CCB Regulatory Compliance & Risk Management 5

Question 1

Which of the following is an example of a 'detective' control in an internal control framework?

Accepted Answer

Conducting monthly bank reconciliations to identify discrepancies

Answer

Detective controls, like bank reconciliations, are designed to identify errors or fraud after they have occurred, rather than preventing them.

Question 2

When performing third-party risk due diligence, which factor is MOST critical to evaluate for a vendor handling sensitive customer data?

Accepted Answer

The vendor's information security practices and data breach history

Answer

For vendors handling sensitive data, evaluating their information security posture and incident history is critical to assessing the risk they pose to your organization.

Question 3

A compliance program's effectiveness is BEST measured by:

Accepted Answer

A combination of output metrics, culture assessments, and compliance incident trends

Answer

Effective compliance measurement uses multiple indicators including qualitative culture measures and quantitative incident trends, not just lagging indicators like fines.

Question 4

The 'right of erasure' (also known as the 'right to be forgotten') under GDPR allows individuals to:

Accepted Answer

Request that their personal data be deleted under certain circumstances

Answer

GDPR Article 17 grants individuals the right to request deletion of their personal data when it is no longer necessary, consent is withdrawn, or processing is unlawful.

Question 5

Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of adverse action within how many days of receiving a completed credit application?

Accepted Answer

30 days

Answer

ECOA requires lenders to notify applicants of adverse action within 30 days of receiving a completed credit application.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Regulatory Compliance & Risk Management 5