CRA Risk Dashboard & Heat Maps 3

Question 1

What is the purpose of a risk velocity indicator on a risk dashboard?

Accepted Answer

To capture how fast a risk is moving toward or away from its impact threshold

Answer

Risk velocity measures the speed at which a risk is developing or escalating, helping managers prioritize emerging threats before they materialize.

Question 2

In a 5x5 risk matrix, how many total cells exist and what is the maximum possible risk score if likelihood and impact are each scored 1–5?

Accepted Answer

25 cells; maximum score 25

Answer

A 5x5 matrix has 25 cells, and multiplying the maximum scores of 5 (likelihood) × 5 (impact) yields a maximum risk score of 25.

Question 3

Which technique helps prevent 'heat map inflation,' where too many risks are rated as high?

Accepted Answer

Applying forced ranking or calibration workshops across risk owners

Answer

Calibration workshops and forced ranking ensure that risk owners apply consistent scoring standards, reducing the bias toward over-rating all risks as high.

Question 4

A Key Risk Indicator (KRI) on a dashboard shows a value at 95% of its threshold. What action should this trigger?

Accepted Answer

Amber alert status and escalation to risk management for review

Answer

A reading near the threshold (often the amber zone) should trigger a management review before the red threshold is breached.

Question 5

What distinguishes an inherent risk rating from a residual risk rating on a heat map?

Accepted Answer

Inherent risk is the exposure before controls; residual risk reflects exposure after controls are applied

Answer

Inherent risk captures the raw exposure before any mitigating controls, while residual risk represents remaining exposure after controls are factored in.

(CRA) Certified Risk Analyst Practice Test

(CRA) Certified Risk Analyst Practice Test

CRA Risk Dashboard & Heat Maps 3