Board Reporting & Governance Flashcards
7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Board Reporting & Governance flashcards as text
A compliance officer is preparing a board report on third-party risk. Which metric is MOST critical to include?
Answer: Percentage of vendors that completed due diligence assessments
Percentage of vendors completing due diligence assessments directly measures risk management effectiveness for board oversight.
Which governance principle requires that board members receive compliance reports in advance of meetings?
Answer: Timely and accurate information
The governance principle of timely and accurate information ensures directors can make informed decisions by reviewing materials before meetings.
A board audit committee asks for a 'heat map' in the compliance report. What does this typically display?
Answer: Risks plotted by likelihood and impact
A risk heat map visually represents risks on a matrix of likelihood versus impact to help the board prioritize oversight.
Under the Three Lines of Defense model, which line is responsible for presenting compliance findings directly to the board?
Answer: Third line (internal audit)
Internal audit, the third line, provides independent assurance and typically reports findings directly to the board or audit committee.
A compliance report to the board should include a 'regulatory change log.' What is the PRIMARY purpose of this log?
Answer: To track new and pending regulations affecting the organization
A regulatory change log keeps the board informed of evolving legal requirements that may require strategic or operational adjustments.
Which situation represents a conflict of interest that must be disclosed in board governance?
Answer: A director voting on a contract with a company where their spouse is a senior executive
A director voting on a transaction involving a company where their spouse is a senior executive creates a direct conflict of interest requiring disclosure and recusal.
What does 'board independence' mean in the context of corporate governance?
Answer: A majority of directors have no material relationship with the company
Board independence means a majority of directors lack material relationships with the company, reducing bias in oversight of management.