What is the relationship between the PLM and the company's board of directors or owners?

• A. The PLM acts independently with no reporting to the board.
• B. The PLM oversees regulatory compliance and reporting, acting as the compliance liaison.
• C. The PLM is primarily responsible for loan origination volume targets.
• D. The PLM only handles IT security and has no governance role.

Answer: (B)

The main idea here is governance and oversight. The PLM serves as the compliance liaison to the company’s board and owners, ensuring the organization stays aligned with regulatory requirements and internal controls. This means the PLM oversees regulatory compliance, tracks changes in laws and rules, ensures policies and procedures meet those requirements, and coordinates reporting so the board has a clear view of risk and compliance status. It’s about accountability and communication with leadership, not about hitting loan volume targets or handling only IT security. Those other duties may exist in the organization, but they don’t capture the PLM’s governance-focused role of keeping the board informed and ensuring the company operates within the regulatory framework.