CRO Regulatory Compliance & Corporate Policies 3

Question 1

Which regulation requires U.S. public companies to maintain adequate internal controls over financial reporting and have management assess them annually?

Accepted Answer

Sarbanes-Oxley Act Section 404

Answer

SOX Section 404 mandates that management assess and report on the effectiveness of internal controls over financial reporting annually.

Question 2

An institution's written policies conflict with current regulatory guidance issued after policy creation. What is the CRO's priority action?

Accepted Answer

Update policies to align with current regulatory guidance and notify affected staff

Answer

Regulatory guidance supersedes outdated internal policies; the CRO must update policies promptly and communicate changes to impacted personnel.

Question 3

Under the Bank Secrecy Act, a Suspicious Activity Report (SAR) must generally be filed within how many days of detecting a suspicious transaction?

Accepted Answer

30 calendar days

Answer

FinCEN requires SARs to be filed within 30 calendar days of the date the suspicious activity was initially detected.

Question 4

Which concept describes the risk that arises when a company's actions violate laws, regulations, or ethical standards, potentially damaging its reputation?

Accepted Answer

Compliance risk

Answer

Compliance risk is the risk of legal or regulatory sanctions, material financial loss, or reputational harm from failure to comply with laws or standards.

Question 5

The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies from doing what?

Accepted Answer

Bribing foreign government officials to obtain or retain business

Answer

The FCPA prohibits U.S. persons and businesses from bribing foreign officials for business advantage.

(CRO) Chief Risk Officer Certification Practice Test

(CRO) Chief Risk Officer Certification Practice Test

CRO Regulatory Compliance & Corporate Policies 3