CORES Regulatory Compliance & Industry Standards 4

Question 1

A financial institution's BSA/AML compliance program must include all of the following EXCEPT:

Accepted Answer

Real-time transaction monitoring for all accounts

Answer

The five pillars of a BSA/AML program do not require real-time monitoring for all accounts; risk-based monitoring is the standard.

Question 2

Under the Federal Reserve's SR 11-7 guidance, model risk management requires that models be subject to:

Accepted Answer

Independent validation covering conceptual soundness, data quality, and ongoing monitoring

Answer

SR 11-7 requires independent model validation covering conceptual soundness, data integrity, and ongoing performance monitoring.

Question 3

Which regulation requires U.S. broker-dealers to implement a Business Continuity Plan (BCP) and update it annually?

Accepted Answer

FINRA Rule 4370

Answer

FINRA Rule 4370 requires broker-dealers to create and maintain a written BCP and provide summary disclosure to customers.

Question 4

The FFIEC Cybersecurity Assessment Tool (CAT) maps to which two frameworks?

Accepted Answer

NIST Cybersecurity Framework and FFIEC IT Examination Handbook

Answer

The FFIEC CAT aligns with the NIST Cybersecurity Framework and the FFIEC IT Examination Handbook to assess cyber maturity.

Question 5

Under GDPR, which role is responsible for ensuring that personal data processing activities comply with data protection law within an organization?

Accepted Answer

Data Protection Officer (DPO)

Answer

The Data Protection Officer (DPO) is the designated role under GDPR responsible for advising on compliance and acting as a contact for supervisory authorities.

(CORES) Certified Operational Risk Executive Specialist Practice Test

(CORES) Certified Operational Risk Executive Specialist Practice Test

CORES Regulatory Compliance & Industry Standards 4