Preview Questions Risk Management Counsel | Role Specific Skill

Question 1: Which of the following is an example of a primary source of legal research used in risk management?

Which action should you take?

Choose only one option

Case law decisions

Law review articles

Textbooks

Online legal blogs

Question 2: What is the impact of a lack of standardized compliance policies across different departments?

Which action should you take?

Choose only one option

It ensures flexibility and allows departments to handle compliance on their own

It leads to quicker decision-making, ignoring regulatory concerns

It creates inconsistencies, increases risks, and makes the organization vulnerable to non-compliance

It streamlines operations and reduces administrative overhead

Question 3: How does a Risk Management Counsel use administrative law in legal research?

Which action should you take?

Choose only one option

Administrative law provides financial analysis tools for managing legal risk

Administrative law only concerns public sector entities and is irrelevant to private risk management

Administrative law regulates the actions of government agencies, and understanding it helps identify compliance risks and administrative penalties

Administrative law is used only for managing employee disputes, not regulatory compliance

Question 4: How does a Risk Management Counsel address conflicting internal and external compliance requirements?

Which action should you take?

Choose only one option

By adhering strictly to external requirements without considering internal operational needs

By focusing solely on internal policies and disregarding external requirements

By finding a balance, aligning internal policies with external requirements, and seeking legal advice for resolution

By ignoring both internal and external compliance requirements until the conflict escalates

Question 5: What is the role of "statutory interpretation" in assessing legal risk, and how should it be applied?

Which action should you take?

Choose only one option

Statutory interpretation is secondary to following the legal text and should be avoided if the regulation seems clear

Rely on prior case law to interpret statutes without considering the legislative intent or changes

Focus only on how statutes apply in narrow cases, ignoring broader interpretations that may impact legal strategy

Statutory interpretation clarifies ambiguities in the law, which helps predict outcomes and manage legal risks effectively

Question 6: What is the primary purpose of a "due diligence" report in legal documentation?

Which action should you take?

Choose only one option

To assess financial risks and liabilities of a potential investment

To ensure compliance with local business laws

To verify the legitimacy of a client's business operations

To establish the legal framework for a contract