failures are rare and insignificantC. Corporate governance failures only affect small companiesD. Corporate governance failures can cause financial loss and reputational damage

3. What is the role of the company secretary in corporate governance?

A. The company secretary is only responsible for taking minutesB. The company secretary ensures compliance and supports board governanceC. The company secretary is not a governance roleD. The company secretary is the same as the CEO

4. What is ESG and its relevance to corporate governance?

A. ESG factors are not relevant to governanceB. ESG factors only relate to environmental issuesC. ESG factors are integrated into corporate governanceD. ESG factors are not regulated

5. What is the recommended board composition for good governance?

A. The board can be composed entirely of executive directorsB. The board does not need independent directorsC. The board composition is not specified by governance codesD. The board should have a balance of executive and independent non-executive directors

General10 MCQs

6. What is the purpose of board evaluation?

A. Board evaluation is optionalB. Board evaluation is only for public companiesC. Board evaluation is not recommendedD. Board evaluation helps identify areas for improvement and effectiveness

7. Why is transparency important in corporate governance?

A. Transparency is not important in governanceB. Transparency in governance builds trust and accountabilityC. Governance frameworks can be opaqueD. Transparency is only required for financial reporting

8. What is the board's responsibility regarding internal controls?

A. Internal controls are the responsibility of the management onlyB. Risk management is separate from governanceC. The board is responsible for ensuring effective internal controls and risk managementD. Internal controls are not a governance matter

9. What is a corporate governance statement?

A. A corporate governance statement should be included in the annual reportB. A corporate governance statement is optionalC. The annual report does not need to mention governanceD. Only listed companies need to provide governance information

10. Why is diversity important on a board?

A. Diversity is not important for board effectivenessB. Diversity policies are not recommendedC. Diversity is only relevant to non-executive directorsD. Diversity on the board brings different perspectives and improves decision-making

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