CCCP Board & Executive Communication 2

Question 1

When a compliance officer discovers a material regulatory violation, what is the MOST appropriate initial escalation path to the board?

Accepted Answer

Notify the audit committee chair first, then determine if full board disclosure is needed

Answer

The audit committee chair is the designated first contact for material compliance issues, enabling structured escalation and privilege protection.

Question 2

A CEO instructs the CCO to omit a pending DOJ investigation from the board's quarterly compliance report. The CCO should:

Accepted Answer

Refuse and escalate directly to the board's audit committee

Answer

The CCO has an independent duty to the board and cannot withhold material legal matters at an executive's direction.

Question 3

Which format is BEST suited for presenting a complex multi-jurisdiction compliance risk to a board with limited regulatory background?

Accepted Answer

A one-page heat map with tiered risk ratings and a brief executive summary

Answer

Heat maps with executive summaries communicate risk tiers efficiently and support board members in making informed decisions without legal expertise.

Question 4

The board requests real-time compliance metrics. The compliance officer should FIRST:

Accepted Answer

Assess data availability, accuracy, and reporting cadence feasibility before committing

Answer

Committing to metrics before validating underlying data integrity risks presenting inaccurate information to the board.

Question 5

During a board meeting, a director asks the CCO a question about a specific employee investigation. The CCO should:

Accepted Answer

Defer to counsel and offer to discuss in executive session to protect confidentiality

Answer

Active investigations require confidentiality protections; executive session with counsel preserves privilege and prevents prejudice.

(CCCP) Certified Corporate Compliance Professional Practice Test