Regulatory Compliance Flashcards
7 cards from real COM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance flashcards as text
A supplier in your supply chain is found violating environmental regulations. What is the operations manager's best first step?
Answer: Conduct a supplier audit to assess the scope of non-compliance and develop a corrective action plan with the supplier
Auditing the supplier and collaborating on a corrective action plan addresses the root cause, preserves the relationship where possible, and demonstrates due diligence.
Which of the following is a key requirement of the Americans with Disabilities Act (ADA) for employers with 15 or more employees?
Answer: Provide reasonable accommodations to qualified individuals with disabilities unless it causes undue hardship
The ADA requires covered employers to provide reasonable accommodations for qualified employees or applicants with disabilities, balanced against an undue hardship standard.
What is 'regulatory risk' in operations management?
Answer: The potential for financial loss, operational disruption, or reputational damage resulting from non-compliance with laws and regulations
Regulatory risk encompasses fines, enforcement actions, operational shutdowns, and reputational harm that can result from failing to meet regulatory requirements.
Under EPA's Clean Air Act Title V, large stationary sources of air pollution must:
Answer: Obtain an operating permit that consolidates all applicable Clean Air Act requirements into a single document
Title V permits consolidate all federal, state, and local Clean Air Act requirements for major sources into one comprehensive operating permit.
What is the role of a compliance management system (CMS) in operations?
Answer: To provide a structured framework of policies, procedures, controls, and monitoring activities that ensure ongoing regulatory adherence
A CMS integrates policies, training, monitoring, and corrective action processes to systematically manage compliance obligations across the organization.
Which regulation governs the protection of financial data and privacy for customers of financial institutions in the United States?
Answer: The Gramm-Leach-Bliley Act (GLBA)
The Gramm-Leach-Bliley Act requires financial institutions to protect the privacy and security of customers' nonpublic personal financial information.
An operations manager implements a 'three lines of defense' model for compliance. What does the second line represent?
Answer: Risk management and compliance functions that oversee and support the first line's controls
In the three-lines model, the second line consists of compliance, risk, and legal functions that design frameworks, monitor controls, and advise the operational first line.