CCEP Ethics Program Management 4

Question 1

Which of the following BEST explains the concept of 'residual risk' in compliance program design?

Accepted Answer

The risk that remains after controls are applied

Answer

Residual risk is the level of risk that remains after the organization's controls and mitigating measures have been applied to the inherent risk.

Question 2

A pharmaceutical company's compliance program includes a 'No-Contact' policy for interactions with government payers. This policy is an example of which program element?

Accepted Answer

Preventive control

Answer

A No-Contact policy prevents prohibited interactions before they occur, making it a preventive control rather than a detective or corrective measure.

Question 3

When conducting third-party due diligence, which red flag should MOST concern a compliance officer evaluating a new distributor?

Accepted Answer

The distributor requests a higher-than-market commission in a high-corruption jurisdiction

Answer

An above-market commission request in a high-corruption environment is a classic red flag suggesting the extra margin may fund improper payments to officials.

Question 4

Which of the following is an example of a 'detective control' in a compliance program?

Accepted Answer

Conducting periodic audits of expense reports

Answer

Periodic audits of expense reports detect misconduct after the fact rather than preventing it, making them a detective control.

Question 5

A compliance program uses data analytics to flag unusual transaction patterns for review. This practice BEST supports which program function?

Accepted Answer

Proactive risk monitoring and detection

Answer

Using data analytics to identify anomalous patterns is a proactive monitoring technique that strengthens the program's detection capabilities.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Ethics Program Management 4