Exam CRCM topic 1 question 89 discussion

Actual exam question from ABA's CRCM

Question #: 89
Topic #: 1

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?

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

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Suggested Answer: C 🗳️

by Cam22 at March 15, 2024, 2:57 a.m.

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Cam22

4 months ago

Selected Answer: C

C. Document the fact that the level of risk present with manual systems is acceptable to the mortgage department business unit. As a compliance professional, it's important to document decisions and assessments made by the business units, even if they are not in alignment with the most efficient or risk-mitigating solutions. This ensures transparency and accountability within the organization. However, it's also essential to continue monitoring the situation and provide guidance if risks escalate or circumstances change. Elevating the issue to higher authority or writing a memo to the president of the bank should only be considered if there are significant regulatory or risk concerns that cannot be adequately addressed through the chosen approach.

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Exam CRCM topic 1 question 89 discussion

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Cam22

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