CEP Risk Analysis & Regulatory Compliance

Question 1

What is the purpose of risk analysis in energy procurement?

Accepted Answer

Identify and mitigate threats

Answer

Ignore potential risks

Answer

Increase exposure

Answer

Avoid planning

Question 2

What is regulatory compliance?

Accepted Answer

Following laws and regulations

Answer

Ignoring regulations

Answer

Evading compliance

Answer

Overlooking policies

Question 3

Which risk relates to sudden price changes in energy markets?

Accepted Answer

Market price risk

Answer

Credit risk

Answer

Operational risk

Answer

Liquidity risk

Question 4

What is the role of compliance audits?

Accepted Answer

Verify adherence and improve

Answer

Ignore compliance

Answer

Increase violations

Answer

Bypass regulations

Question 5

Which tool helps manage regulatory compliance?

Accepted Answer

Compliance management software

Answer

Manual spreadsheets only

Answer

Ignore tracking

Answer

Random checks

Question 6

What is operational risk in energy procurement?

Accepted Answer

Process or system failures

Answer

Market price changes

Answer

Credit default

Answer

Liquidity shortages

Question 7

How can energy buyers mitigate price risk?

Accepted Answer

Futures contracts and hedging

Answer

Ignoring market trends

Answer

Spot buying only

Answer

Avoid contracts

Question 8

What does 'due diligence' involve in compliance?

Accepted Answer

Thorough risk and regulatory assessment

Answer

Skipping assessments

Answer

Ignoring regulations

Answer

Rushing procurement

Question 9

Why is documentation important in regulatory compliance?

Accepted Answer

Provides evidence and supports audits

Answer

Avoids transparency

Answer

Hides non-compliance

Answer

Reduces accountability