Preview Questions Risk Management Counsel | Role Specific Skill

Question 1: How often should a law firm review and update its compliance policies according to best practices?

Which action should you take?

Choose only one option

After each client engagement

Annually

Quarterly

Every five years

Question 2: How should a Risk Management Counsel address "international compliance risks" in policy development for multinational organizations?

Which action should you take?

Choose only one option

Disregard international risks if the organization has operations in high-compliance jurisdictions

Rely solely on local legal teams to handle compliance in foreign markets without input from the central counsel

Research and integrate local regulatory requirements, create a global compliance framework, and monitor international legal trends

Assume that compliance risks are minimal in foreign markets and do not require attention in the global policy framework

Question 3: What is "regulatory risk" in the context of legal risk assessment?

Which action should you take?

Choose only one option

The risk that a client will not pay legal fees

The risk of non-compliance with industry best practices

The risk that a law firm might lose its legal license

The risk associated with failing to comply with laws and regulations

Question 4: What does a "severability clause" ensure in legal documentation?

Which action should you take?

Choose only one option

It specifies the enforcement of the contract's terms

It ensures that if part of the contract is unenforceable, the rest of the contract remains in force

It guarantees the execution of the contract without changes

It allows for extensions of the contract if necessary

Question 5: How should a Risk Management Counsel evaluate "third-party compliance" when assessing risk?

Which action should you take?

Choose only one option

Focus only on financial arrangements with third parties, ignoring compliance risks

Assume third-party vendors automatically comply with regulatory requirements without further checks

Ignore third-party compliance unless the company is directly responsible for their actions

Review third-party contracts, conduct due diligence, and ensure that third-party activities align with company compliance standards

Question 6: What is the "three lines of defense" model in risk management and compliance?

Which action should you take?

Choose only one option

A framework for calculating financial costs of non-compliance

The sequence in which court cases should be filed

A model for identifying, managing, and mitigating risks through first, second, and third lines of control

A method for assigning legal cases to the appropriate legal team