Board & Executive Communication Flashcards
7 cards from real CCCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Board & Executive Communication flashcards as text
A whistleblower complaint alleges misconduct by the CEO. The CCO should report this FIRST to:
Answer: The independent directors or audit committee, bypassing the CEO
When the alleged wrongdoer is the CEO, the CCO must bypass that individual and report directly to independent board members.
Board materials prepared by the compliance function should generally be distributed how far in advance of a board meeting?
Answer: Five to seven days before the meeting to allow meaningful review
Distributing materials five to seven days in advance enables directors to read, reflect, and formulate questions before the meeting.
The 'three lines of defense' model, when communicated to the board, assigns compliance primarily to which line?
Answer: Second line — compliance, risk management, and legal functions
The second line of defense encompasses compliance, risk management, and legal functions that provide oversight of the first line.
Which metric is MOST useful for communicating the health of a compliance culture to the board?
Answer: Percentage of employees completing ethics training combined with hotline utilization trends
Training completion rates combined with reporting channel utilization are behavioral indicators that reflect culture health, not just structural compliance.
When presenting a sensitive government subpoena to the board, the CCO should coordinate PRIMARILY with:
Answer: Outside counsel and the audit committee chair before any broader disclosure
Government subpoenas require immediate coordination with outside counsel and audit committee leadership to manage legal risk and privilege.
A new board director with no compliance background asks the CCO to explain why a regulatory fine was classified as 'low risk' in the annual report. The CCO's BEST response is:
Answer: Explain the risk classification criteria, the fine's magnitude relative to thresholds, and remediation status
New directors deserve clear explanations of risk classification methodology to perform their oversight function effectively.
A compliance officer presenting to the board should ideally conclude with:
Answer: A clear summary of key risks, decisions needed, and proposed next steps
Ending with clear decisions needed and next steps focuses board attention and drives actionable outcomes from compliance presentations.