CRA Risk Technology and Data Analytics

Question 1

What is the primary purpose of a Risk Information System (RIS)?

Accepted Answer

To centralize and manage risk data for reporting and analysis

Answer

To automate marketing campaigns

Answer

To replace human risk managers

Answer

To eliminate all operational risks

Question 2

What does a risk dashboard primarily provide to executives?

Accepted Answer

Real-time visibility into key risk exposures and indicators

Answer

Detailed audit logs

Answer

Employee performance metrics

Answer

IT infrastructure status reports

Question 3

Why is data quality critical in risk analytics?

Accepted Answer

It ensures accurate and reliable risk measurement and reporting

Answer

It improves marketing effectiveness

Answer

It reduces employee turnover

Answer

It increases customer satisfaction scores

Question 4

What does 'data lineage' refer to in risk management?

Accepted Answer

The documented journey of data from source to final report

Answer

The age of stored data

Answer

The geographic origin of data

Answer

The encryption method applied to data

Question 5

What is the primary function of Key Risk Indicators (KRIs) in a risk technology system?

Accepted Answer

To provide early warning signals of increasing risk exposure

Answer

To measure employee productivity levels

Answer

To calculate financial returns on investments

Answer

To monitor customer purchasing behavior

Question 6

In risk management, what does a heat map display?

Accepted Answer

The relative likelihood and impact of identified risks

Answer

Server temperature and hardware status

Answer

Customer geographic distribution

Answer

Employee workload and capacity