Preview Questions Compliance Officer | Role Specific Skill

Question 1: What is the primary objective of risk appetite statements in a financial institution?

Which action should you take?

Choose only one option

Standardize customer acquisition processes

Define the acceptable level of risk for achieving objectives

Minimize all possible risks

Eliminate the need for internal audits

Question 2: In the context of Breach Notification Laws, which of the following is required if there is an unauthorized access to personal financial data?

Which action should you take?

Choose only one option

Notify only the regulatory authorities

Only notify individuals if the breach involves financial loss

Do not notify if the breach involves internal employees

Notify affected individuals and regulatory authorities within a specified timeframe

Question 3: What is the purpose of MiFID II in the European financial markets?

Which action should you take?

Choose only one option

Improve market transparency

Facilitate cross-border trade

Enforce capital requirements

Streamline audit processes

Question 4: Under GDPR (General Data Protection Regulation), which of the following is a key requirement for financial institutions when documenting customer data?

Which action should you take?

Choose only one option

Sharing customer data only with regulatory authorities

Ensuring the data is processed in a lawful, transparent, and secure manner

Reporting customer information to external vendors

Storing all data in a public server for easy access

Question 5: Which law mandates financial institutions in the U.S. to establish a Customer Identification Program (CIP)?

Which action should you take?

Choose only one option

Fair Credit Reporting Act

Bank Secrecy Act

Gramm-Leach-Bliley Act

Sarbanes-Oxley Act

Question 6: Which of the following is not a component of the Basel III framework?

Which action should you take?

Choose only one option

Leverage Ratio Requirement

Transaction-Based Risk Requirements

Liquidity Risk Management

Market Risk Capital Requirements