Regulatory Frameworks & Compliance Standards Flashcards

Which scenario best illustrates a conflict of interest that a compliance program should address?

Answer: A procurement officer approves a contract with a vendor owned by a family member

A conflict of interest exists when a personal relationship or financial interest could improperly influence a business decision, such as awarding a contract to a relative's company.

The NIST Cybersecurity Framework (CSF) organizes cybersecurity activities into which five core functions?

Answer: Identify, Protect, Detect, Respond, Recover

The NIST CSF's five core functions are Identify, Protect, Detect, Respond, and Recover, providing a strategic view of cybersecurity risk management.

Under the False Claims Act, a qui tam relator (whistleblower) who files a successful lawsuit against a government contractor may receive what percentage of the government's recovery?

Answer: 15-30%

The False Claims Act allows qui tam relators to receive between 15% and 30% of the government's recovery depending on the circumstances of the case.

A financial institution's Customer Identification Program (CIP) under the USA PATRIOT Act must collect which minimum set of information from individual customers?

Answer: Name, date of birth, address, and identification number

CIP regulations require collection of name, date of birth, address, and an identification number (such as SSN for U.S. persons) for individual customers.

Which principle distinguishes a rules-based compliance approach from a principles-based compliance approach?

Answer: Rules-based compliance requires adherence to specific detailed requirements while principles-based relies on general standards and judgment

Rules-based compliance specifies exact requirements to follow, while principles-based compliance sets broad standards and relies on organizations to exercise judgment in meeting them.

Under OSHA's General Duty Clause (Section 5(a)(1)), employers are required to do which of the following?

Answer: Furnish a workplace free from recognized hazards likely to cause death or serious physical harm

The General Duty Clause requires employers to provide a workplace free from recognized hazards causing or likely to cause death or serious physical harm to employees.

A company's compliance program uses 'tone at the top' as a foundational element. What does this concept primarily refer to?

Answer: Senior leadership's commitment to ethical conduct setting the cultural standard for the organization

Tone at the top refers to the ethical atmosphere that senior leadership creates through their words, actions, and commitment to compliance, which cascades throughout the organization.