CRCM Exam - Compliance Risk
Management 2025/2026 Exam Questions
and Answers | 100% Solved
Mitigation strategies for managing compliance risk - 🧠ANSWER
✔✔Predictive and detective automated and manual
Inherent Risk - 🧠ANSWER ✔✔Risk before controls are applied
Residual Risk - 🧠ANSWER ✔✔Risk after controls are applied
Risk measurement - 🧠ANSWER ✔✔Technique for determining whether
risks are controlled to a point within management's tolerance for the risk
Formalized risk assessments - 🧠ANSWER ✔✔Assessment of inherent risk,
residual risk, quantity and quality of risk, as well as trends and direction
Three lines of defense - 🧠ANSWER ✔✔1st line - Business unit level
2nd line - governance oversight
3rd - internal or External audit
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,Compliance management system - 🧠ANSWER ✔✔The banks framework to
manage regulatory compliance responsibilities
Elements for Mitigating Compliance Risk - 🧠ANSWER ✔✔1. Written
Program
2. Research and interpret regulations
3. Testing the program and performance
4. Coordination of Regulatory Exams
5. Leadership of Compliance training programs
6. Advising internal partners
Written Compliance Program - 🧠ANSWER ✔✔A comprehensive document
summarizing key components of the CMS including roles & responsibilities
and compliance related P & P
Change Management Process - 🧠ANSWER ✔✔Process to:
1. Research regulatory questions
2. Rank solutions as low, moderate or high
3. Track regulatory proposals
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,4. Implement final regulatory rules
Risk Assessment components - 🧠ANSWER ✔✔1. Identify risks
2. Measure risk of non-compliance through inherent and residual risks
3. Document controls
4. Monitor risks to ensure appropriate management
5. Report risks
6. Independently evaluate risks
Key Risk Indicators - 🧠ANSWER ✔✔Changes to:
1. Products and services
2. Systems and automation status
3. P & P
4. Transaction volume & size
5. Personnel issues
6. Management experience
7. Dependences on other departments
8. Size & complexity of the bank's operations
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 9. Locations of branches & affiliates
Key performance indicators - 🧠ANSWER ✔✔1. Fines & penalties
2. Customer complaints
3. Regulatory criticism from regulator or internal or external auditors
4. Contracts & service level agreement violations
Risk ranking - 🧠ANSWER ✔✔1. Establish the exposure and likelihood of
each identified compliance risk at the inherent and residual levels
2. Establish a risk map by ranking the risks by their combined exposure
and likelihood rankings
Exposure - 🧠ANSWER ✔✔The extent of potential damage
Likelihood - 🧠ANSWER ✔✔The probability that an event will occur and the
potential damage will take place
Risk trend - 🧠ANSWER ✔✔The direction of risk and probable change to
risk over the next 12 months
Risk dependencies - 🧠ANSWER ✔✔Other areas of the bank or other
external parties that the business unit must rely on to control risk
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
Management 2025/2026 Exam Questions
and Answers | 100% Solved
Mitigation strategies for managing compliance risk - 🧠ANSWER
✔✔Predictive and detective automated and manual
Inherent Risk - 🧠ANSWER ✔✔Risk before controls are applied
Residual Risk - 🧠ANSWER ✔✔Risk after controls are applied
Risk measurement - 🧠ANSWER ✔✔Technique for determining whether
risks are controlled to a point within management's tolerance for the risk
Formalized risk assessments - 🧠ANSWER ✔✔Assessment of inherent risk,
residual risk, quantity and quality of risk, as well as trends and direction
Three lines of defense - 🧠ANSWER ✔✔1st line - Business unit level
2nd line - governance oversight
3rd - internal or External audit
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,Compliance management system - 🧠ANSWER ✔✔The banks framework to
manage regulatory compliance responsibilities
Elements for Mitigating Compliance Risk - 🧠ANSWER ✔✔1. Written
Program
2. Research and interpret regulations
3. Testing the program and performance
4. Coordination of Regulatory Exams
5. Leadership of Compliance training programs
6. Advising internal partners
Written Compliance Program - 🧠ANSWER ✔✔A comprehensive document
summarizing key components of the CMS including roles & responsibilities
and compliance related P & P
Change Management Process - 🧠ANSWER ✔✔Process to:
1. Research regulatory questions
2. Rank solutions as low, moderate or high
3. Track regulatory proposals
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,4. Implement final regulatory rules
Risk Assessment components - 🧠ANSWER ✔✔1. Identify risks
2. Measure risk of non-compliance through inherent and residual risks
3. Document controls
4. Monitor risks to ensure appropriate management
5. Report risks
6. Independently evaluate risks
Key Risk Indicators - 🧠ANSWER ✔✔Changes to:
1. Products and services
2. Systems and automation status
3. P & P
4. Transaction volume & size
5. Personnel issues
6. Management experience
7. Dependences on other departments
8. Size & complexity of the bank's operations
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 9. Locations of branches & affiliates
Key performance indicators - 🧠ANSWER ✔✔1. Fines & penalties
2. Customer complaints
3. Regulatory criticism from regulator or internal or external auditors
4. Contracts & service level agreement violations
Risk ranking - 🧠ANSWER ✔✔1. Establish the exposure and likelihood of
each identified compliance risk at the inherent and residual levels
2. Establish a risk map by ranking the risks by their combined exposure
and likelihood rankings
Exposure - 🧠ANSWER ✔✔The extent of potential damage
Likelihood - 🧠ANSWER ✔✔The probability that an event will occur and the
potential damage will take place
Risk trend - 🧠ANSWER ✔✔The direction of risk and probable change to
risk over the next 12 months
Risk dependencies - 🧠ANSWER ✔✔Other areas of the bank or other
external parties that the business unit must rely on to control risk
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
