CORES Process Mapping & Control Assessment 5

Question 1

A 'control owner' in operational risk governance is BEST defined as the individual who:

Accepted Answer

Is accountable for the ongoing performance and effectiveness of the control

Answer

The control owner bears ongoing accountability for ensuring the control continues to operate effectively, not merely the person who created it.

Question 2

A process that involves high-volume, repetitive transactions with low individual values MOST warrants which type of control approach?

Accepted Answer

Automated system controls with exception-based human review

Answer

High-volume, low-value repetitive processes are best controlled through automation with exception reporting, since manual review of every transaction is impractical.

Question 3

When conducting a process walkthrough, the operational risk practitioner discovers that staff follow an undocumented shortcut that bypasses a reconciliation step. The MOST appropriate immediate action is to:

Accepted Answer

Document the undocumented practice and assess the associated risk increase

Answer

The practitioner must first document what is actually happening and evaluate the risk implications before escalating or deciding on corrective action.

Question 4

A 'control rationalization' initiative in process mapping aims to:

Accepted Answer

Eliminate redundant, overlapping, or ineffective controls to improve efficiency without increasing risk

Answer

Control rationalization removes unnecessary or duplicative controls, reducing compliance burden while ensuring the remaining controls provide adequate risk coverage.

Question 5

In end-to-end process mapping, identifying 'value-added' versus 'non-value-added' steps helps operational risk practitioners because non-value-added steps often:

Accepted Answer

Represent unnecessary complexity that increases error risk without business benefit

Answer

Non-value-added steps add process complexity and error opportunity without contributing to the business outcome, making them prime targets for elimination or simplification.

(CORES) Certified Operational Risk Executive Specialist Practice Test

(CORES) Certified Operational Risk Executive Specialist Practice Test

CORES Process Mapping & Control Assessment 5