CCEP Risk Assessment & Monitoring 3

Question 1

A company is expanding into a new country. Which risk assessment step should be completed FIRST?

Accepted Answer

Identify all applicable local laws and regulations

Answer

Identifying applicable local laws and regulations is the foundational step that informs all subsequent compliance planning in a new jurisdiction.

Question 2

Which metric is MOST useful for evaluating the effectiveness of a compliance monitoring program over time?

Accepted Answer

Trend analysis of compliance violations and near-misses

Answer

Tracking trends in violations and near-misses over time reveals whether the monitoring program is effectively reducing compliance failures.

Question 3

What is 'residual risk' in the context of compliance risk management?

Accepted Answer

Risk that remains after controls have been applied

Answer

Residual risk is the level of risk that persists after existing controls and mitigation measures have been implemented.

Question 4

A compliance team conducts 'stress testing' of its risk controls. What does this process evaluate?

Accepted Answer

How controls perform under adverse or extreme scenarios

Answer

Stress testing evaluates whether compliance controls would hold up under severe or unlikely scenarios, revealing hidden vulnerabilities.

Question 5

Third-party risk management in a compliance program primarily addresses which concern?

Accepted Answer

That third parties may expose the organization to compliance violations through their conduct

Answer

Third-party risk management ensures that vendors, suppliers, and partners do not create compliance liability for the organization through their own conduct or practices.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Risk Assessment & Monitoring 3