RCMS Risk Assessment & Internal Controls 4

Question 1

Under the COSO ERM framework, which category of objectives focuses on the efficiency and effectiveness of the organization's operations?

Accepted Answer

Operations objectives

Answer

Operations objectives in COSO ERM address the efficiency and effectiveness of the entity's operations, including performance and profitability goals.

Question 2

A company transfers its cybersecurity risk exposure by purchasing a cyber-liability insurance policy. Which risk response strategy does this represent?

Accepted Answer

Risk transfer

Answer

Purchasing insurance shifts the financial consequences of a risk event to a third party (the insurer), which is the risk transfer strategy.

Question 3

Which element of a risk appetite statement specifies the maximum level of risk the organization is willing to take to achieve its strategic objectives?

Accepted Answer

Risk tolerance

Answer

Risk tolerance defines the acceptable variation in outcomes relative to objectives, representing the boundary the organization is willing to operate within.

Question 4

A compliance manager receives an alert that monthly transaction monitoring exceptions have risen 40% above baseline. This alert is triggered by which risk management tool?

Accepted Answer

A Key Risk Indicator breach

Answer

A KRI breach occurs when a metric crosses a pre-set threshold, signaling elevated risk and triggering management escalation.

Question 5

Which internal control is MOST effective at detecting unauthorized changes made to master vendor file data?

Accepted Answer

Conducting periodic reconciliations of vendor file changes to an authorized change log

Answer

Reconciling vendor file changes against an authorized log is a detective control that identifies unauthorized additions, deletions, or modifications after they occur.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS Risk Assessment & Internal Controls 4