CGRC Compliance Programs 5

Question 1

What is the primary purpose of conducting a third-party compliance due diligence review before entering a business relationship?

Accepted Answer

To identify and mitigate compliance risks the third party may introduce

Answer

Third-party due diligence identifies compliance risks — such as FCPA violations, sanctions exposure, or data privacy risks — that could be introduced into the organization through the business relationship.

Question 2

Under the Foreign Corrupt Practices Act (FCPA), which defense allows a company to avoid liability for payments made to foreign officials?

Accepted Answer

Facilitating payments for routine governmental actions (limited exception)

Answer

The FCPA contains a narrow exception for facilitating payments made to expedite or secure the performance of routine, non-discretionary governmental actions.

Question 3

A compliance program's 'speak up' culture is BEST reinforced by which organizational practice?

Accepted Answer

Leadership visibly acting on reports and protecting reporters from retaliation

Answer

When leadership demonstrably acts on compliance reports and protects reporters from retaliation, employees gain confidence that speaking up is safe and worthwhile.

Question 4

Which element of a compliance program specifically addresses ensuring that disciplinary measures are applied consistently?

Accepted Answer

The enforcement and discipline component

Answer

The enforcement and discipline component ensures that violations are consistently identified, investigated, and sanctioned, which deters future misconduct.

Question 5

An organization's compliance program review reveals that its policies have not been updated in three years despite several regulatory changes. This MOST directly indicates a failure in which program element?

Accepted Answer

Regulatory change management and policy maintenance

Answer

Regulatory change management ensures that policies and procedures are updated when laws or regulations change; failure to update reflects a breakdown in this process.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Compliance Programs 5