CCM Risk Management and Compliance 3

Question 1

A residual risk is best defined as the risk that remains after:

Accepted Answer

Application of controls and mitigation measures

Answer

Residual risk is the level of risk remaining after controls and mitigation strategies have been applied to the inherent risk.

Question 2

Which international standard provides a framework specifically for anti-bribery management systems?

Accepted Answer

ISO 37001

Answer

ISO 37001 specifies requirements for establishing, implementing, and maintaining an anti-bribery management system.

Question 3

A 'whistle-blower' policy in a compliance program is designed primarily to:

Accepted Answer

Provide a safe channel for employees to report suspected violations without retaliation

Answer

Whistle-blower policies create protected reporting channels, encouraging employees to surface misconduct without fear of retaliation.

Question 4

In contract risk management, a 'limitation of liability' clause is designed to:

Accepted Answer

Cap the maximum financial exposure either party bears under the contract

Answer

A limitation of liability clause sets a ceiling on damages recoverable under the contract, protecting parties from open-ended financial exposure.

Question 5

Regulatory compliance risk refers to the risk that an organization will suffer penalties due to:

Accepted Answer

Violating laws, regulations, or industry codes

Answer

Regulatory compliance risk arises when an organization fails to adhere to applicable laws, regulations, or standards, leading to fines, sanctions, or reputational damage.

(CCM) Certified Cash Manager Practice Test

(CCM) Certified Cash Manager Practice Test

CCM Risk Management and Compliance 3