CCM Risk Management and Compliance 4

Question 1

A force majeure clause in a commercial contract is intended to:

Accepted Answer

Excuse non-performance caused by extraordinary events beyond a party's control

Answer

Force majeure clauses relieve a party of contractual obligations when performance is prevented by unforeseeable, extraordinary events outside their control.

Question 2

The 'risk appetite' of an organization is best described as:

Accepted Answer

The amount and type of risk the organization is willing to accept in pursuit of its objectives

Answer

Risk appetite defines the boundaries of acceptable risk-taking aligned with the organization's strategy and stakeholder expectations.

Question 3

A company discovers it is unknowingly doing business with an entity on the OFAC Specially Designated Nationals (SDN) list. The MOST immediate action should be:

Accepted Answer

Halt transactions, freeze assets as required, and report to OFAC

Answer

Upon discovering an SDN match, organizations must immediately freeze assets, cease transactions, and file a report with OFAC to avoid severe penalties.

Question 4

Which risk treatment option involves purchasing insurance?

Accepted Answer

Risk transfer

Answer

Purchasing insurance transfers the financial consequences of a risk to an insurer in exchange for a premium payment.

Question 5

A compliance program's effectiveness is BEST measured by:

Accepted Answer

Reduction in compliance incidents, audit findings, and employee awareness scores

Answer

Effective compliance programs are measured by outcomes — fewer violations, lower audit findings, and higher employee understanding — not inputs.

(CCM) Certified Cash Manager Practice Test

(CCM) Certified Cash Manager Practice Test

CCM Risk Management and Compliance 4