Certified Regulatory Compliance Manager Exam Questions

Here you have the best ABA CRCM practice exam questions.

Some things you may want to keep in mind about this practice exam questions:

You have 315 total questions to study from
Each page has 5 questions, making a total of 63 pages
You can navigate through the pages using the buttons at the bottom
This questions were last updated on September 17, 2024

Question 1 of 315

To be effective, compliance risk management professionals must design a framework to ensure that bank management understands the risks and the steps that must be taken to mitigate them. The many roles compliance professionals fill incorporate risk management aspects including:

A.

Coordinating regulatory exams to explain risks to examiners

B.

Overseeing compliance training targeting higher risk areas

C.

Tracking regulatory proposals and final rules to understand new risks

D.

All of these

Correct Answer: D

Compliance risk management professionals must engage in all these activities to be effective. Coordinating regulatory exams ensures that they can communicate risks effectively to examiners, overseeing compliance training helps in targeting higher risk areas and educating staff on necessary precautions, and tracking regulatory proposals and final rules enables them to anticipate and understand new risks. Therefore, all these roles are essential components of the compliance risk management framework.

Question 2 of 315

They also embrace the concept of risk-based compliance management. They expect compliance management to be tailored to the bank, be it large or small, offering standard or specialty financial services, simple or complex products lines, and adjusted as appropriate for the customer base as that issued for the Bank

Secrecy Act, also establishes their expectations that a bank's program be risk based. Who are they?

A.

Outsourcing firms

B.

Foreign financial service providers

C.

Bank regulatory agencies

D.

Risk management organizations

Correct Answer: C

Bank regulatory agencies are responsible for establishing expectations and overseeing compliance management for banks. They are the ones who mandate that a bank's program must be risk-based, ensuring that compliance management is tailored to the bank's specific conditions such as size, services offered, product complexity, and customer base. These agencies enforce regulations like the Bank Secrecy Act to mitigate risks and promote legal and regulatory compliance within the banking sector.

Question 3 of 315

A compliance professional's responsibilities include all of the following EXCEPT:

A.

Understanding the business units operating environment and risk tolerance

B.

Performing risk assessments with the assistance of business units to determine current risk levels and risks associated with the bank's products, lines of business, customers, and locations, among other factors

C.

Working with business units to ensure prompt corrective action for any detected errors

D.

Assisting business lines with compliance training for employees, as needed

Correct Answer: A

A compliance professional must understand the business units' operating environment and risk tolerance to effectively perform their duties. Therefore, this is not an exception to their responsibilities. The primary role of a compliance professional involves evaluating risks, conducting assessments, ensuring corrective actions, and assisting with compliance training. Therefore, the correct answer is the option that is not typically within the purview of their responsibilities, which would be 'Understanding the business units operating environment and risk tolerance'.

Question 4 of 315

______________ should include basic elements designed to understand and mitigate risk. It usually includes:

Written program -

Compliance-related policies and procedures

A.

Tactical Compliance procedure

B.

Rank solution

C.

Compliance program

D.

None of these

Correct Answer: C

A compliance program should include basic elements designed to understand and mitigate risk. It usually includes a written program, compliance-related policies, and procedures. These components help ensure that the organization adheres to relevant laws and regulations, thereby minimizing the risk of legal or regulatory violations.

Question 5 of 315

In a compliance program, tactical compliance procedures should be integrated into business line procedures, such as how to deliver an Adverse Action Notice when an application is declined. In this case:

A.

Regulations should be applied consistently to procedures throughout the bank

B.

Revisions to procedures should be based on compliance expertise and not mere editing

C.

Providing solutions to mitigate any identified risk

D.

Assisting business units in developing or revising policies and procedures to reflect current regulatory requirements

Correct Answer: AD

In a compliance program, tactical compliance procedures should ensure that regulations are applied consistently throughout the bank to establish uniformity and adherence to laws. Moreover, assisting business units in developing or revising policies and procedures is crucial to align with current regulatory requirements, ensuring that the institution remains compliant and can effectively manage risks associated with non-compliance.