Certified Revenue Cycle Representative (CRCR) Practice Exam

Who typically reports to the board of directors regarding compliance?

1. A) Chief Human Resources Officer

2. B) Chief Financial Officer

3. C) Chief Compliance Officer

4. D) Chief Operations Officer

The correct answer is: C) Chief Compliance Officer

The Chief Compliance Officer (CCO) is responsible for overseeing and managing compliance issues within an organization. This role includes ensuring that the company adheres to regulatory requirements and internal policies. The CCO's responsibilities often involve reporting to the board of directors about compliance matters, including updates on compliance programs, training, assessments of risk, and any issues or violations that may arise. Reporting to the board is critical for maintaining transparency and ensuring that the organization's compliance strategies are effective and aligned with the overall governance framework. The CCO serves as a key advisor to the board on compliance-related risks and strategies, thereby fostering a culture of compliance within the organization. The other roles mentioned, such as those in human resources, finance, or operations, typically focus on their specific domains—managing personnel issues, overseeing financial matters, or managing day-to-day operations—rather than specifically addressing compliance issues at the board level. This distinction highlights the specialized nature of the compliance function within an organization, underscoring the importance of the Chief Compliance Officer's role in maintaining legal and regulatory adherence.