ADRA Innovation & Change Management 4

Question 1

A debt relief company wants to introduce a new fee structure. Under the TSR, which fee method is permitted once a debt is settled?

Accepted Answer

A fee proportional to the settled debt's share of total enrolled debt, or a percentage of the amount saved

Answer

The TSR allows fees only after settlement and payment, calculated proportionally or as a percentage of savings.

Question 2

Which leadership behavior most strongly supports successful organizational change?

Accepted Answer

Leaders visibly modeling the new behaviors and communicating consistently

Answer

Visible sponsorship and consistent messaging from leaders drive employee adoption.

Question 3

A firm considers using machine learning to predict which creditors will accept settlements. What is a key ethical concern?

Accepted Answer

Ensuring the model does not produce unfair or discriminatory outcomes for clients

Answer

Predictive models must be monitored for bias and must not replace required consumer disclosures.

Question 4

What does 'change fatigue' refer to in a debt relief organization?

Accepted Answer

Employee exhaustion and disengagement caused by too many changes in a short period

Answer

Change fatigue occurs when the pace or volume of change overwhelms staff capacity.

Question 5

Before switching to a new third-party payment processor for client dedicated accounts, the firm should FIRST:

Accepted Answer

Conduct due diligence on the processor's independence, security, and regulatory compliance

Answer

Vendor due diligence ensures the account administrator is independent, secure, and compliant.

ADRA - Accredited Debt Relief Agent Practice Test