CRA Risk Culture & Stakeholder Communication Flashcards
6 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRA Risk Culture & Stakeholder Communication flashcards as text
Risk culture within an organization is best defined as:
Answer: The shared values, attitudes, and behaviors that shape how risk is identified and managed
Risk culture encompasses the organization's collective mindset, norms, and behaviors around risk-taking and management, influencing decisions at every level.
The 'Three Lines of Defense' model assigns risk management responsibility in which structure?
Answer: Business Units → Risk/Compliance Functions → Internal Audit
The Three Lines of Defense model has business units (1st line) owning risk, risk and compliance functions (2nd line) providing oversight, and internal audit (3rd line) providing independent assurance.
Which communication practice is most effective for a CRA communicating risk findings to a non-technical executive audience?
Answer: Translating complex risk metrics into business impact using plain language and visuals
Effective risk communication to executives requires simplifying technical findings into clear business language that highlights impact, likelihood, and recommended actions.
A 'risk champion' within an organization's business unit primarily serves to:
Answer: Promote risk awareness and act as a liaison between the business and risk function
Risk champions embed risk awareness in their business unit, bridging the gap between frontline staff and the centralized risk management function.
Tone from the top in risk culture refers to:
Answer: Senior leadership's visible commitment to ethical behavior and sound risk management
Tone from the top means that senior leadership's words and actions set the standard for the organization's risk culture and ethical behavior.
Risk escalation protocols are designed to ensure that:
Answer: Significant risk events and emerging threats are promptly communicated to appropriate decision-makers
Escalation protocols define clear pathways for reporting material risks upward through the organization so that timely, informed decisions can be made.