BCI Regulatory Compliance & Legal Framework 2

Question 1

Under the Sarbanes-Oxley Act (SOX), which section specifically requires management to assess and report on internal controls over financial reporting?

Accepted Answer

Section 404

Answer

SOX Section 404 mandates that management assess and report on the effectiveness of internal controls over financial reporting annually.

Question 2

Which U.S. federal regulation primarily governs business continuity requirements for federally insured depository institutions?

Accepted Answer

FFIEC Business Continuity Planning Booklet

Answer

The FFIEC Business Continuity Planning Booklet provides supervisory guidance specifically for federally insured depository institutions' BC programs.

Question 3

A company discovers that a contractual obligation conflicts with a new state privacy law. What is the FIRST step the BC manager should take?

Accepted Answer

Escalate to legal counsel for guidance on compliance hierarchy

Answer

Legal counsel must determine which obligation takes precedence and advise on remediation steps before any action is taken.

Question 4

The EU's Network and Information Security (NIS2) Directive requires entities to report significant incidents within how many hours of detection?

Accepted Answer

24 hours

Answer

NIS2 requires an early warning notification to the relevant authority within 24 hours of becoming aware of a significant incident.

Question 5

Which legal concept holds a parent company responsible for the BC failures of its subsidiaries when those failures cause third-party harm?

Accepted Answer

Vicarious liability

Answer

Vicarious liability can make a parent company legally responsible for the acts or omissions of entities under its control.

(BCI) Business Continuity Institute Certification Practice Test

(BCI) Business Continuity Institute Certification Practice Test

BCI Regulatory Compliance & Legal Framework 2