After a Compliance Officer Develops a Base of Knowledge of Regulations

question 31

Multiple Choice

After a compliance officer develops a base of knowledge of regulations, he or she must begin the art of applying regulations in a risk management environment. Which of the following is NOT out of a few things to be kept in mind when determining what to do FIRST?

• A) Think practically about your role as an advisor. Involve the business units in the decision process rather than making decisions for them
• B) Calculate the institution's consolidated risk profile
• C) Make sure you understand the level of risk the bank will tolerate, so decisions do not exceed this limit
• D) Add value by analyzing regulatory requirements for the business units before you present proposed or final rules or solutions

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Definitions:

Collective Good

Benefits or values that are shared and accessible by all members of a given community, often exemplified by public goods like clean air and public parks.

Partner Constrained

A situation in relationships where one partner limits the choices or actions of the other, often leading to power imbalances.

Albert Ellis

A prominent 20th-century psychologist who developed Rational Emotive Behavior Therapy (REBT), a form of psychotherapy that focuses on identifying and changing irrational beliefs.

ABC Theory

A concept in psychology that suggests that a person's belief (B) about an event (A) affects their consequent emotional and behavioral responses (C).