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CAMS · Question #875

CAMS Question #875: Real Exam Question with Answer & Explanation

The correct answer is D. Conducting a risk assessment. The first step in designing an effective controls framework using a risk-based approach is conducting a risk assessment. This identifies and evaluates inherent risks, providing the basis for determining which controls are necessary and how they should be prioritized.

Question

What is the first step in designing an effective controls framework using a risk-based approach?

Options

  • AEstablishing risk controls
  • BAssessing risk controls
  • COngoing risk monitoring
  • DConducting a risk assessment

Explanation

The first step in designing an effective controls framework using a risk-based approach is conducting a risk assessment. This identifies and evaluates inherent risks, providing the basis for determining which controls are necessary and how they should be prioritized.

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