Certified Regulatory Compliance Manager (CRCM) — Question 87

A bank has a large mortgage department as well as a high HMDA error rate. An expensive software program could automate the process, but the business unit manager does not want to purchase the software because of its expense. Though it is not as efficient, the manager prefers to make some improvements to the manual process, add some more robust monitoring procedures, and opt not to purchase the software. What should the compliance professional do?

Answer options

• A. Elevate the issue to a higher authority to force the mortgage department unit to purchase the software
• B. Nothing; the compliance professional's job is done with the completed research
• C. Document the fact that the level of risk present with manual systems is acceptable to the mortgage department business unit
• D. Write a memo to the president of the bank that explains the risk assessment for this area

Correct answer: C

Explanation

The correct answer is C because it acknowledges that the business unit has assessed the risk and deemed it acceptable, which is essential for compliance documentation. Option A is incorrect as forcing a purchase may not be feasible or effective. Option B is wrong since the compliance professional has ongoing responsibilities to ensure risks are managed. Option D, while informative, does not align with the compliance professional's role in documenting the business unit's acceptance of risk.