CORES Risk Control Strategies & Mitigation Planning 3

Question 1

A risk mitigation plan should include a 'risk owner.' What is the PRIMARY responsibility of a risk owner?

Accepted Answer

Accountable for implementing and monitoring controls for an assigned risk

Answer

The risk owner is accountable for ensuring that specific risks are properly controlled and that mitigation actions are executed and tracked.

Question 2

In the CORES framework, a Key Risk Indicator (KRI) threshold breach should trigger which immediate action?

Accepted Answer

Escalation to the designated risk owner and review of the mitigation plan

Answer

A KRI breach signals that risk levels are approaching unacceptable limits, requiring prompt escalation and mitigation plan review.

Question 3

Which type of control is MOST effective at preventing data entry errors in a high-volume transaction environment?

Accepted Answer

Automated input validation and field constraints

Answer

Automated input validation prevents errors at the point of entry, making it a highly effective preventive control for high-volume environments.

Question 4

A cost-benefit analysis for a proposed control shows implementation costs exceed expected loss reduction by 3x. What should the risk manager recommend?

Accepted Answer

Consider alternative, less costly controls or formally accept the risk

Answer

When control costs significantly exceed expected benefits, risk managers should seek cost-effective alternatives or document formal risk acceptance.

Question 5

Scenario planning in risk mitigation is MOST useful for addressing which category of operational risk?

Accepted Answer

Low-frequency, high-severity tail risks with limited historical data

Answer

Scenario planning helps organizations prepare for rare but catastrophic events where statistical modeling alone is insufficient due to limited data.

(CORES) Certified Operational Risk Executive Specialist Practice Test

(CORES) Certified Operational Risk Executive Specialist Practice Test

CORES Risk Control Strategies & Mitigation Planning 3