CCCP Risk Management & Internal Controls 4

Question 1

When conducting a risk assessment, 'velocity' refers to:

Accepted Answer

The speed at which a risk can impact the organization once triggered

Answer

Risk velocity measures how quickly a risk event will affect the organization after it occurs, which influences the urgency of the required response.

Question 2

A compliance program conducts periodic testing of controls to verify they are operating as designed. This activity is best described as:

Accepted Answer

Control operating effectiveness testing

Answer

Control operating effectiveness testing evaluates whether controls are actually functioning as intended in practice, not just whether they are well-designed on paper.

Question 3

Which COSO internal control component addresses the policies and procedures that help ensure management directives are carried out?

Accepted Answer

Control activities

Answer

Control activities are the specific policies and procedures that operationalize management's risk responses and ensure its directives are executed throughout the organization.

Question 4

A company implements job rotation for employees in sensitive financial roles. The PRIMARY compliance benefit of this practice is:

Accepted Answer

Detecting or deterring fraud by limiting prolonged control of one area

Answer

Mandatory job rotation reduces the opportunity for fraud by preventing any single employee from maintaining long-term, unchecked control over a sensitive function.

Question 5

Which term describes the process of ranking risks by their significance to prioritize compliance resources?

Accepted Answer

Risk prioritization

Answer

Risk prioritization is the process of ranking identified risks by their relative significance (likelihood × impact) to focus limited compliance resources on the most critical areas.

(CCCP) Certified Corporate Compliance Professional Practice Test

(CCCP) Certified Corporate Compliance Professional Practice Test

CCCP Risk Management & Internal Controls 4