CORES Process Mapping & Control Assessment 4

Question 1

In a process risk assessment, 'inherent complexity' of a process step is considered because higher complexity typically:

Accepted Answer

Increases the likelihood of human error and the need for stronger controls

Answer

Complex process steps have more decision points and dependencies, increasing error probability and requiring correspondingly robust controls.

Question 2

Which process mapping symbol conventionally represents a decision point where alternative process paths diverge?

Accepted Answer

Diamond

Answer

The diamond shape in standard flowcharting conventions denotes a decision point with branching outcomes (yes/no or alternative conditions).

Question 3

A firm maps its loan origination process and finds that the same employee approves and books a loan. This represents which fundamental control weakness?

Accepted Answer

Lack of segregation of duties (SoD)

Answer

Having one person perform both the approval and booking functions eliminates the check inherent in segregation of duties, enabling undetected fraud or errors.

Question 4

When assessing control sustainability, which factor is MOST important to evaluate for manual controls?

Accepted Answer

Staff turnover in roles responsible for control execution

Answer

High staff turnover in control-owner roles directly threatens control sustainability because knowledge and execution quality degrade with frequent personnel changes.

Question 5

A 'bottleneck' identified in a process map creates operational risk primarily because it:

Accepted Answer

Concentrates throughput through a single constrained resource, creating delay and failure risk

Answer

Bottlenecks create single-point concentration risk where backlog, errors, and processing failures accumulate under volume or stress conditions.

(CORES) Certified Operational Risk Executive Specialist Practice Test

(CORES) Certified Operational Risk Executive Specialist Practice Test

CORES Process Mapping & Control Assessment 4