CCEP Risk Assessment & Monitoring 4

Question 1

What is the primary purpose of a compliance 'heat map'?

Accepted Answer

To visually represent risks by likelihood and impact for prioritization

Answer

A compliance heat map plots risks on a grid of likelihood versus impact, enabling quick visual identification of the highest-priority risks.

Question 2

Which of the following BEST describes the 'three lines of defense' model as applied to compliance risk monitoring?

Accepted Answer

Business operations, compliance/risk functions, and internal audit provide layered oversight

Answer

The three lines model assigns risk ownership to business units (first line), compliance and risk management (second line), and internal audit (third line) for layered oversight.

Question 3

A company's compliance risk assessment reveals a high-impact risk with a very low likelihood of occurrence. What is the MOST appropriate response?

Accepted Answer

Implement cost-effective monitoring controls and document the risk

Answer

Low-likelihood but high-impact risks warrant cost-proportionate monitoring and documentation to ensure they are watched and can be acted upon if conditions change.

Question 4

When assessing corruption risk under the FCPA, which factor most significantly increases inherent risk for a multinational company?

Accepted Answer

Operating in countries with high corruption perception index scores

Answer

Countries with high corruption scores significantly increase the inherent risk of FCPA violations due to the prevalence of bribery in those environments.

Question 5

Which element is ESSENTIAL for a risk monitoring program to be considered effective under the DOJ's compliance program evaluation framework?

Accepted Answer

The program must be continuously evaluated and improved based on performance data

Answer

The DOJ expects compliance programs to be living systems that evolve based on testing, monitoring results, and lessons learned.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Risk Assessment & Monitoring 4