CRCM Exam - Compliance Risk Management
// // // // //
Exam Questions With Correct Answers
// // // // //
Mitigation /
/strategies /
/for /
/managing /
/compliance /
/risk //- //correct //answer(s) //✔✔ //Predictive //and //detective //automated //and //manual
Inherent //Risk //- //correct //answer(s) //✔✔ //Risk //before //controls //are //applied
Residual //Risk //- //correct //answer(s) //✔✔ //Risk //after //controls //are //applied
Risk /
/measurement //- /
/correct /
/answer(s) /
/✔✔ /
/Technique /
/for /
/determining /
/whether //risks //are //controlled //to //a //point //within //management's //tolerance //for //the //risk
Formalized /
/risk /
/assessments //- /
/correct /
/answer(s) /
/✔✔ /
/Assessment /
,/of /
/inherent //risk, //residual //risk, //quantity //and //quality //of //risk, //as //well //as //trends //and //direction
Three //lines //of //defense //- //correct //answer(s) //✔✔ //1st //line //- //Business //unit //level
2nd //line //- //governance //oversight
3rd //- //internal //or //External //audit
Compliance /
/management /
/system //- /
/correct /
/answer(s) //✔✔ //The //banks //framework //to //manage //regulatory //compliance //responsibilities
Elements //for //Mitigating //Compliance //Risk //- //correct //answer(s) //✔✔ //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 //- /
/correct /
/answer(s) /
/✔✔ //
A/
/comprehensive /
/document /
/summarizing /
/key /
,/components /
/of //the //CMS //including //roles //& //responsibilities //and //compliance //related //P //& //P
Change //Management //Process //- //correct //answer(s) //✔✔ //Process //to:
1. //Research //regulatory //questions
2. //Rank //solutions //as //low, //moderate //or //high
3. //Track //regulatory //proposals //
4. //Implement //final //regulatory //rules
Risk //Assessment //components //- //correct //answer(s) //✔✔ //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 //- //correct //answer(s) //✔✔ //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 //
9. //Locations //of //branches //& //affiliates
, Key //performance //indicators //- //correct //answer(s) //✔✔ //1. //Fines //& //penalties //
2. //Customer //complaints
3. //Regulatory //criticism //from //regulator //or //internal //or //external //auditors //
4. //Contracts //& //service //level //agreement //violations
Risk /
/ranking //- /
/correct /
/answer(s) /
/✔✔ /
/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 //- //correct //answer(s) //✔✔ //The //extent //of //potential //damage
Likelihood //- /
/correct /
/answer(s) /
/✔✔ //The //probability //that //an //event //will //occur //and //the //potential //damage //will //take //place
Risk /
/trend //- /
/correct /
/answer(s) /
/✔✔ //The //direction //of //risk //and //probable //change //to //risk //over //the //next //12 //months
// // // // //
Exam Questions With Correct Answers
// // // // //
Mitigation /
/strategies /
/for /
/managing /
/compliance /
/risk //- //correct //answer(s) //✔✔ //Predictive //and //detective //automated //and //manual
Inherent //Risk //- //correct //answer(s) //✔✔ //Risk //before //controls //are //applied
Residual //Risk //- //correct //answer(s) //✔✔ //Risk //after //controls //are //applied
Risk /
/measurement //- /
/correct /
/answer(s) /
/✔✔ /
/Technique /
/for /
/determining /
/whether //risks //are //controlled //to //a //point //within //management's //tolerance //for //the //risk
Formalized /
/risk /
/assessments //- /
/correct /
/answer(s) /
/✔✔ /
/Assessment /
,/of /
/inherent //risk, //residual //risk, //quantity //and //quality //of //risk, //as //well //as //trends //and //direction
Three //lines //of //defense //- //correct //answer(s) //✔✔ //1st //line //- //Business //unit //level
2nd //line //- //governance //oversight
3rd //- //internal //or //External //audit
Compliance /
/management /
/system //- /
/correct /
/answer(s) //✔✔ //The //banks //framework //to //manage //regulatory //compliance //responsibilities
Elements //for //Mitigating //Compliance //Risk //- //correct //answer(s) //✔✔ //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 //- /
/correct /
/answer(s) /
/✔✔ //
A/
/comprehensive /
/document /
/summarizing /
/key /
,/components /
/of //the //CMS //including //roles //& //responsibilities //and //compliance //related //P //& //P
Change //Management //Process //- //correct //answer(s) //✔✔ //Process //to:
1. //Research //regulatory //questions
2. //Rank //solutions //as //low, //moderate //or //high
3. //Track //regulatory //proposals //
4. //Implement //final //regulatory //rules
Risk //Assessment //components //- //correct //answer(s) //✔✔ //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 //- //correct //answer(s) //✔✔ //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 //
9. //Locations //of //branches //& //affiliates
, Key //performance //indicators //- //correct //answer(s) //✔✔ //1. //Fines //& //penalties //
2. //Customer //complaints
3. //Regulatory //criticism //from //regulator //or //internal //or //external //auditors //
4. //Contracts //& //service //level //agreement //violations
Risk /
/ranking //- /
/correct /
/answer(s) /
/✔✔ /
/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 //- //correct //answer(s) //✔✔ //The //extent //of //potential //damage
Likelihood //- /
/correct /
/answer(s) /
/✔✔ //The //probability //that //an //event //will //occur //and //the //potential //damage //will //take //place
Risk /
/trend //- /
/correct /
/answer(s) /
/✔✔ //The //direction //of //risk //and //probable //change //to //risk //over //the //next //12 //months
