CCB Regulatory Compliance & Risk Management 4

Question 1

A compliance officer discovers that an employee self-reported a potential policy violation before it caused any harm. What is the BEST initial response?

Accepted Answer

Investigate the report, protect the whistleblower, and remediate the issue

Answer

Best practice is to investigate thoroughly, protect the reporting employee from retaliation, and use the finding to remediate the root cause.

Question 2

Under the Dodd-Frank Act, which agency has authority to bring enforcement actions against covered financial institutions for unfair, deceptive, or abusive acts or practices (UDAAP)?

Accepted Answer

The CFPB

Answer

The Consumer Financial Protection Bureau (CFPB), created by Dodd-Frank, has primary authority to enforce UDAAP standards against financial institutions.

Question 3

What is 'inherent risk' in the context of risk assessments?

Accepted Answer

Risk that exists naturally in a process or activity before any controls are implemented

Answer

Inherent risk is the level of risk in the absence of any controls or mitigating factors, representing the raw exposure to a particular threat.

Question 4

Which international standard provides guidance on anti-bribery management systems for organizations?

Accepted Answer

ISO 37001

Answer

ISO 37001 specifies requirements for establishing, implementing, and maintaining an anti-bribery management system to help organizations prevent and detect bribery.

Question 5

A Key Risk Indicator (KRI) is BEST described as:

Accepted Answer

A forward-looking metric that signals the potential increase in risk exposure

Answer

KRIs are predictive metrics that provide early warning signals of increasing risk, enabling proactive management before risks materialize into losses.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Regulatory Compliance & Risk Management 4