CCEP Risk Assessment & Monitoring 5

Question 1

Which scenario represents a failure of the 'monitoring' component of an effective compliance program?

Accepted Answer

Control deficiencies identified in testing are never remediated or tracked

Answer

Monitoring must include remediation tracking; failing to close identified control gaps renders the monitoring process ineffective.

Question 2

A compliance officer wants to assess the effectiveness of employee training as a risk control. Which method is MOST appropriate?

Accepted Answer

Measure post-training knowledge retention and track related incident rates

Answer

Measuring knowledge retention and linking training to incident trends provides evidence of whether training is actually reducing compliance risk.

Question 3

What risk is most directly associated with a compliance program that relies solely on self-reporting for incident detection?

Accepted Answer

Under-detection of violations due to fear of retaliation or lack of awareness

Answer

Self-reporting programs can miss violations when employees fear retaliation or do not recognize misconduct, making independent monitoring equally essential.

Question 4

When a compliance risk assessment reveals that a risk has been 'transferred,' what does this mean?

Accepted Answer

The financial or operational consequence of the risk has been shifted to a third party, such as through insurance

Answer

Risk transfer involves shifting the financial or operational burden of a risk to another party, most commonly through insurance or contractual arrangements.

Question 5

In the COSO ERM framework, which component most directly supports ongoing compliance risk monitoring?

Accepted Answer

Monitoring activities

Answer

The 'Monitoring Activities' component of COSO ERM encompasses ongoing evaluations and separate assessments that ensure controls remain effective over time.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Risk Assessment & Monitoring 5