CSS Risk Management & Compliance 5

Question 1

Under the Federal Sentencing Guidelines for Organizations, which factor can MOST significantly reduce fines imposed on a company for criminal conduct?

Accepted Answer

Existence of an effective compliance and ethics program

Answer

The Federal Sentencing Guidelines recognize an effective compliance and ethics program as a major mitigating factor that can substantially reduce culpability scores and resulting fines.

Question 2

A senior specialist is reviewing an organization's risk register and notices that a risk's residual risk level still exceeds the organization's risk appetite after controls are applied. What is the APPROPRIATE next step?

Accepted Answer

Implement additional controls or escalate to leadership for a risk acceptance decision

Answer

When residual risk exceeds risk appetite, the organization must either apply additional controls to bring it within tolerance or escalate for a formal, documented risk acceptance decision by appropriate leadership.

Question 3

The California Consumer Privacy Act (CCPA) grants consumers the right to opt out of which specific business activity?

Accepted Answer

The sale of their personal information to third parties

Answer

CCPA grants California consumers the right to opt out of the sale of their personal information to third parties, requiring a 'Do Not Sell My Personal Information' link on covered businesses' websites.

Question 4

In ISO 31000:2018, risk is defined as the effect of uncertainty on objectives. The term 'effect' in this context can be:

Accepted Answer

Positive, negative, or both deviations from what is expected

Answer

ISO 31000 defines an effect of uncertainty as a deviation from the expected — which can be positive (opportunity), negative (threat), or both.

Question 5

A compliance officer discovers that an employee has been falsifying expense reports for two years. Under whistleblower protections established by Dodd-Frank, employees who report securities law violations to the SEC may receive:

Accepted Answer

A monetary award of 10-30% of sanctions over $1 million collected by the SEC

Answer

Dodd-Frank's whistleblower program entitles eligible whistleblowers to an award of 10% to 30% of monetary sanctions exceeding $1 million that result from their original information.

(CSS) Certified Senior Specialist Practice Test

(CSS) Certified Senior Specialist Practice Test

CSS Risk Management & Compliance 5