CIG Risk Management & Compliance

Question 1

What is the primary goal of risk management?

Accepted Answer

Identify and mitigate risks

Answer

The primary goal of risk management is to proactively identify potential threats and vulnerabilities that could impact an organization's objectives. Once identified, the process focuses on developing and implementing strategies to mitigate or reduce the likelihood and impact of these risks. This systematic approach helps protect assets, ensure operational continuity, and achieve strategic goals by minimizing adverse events.

Question 2

Which compliance activity ensures adherence to laws and regulations?

Accepted Answer

Answer

Policy enforcement is a critical compliance activity that ensures an organization adheres to established laws, regulations, and internal policies. It involves actively implementing, monitoring, and upholding these rules throughout the organization's operations. This consistent application and oversight prevent violations, maintain ethical standards, and protect the organization from legal and reputational consequences.

Question 3

What is a risk assessment?

Accepted Answer

Evaluate risk likelihood and impact

Answer

A risk assessment is a fundamental process within risk management that systematically identifies potential risks an organization faces. Its core purpose is to analyze each identified risk by evaluating both the probability of it occurring (likelihood) and the potential consequences if it does (impact). This evaluation helps organizations prioritize risks and allocate resources effectively for mitigation strategies.

Question 4

Which control type reduces risk exposure?

Accepted Answer

Preventive controls

Answer

Preventive controls are designed to stop errors, irregularities, or unauthorized actions from occurring in the first place. By implementing measures such as segregation of duties, access restrictions, or authorization procedures, they proactively reduce the likelihood of a risk event. This forward-looking approach is highly effective in minimizing an organization's exposure to potential harm before it materializes.

Question 5

Why is compliance training important?

Accepted Answer

Educate on policies

Answer

Compliance training is essential because it educates employees about the laws, regulations, and internal policies relevant to their roles and the organization's operations. By ensuring staff understand their responsibilities and the ethical standards expected, it helps prevent violations and fosters a culture of compliance. This knowledge protects the organization from legal penalties and reputational damage.

(CIG) Certified Inspector General Practice Test

(CIG) Certified Inspector General Practice Test

CIG Risk Management & Compliance