CCM Risk Management and Compliance 2

Question 1

A commercial manager discovers that a supplier has a single-source dependency for a critical component. Which risk response strategy is MOST appropriate?

Accepted Answer

Mitigate by qualifying an alternative supplier

Answer

Qualifying an alternative supplier reduces single-source dependency and is a classic mitigation strategy for supply chain concentration risk.

Question 2

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments to a foreign government official is generally permissible?

Accepted Answer

Facilitating payments to expedite routine governmental actions

Answer

The FCPA provides a narrow exception for facilitating payments made to expedite routine, non-discretionary governmental actions, though many companies prohibit even these.

Question 3

A risk heat map plots risks on axes of probability and impact. A risk in the upper-right quadrant should be treated as:

Accepted Answer

High priority — immediate action required

Answer

Upper-right placement indicates both high probability and high impact, making the risk a top priority requiring immediate mitigation action.

Question 4

Which document formally records identified risks, their likelihood, impact, owners, and response plans?

Accepted Answer

Risk Register

Answer

A Risk Register is the primary tool for capturing, tracking, and managing all identified risks throughout the project or organization.

Question 5

A company's compliance team finds that an employee submitted false expense reports totaling $4,000. This is best classified as:

Accepted Answer

Operational risk — internal fraud

Answer

Internal fraud by an employee is a textbook operational risk event under frameworks such as Basel II/III.

(CCM) Certified Cash Manager Practice Test

(CCM) Certified Cash Manager Practice Test

CCM Risk Management and Compliance 2