Risk Dashboard & Heat Maps Flashcards
7 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 7 Risk Dashboard & Heat Maps flashcards as text
Which risk dashboard metric directly measures the effectiveness of risk treatment actions?
Answer: Residual risk trend over successive review periods
Tracking residual risk trends over time shows whether implemented controls are actually reducing exposure, indicating treatment effectiveness.
A heat map uses a multiplicative scoring model (L × I). Which scenario results in a higher risk score: Likelihood=2, Impact=5 or Likelihood=4, Impact=2?
Answer: Likelihood=2, Impact=5 scores higher (score 10 vs 8)
2×5=10 is greater than 4×2=8, so the high-impact, low-likelihood scenario scores higher under a multiplicative model.
What is a 'bow-tie' visualization in risk management, and how does it complement a heat map?
Answer: A diagram showing causes on the left, the risk event in the center, and consequences on the right, adding causal depth to heat map ratings
The bow-tie diagram maps threats and controls on either side of a central risk event, providing causal context that a heat map's score alone cannot convey.
Which data quality issue most commonly undermines the reliability of a risk heat map?
Answer: Inconsistent scoring criteria applied by different business units
When different raters apply different standards to likelihood and impact scores, heat map positions become incomparable and misleading.
An executive dashboard shows a risk that has moved from green to amber status. What is the most appropriate immediate response?
Answer: Notify the risk owner and schedule a management review to assess treatment options
An amber status change should trigger notification to the risk owner and a timely management review to determine whether existing controls need strengthening.
What is the primary benefit of using drill-down functionality in a risk dashboard?
Answer: It allows users to move from summary-level indicators to underlying risk details without switching systems
Drill-down capability lets users quickly investigate the root data behind any summary metric without leaving the dashboard environment.
Which risk aggregation approach is most appropriate when combining risks from multiple business units onto a single enterprise heat map?
Answer: Consolidating risks through a defined aggregation methodology that accounts for correlations and diversification
Proper enterprise aggregation considers correlations between risks and diversification effects, rather than simply summing or averaging independent scores.