Risk Assessment & Monitoring Flashcards
7 cards from real CCEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment & Monitoring flashcards as text
A company is expanding into a new country. Which risk assessment step should be completed FIRST?
Answer: Identify all applicable local laws and regulations
Identifying applicable local laws and regulations is the foundational step that informs all subsequent compliance planning in a new jurisdiction.
Which metric is MOST useful for evaluating the effectiveness of a compliance monitoring program over time?
Answer: Trend analysis of compliance violations and near-misses
Tracking trends in violations and near-misses over time reveals whether the monitoring program is effectively reducing compliance failures.
What is 'residual risk' in the context of compliance risk management?
Answer: Risk that remains after controls have been applied
Residual risk is the level of risk that persists after existing controls and mitigation measures have been implemented.
A compliance team conducts 'stress testing' of its risk controls. What does this process evaluate?
Answer: How controls perform under adverse or extreme scenarios
Stress testing evaluates whether compliance controls would hold up under severe or unlikely scenarios, revealing hidden vulnerabilities.
Third-party risk management in a compliance program primarily addresses which concern?
Answer: That third parties may expose the organization to compliance violations through their conduct
Third-party risk management ensures that vendors, suppliers, and partners do not create compliance liability for the organization through their own conduct or practices.
Which scenario BEST illustrates an 'emerging risk' in compliance monitoring?
Answer: A new data privacy regulation enacted in a key market where the company operates
Emerging risks are new or evolving threats, such as recently enacted regulations, that have not yet been fully assessed or addressed.
How does a compliance program use 'leading indicators' differently from 'lagging indicators'?
Answer: Leading indicators signal potential future problems; lagging indicators reflect past outcomes
Leading indicators provide early warning of future compliance issues, while lagging indicators measure what has already occurred.