FREE CFM Risk Management & Compliance Questions and Answers

Question 1

What is risk management?

Accepted Answer

Identifying and controlling risks

Answer

Ignoring risks.

Answer

Increasing risks.

Answer

Avoiding compliance.

Question 2

What is compliance in finance?

Accepted Answer

Following laws and regulations

Answer

Ignoring laws.

Answer

Creating risks.

Answer

Breaking policies.

Question 3

Which of these is a common risk type?

Accepted Answer

Market risk

Answer

Ignoring risk.

Answer

Compliance risk.

Answer

No risk.

Question 4

What is risk mitigation?

Accepted Answer

Reducing risks

Answer

Ignoring risks.

Answer

Increasing risks.

Answer

Avoiding compliance.

Question 5

Why is regulatory compliance important?

Accepted Answer

To follow laws and avoid penalties

Answer

To ignore rules.

Answer

To increase risks.

Answer

To hide errors.

Question 6

What is the role of an internal auditor in compliance?

Accepted Answer

Assessing compliance

Answer

Creating risks.

Answer

Ignoring compliance.

Answer

Breaking laws.

Question 7

Which document outlines an organization's risk management policies?

Accepted Answer

Risk management framework

Answer

Annual report.

Answer

Budget plan.

Answer

Marketing plan.

Question 8

What is the first step in risk management?

Accepted Answer

Risk identification

Answer

Risk assessment.

Answer

Risk mitigation.

Answer

Risk monitoring.

Question 9

How does compliance reduce organizational risk?

Accepted Answer

By adhering to laws

Answer

By ignoring regulations.

Answer

By increasing risks.

Answer

By avoiding audits.