Certified Management Accountant Risk Management 4

Question 1

Which of the following is an operational risk rather than a financial risk?

Accepted Answer

A key supplier failing to deliver materials on time

Answer

Operational risk arises from failures in internal processes, people, or systems — such as supply chain disruptions.

Question 2

Value at Risk (VaR) measures:

Accepted Answer

The expected loss at a given confidence level over a specified period

Answer

VaR estimates the potential loss in portfolio value that will not be exceeded with a given probability over a defined time horizon.

Question 3

A risk register typically includes all of the following EXCEPT:

Accepted Answer

Insurance premium amounts paid

Answer

A risk register documents identified risks, their assessments, ownership, and responses — not accounting entries for insurance premiums.

Question 4

Which risk management concept involves creating multiple layers of controls so that if one fails, others remain?

Accepted Answer

Defense in depth

Answer

Defense in depth (or layered controls) ensures redundancy so that no single control failure creates a catastrophic exposure.

Question 5

When assessing the impact of a risk, which dimension is NOT typically considered?

Accepted Answer

The risk owner's personal career risk

Answer

Risk impact assessments focus on organizational dimensions — financial, operational, reputational, and regulatory — not personal career considerations.

Certified Management Accountant Practice Test

Certified Management Accountant Practice Test

Certified Management Accountant Risk Management 4