nerdexam
ACAMS

CAMS · Question #787

CAMS Question #787: Real Exam Question with Answer & Explanation

The correct answer is A. Ensure the jurisdiction risks and other relevant factors have been taken into consideration in the. The most effective strategy is to ensure that jurisdictional and other relevant risks are assessed through the Enterprise-Wide Risk Assessment (EWRA), and that any residual risks fall within the corporation's defined risk appetite. This structured, risk-based approach supports in

Question

A multinational corporation is considering expanding into a new market with a history of political instability and corruption. Which strategy would be most effective in mitigating reputational risk from a financial crime perspective associated with such an expansion?

Options

  • AEnsure the jurisdiction risks and other relevant factors have been taken into consideration in the
  • BPartnering with established local businesses to leverage their knowledge and connections while
  • CEnsuring the company has strong ties with local government officials to influence policy and avoid
  • DCommitting to open communication, ethical practices, and community engagement to build trust
  • EMinimizing the company's direct presence in the country to reduce exposure to potential risks

Explanation

The most effective strategy is to ensure that jurisdictional and other relevant risks are assessed through the Enterprise-Wide Risk Assessment (EWRA), and that any residual risks fall within the corporation's defined risk appetite. This structured, risk-based approach supports informed decision- making and protects against reputational damage related to financial crime.

Community Discussion

No community discussion yet for this question.

Full CAMS Practice