CRA Cheat Sheet 2026

The 30 highest-yield CRA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is a Credit Default Swap (CDS) primarily used for in risk management? → Transferring credit risk to another party
2. A CRA professional encounters an unfamiliar situation while performing emerging & geopolitical risks duties. What is the most appropriate first action? → Consult relevant standards, guidelines, or a qualified supervisor before proceeding
3. Which credit enhancement technique involves a third party guaranteeing the debt obligations of a borrower? → Credit Guarantee
4. Which method is used for quantitative risk assessment? → Decision tree analysis
5. A CRA professional encounters an unfamiliar situation while performing regulatory capital requirements duties. What is the most appropriate first action? → Consult relevant standards, guidelines, or a qualified supervisor before proceeding
6. A CRA professional encounters an unfamiliar situation while performing erm & coso framework duties. What is the most appropriate first action? → Consult relevant standards, guidelines, or a qualified supervisor before proceeding
7. Which tool is commonly used to visually assess risks? → Risk matrix
8. During a liquidity stress event, which action is most likely to amplify systemic risk across the financial system? → Selling illiquid assets at fire-sale prices to generate immediate cash
9. What is a limitation of financial models? → They rely on assumptions and past data
10. Which document outlines the terms under which collateral is exchanged between two parties in an OTC derivatives transaction? → Credit Support Annex (CSA)
11. Which of the following is a fundamental principle of erm & coso framework as it applies to Certified Risk Analyst? → Systematic evaluation and adherence to established industry standards
12. The concept of 'through-the-cycle' (TTC) credit ratings differs from 'point-in-time' (PIT) ratings in that TTC ratings: → Represent long-run average credit quality and remain stable across economic cycles
13. What is the primary ethical obligation of a CRA professional when a conflict of interest arises during emerging & geopolitical risks activities? → Disclose the conflict to all relevant parties and recuse from the decision if necessary
14. Why are internal controls important? → To prevent fraud and ensure financial accuracy
15. Which behavioral bias can lead risk managers to underreport risk findings when communicating upward? → Organizational silence or 'shoot the messenger' culture
16. Which method uses historical data to simulate future risks? → Monte Carlo simulation
17. Which quality assurance method is most commonly applied in bcp & crisis scenario planning to verify that CRA professional standards are being met? → Structured audits, peer reviews, and performance metrics aligned with industry benchmarks
18. What is the purpose of risk identification? → To identify threats to objectives early
19. Why is documentation critical in compliance? → To support audits and demonstrate compliance
20. Which quality assurance method is most commonly applied in erm & coso framework to verify that CRA professional standards are being met? → Structured audits, peer reviews, and performance metrics aligned with industry benchmarks
21. What is ethical leadership in corporate governance? → Acting with integrity and fairness
22. Which of the following is a fundamental principle of risk appetite & tolerance frameworks as it applies to Certified Risk Analyst? → Systematic evaluation and adherence to established industry standards
23. Tone from the top in risk culture refers to: → Senior leadership's visible commitment to ethical behavior and sound risk management
24. Which governance mechanism ensures that the risk function maintains independence from business line pressures? → The Chief Risk Officer (CRO) having a direct reporting line to the board or CEO
25. Which model assesses the creditworthiness of borrowers? → Credit risk model
26. Under Basel III, the Leverage Ratio is designed to: → Provide a non-risk-based backstop to prevent excessive leverage
27. Which is a proactive risk mitigation strategy? → Avoidance
28. Why is stakeholder input important in risk assessment? → To provide valuable perspectives on risk
29. What is the purpose of a contingency plan? → To respond to risk events quickly
30. What does transparency mean in governance? → Open communication and clear disclosures