Exam CRCM topic 1 question 88 discussion

D, page 16.

For the compliance professional facing the situation of a new home equity line of credit product being launched imminently, the first step should prioritize identifying potential compliance and regulatory risks associated with offering the new product. This proactive approach is crucial for ensuring that the product aligns with relevant laws and regulations, thus safeguarding the bank against potential legal, financial, and reputational damages. Option D, "Perform a risk assessment to determine the bank's level of risk in offering this new product," is the correct first action. A risk assessment will help identify compliance issues, regulatory requirements, and any other potential risks associated with the new product. Understanding these risks is foundational for guiding the development of legal documents, disclosures, and training programs. It also positions the compliance professional to advise the bank's leadership effectively on how to mitigate these risks.