CIG Risk Management & Compliance 2

Question 1

Which risk assessment methodology assigns numerical probabilities to potential outcomes to quantify the expected impact of a risk event?

Accepted Answer

Quantitative risk analysis

Answer

Quantitative risk analysis uses numerical values and statistical techniques to calculate the probability and monetary impact of risk events.

Question 2

An inspector general discovers that a program office bypassed required internal controls citing a time-sensitive emergency. What is the FIRST step the IG should take?

Accepted Answer

Verify whether an emergency waiver process exists and was followed

Answer

Before concluding a violation occurred, the IG should determine whether an authorized emergency exception or waiver process exists and whether it was properly invoked.

Question 3

Under OMB Circular A-123, what is the primary purpose of management's assessment of internal control?

Accepted Answer

To provide reasonable assurance that federal programs achieve objectives and safeguard assets

Answer

OMB Circular A-123 requires agencies to assess internal controls to provide reasonable assurance over operations, reporting, and compliance objectives.

Question 4

Which term describes the risk that remains after management implements controls to mitigate an identified risk?

Accepted Answer

Residual risk

Answer

Residual risk is the exposure that persists after mitigating controls are applied, distinguishing it from inherent risk (pre-control exposure).

Question 5

A compliance program is considered effective when it does which of the following?

Accepted Answer

Detects, prevents, and corrects violations while promoting an ethical culture

Answer

An effective compliance program combines preventive, detective, and corrective elements within a culture of integrity—not a guarantee of zero violations.

(CIG) Certified Inspector General Practice Test

(CIG) Certified Inspector General Practice Test

CIG Risk Management & Compliance 2