CCT Risk Management & Internal Controls 4

Question 1

What is the primary purpose of a compliance risk register?

Accepted Answer

To catalog identified risks along with their likelihood, impact, and control status

Answer

A risk register is a centralized record that captures identified risks, their assessed severity, assigned owners, current controls, and remediation status.

Question 2

Which of the following best describes 'operational risk' in a compliance context?

Accepted Answer

The risk arising from inadequate internal processes, people, systems, or external events

Answer

Operational risk encompasses losses resulting from failed internal processes, human error, system failures, or external disruptions.

Question 3

A board's audit committee receives a report showing that corrective actions from an internal audit finding have not been completed on schedule. This situation most directly threatens which risk management principle?

Accepted Answer

Risk response accountability

Answer

Risk response accountability requires that assigned owners take timely corrective action; failure to do so undermines the entire control remediation process.

Question 4

An organization decides to exit a particular line of business because the compliance risks are too high to manage cost-effectively. This represents which risk strategy?

Accepted Answer

Risk avoidance

Answer

Risk avoidance involves eliminating an activity or exposure entirely so the associated risk no longer exists for the organization.

Question 5

Which of the following is an example of a preventive control designed to reduce compliance risk?

Accepted Answer

Requiring management approval before a new vendor is onboarded

Answer

Preventive controls act before a risk event occurs; requiring approval before onboarding a vendor stops noncompliant vendors from entering the system.

(CCT) Certified Compliance Technician Practice Test

(CCT) Certified Compliance Technician Practice Test

CCT Risk Management & Internal Controls 4