Certified Regulatory Compliance Manager (CRCM) — Question 67

Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:

Answer options

• A. Appropriate recognition and financial reporting of income, expenses, assets, and liabilities
• B. Appropriate treatment of losses associated with these products
• C. Assessment of the adequacy of its internal controls and risk mitigation activities
• D. Before entering into a contract, the bank must obtain the customer's written affirmative election to enter into the contract and written acknowledgement of the receipt of the disclosures

Correct answer: A, B, C

Explanation

Options A, B, and C are essential components of effective risk management and control processes as they directly relate to financial reporting, loss treatment, and internal controls. Option D, while important for customer consent, does not pertain to the core risk management processes required for DCCs and DSAs.