CCB Board Reporting & Governance 2

Question 1

A compliance officer is preparing a board report on third-party risk. Which metric is MOST critical to include?

Accepted Answer

Percentage of vendors that completed due diligence assessments

Answer

Percentage of vendors completing due diligence assessments directly measures risk management effectiveness for board oversight.

Question 2

Which governance principle requires that board members receive compliance reports in advance of meetings?

Accepted Answer

Timely and accurate information

Answer

The governance principle of timely and accurate information ensures directors can make informed decisions by reviewing materials before meetings.

Question 3

A board audit committee asks for a 'heat map' in the compliance report. What does this typically display?

Accepted Answer

Risks plotted by likelihood and impact

Answer

A risk heat map visually represents risks on a matrix of likelihood versus impact to help the board prioritize oversight.

Question 4

Under the Three Lines of Defense model, which line is responsible for presenting compliance findings directly to the board?

Accepted Answer

Third line (internal audit)

Answer

Internal audit, the third line, provides independent assurance and typically reports findings directly to the board or audit committee.

Question 5

A compliance report to the board should include a 'regulatory change log.' What is the PRIMARY purpose of this log?

Accepted Answer

To track new and pending regulations affecting the organization

Answer

A regulatory change log keeps the board informed of evolving legal requirements that may require strategic or operational adjustments.

(CCB) Certified Compliance and Business Specialist Practice Test