RCC Risk Management and Internal Controls

Question 1

What is the main objective of risk management in a compliance program?

Accepted Answer

Prevent noncompliance and legal exposure

Answer

Increase sales revenue

Answer

Reduce employee benefits

Answer

Improve marketing strategies

Question 2

Which of the following is an example of an internal control?

Accepted Answer

Segregation of duties

Answer

Performance reviews

Answer

Company branding

Answer

Training on company history

Question 3

Why is it important to regularly monitor internal controls?

Accepted Answer

To confirm effectiveness and adapt to changes

Answer

To reduce the number of employees

Answer

To improve graphic design

Answer

To increase tax deductions

Question 4

What is a key component of a risk assessment?

Accepted Answer

Severity and likelihood of risk

Answer

Advertising reach

Answer

Brand popularity

Answer

Product pricing

Question 5

Which document typically outlines a company’s risk tolerance?

Accepted Answer

Risk management policy

Answer

Marketing plan

Answer

Employee directory

Answer

Press release

Question 6

Which activity is crucial for effective internal control evaluation?

Accepted Answer

Internal auditing

Answer

Employee onboarding

Answer

Website updates

Answer

Customer outreach