CRA Risk Identification & Assessment 2

Question 1

Which risk identification technique involves subject matter experts anonymously providing estimates that are refined through multiple rounds of feedback?

Accepted Answer

Delphi Technique

Answer

The Delphi Technique uses anonymous expert input over iterative rounds to converge on a consensus risk estimate without group-think bias.

Question 2

A risk architect is assessing operational risk in a financial institution. Which component of the Basel III framework specifically addresses operational risk capital requirements?

Accepted Answer

Pillar 1 – Minimum Capital Requirements

Answer

Pillar 1 of Basel III sets minimum capital requirements that explicitly include operational risk alongside credit and market risk.

Question 3

When using a Risk Breakdown Structure (RBS), what is its primary purpose in risk identification?

Accepted Answer

To hierarchically categorize risk sources for systematic identification

Answer

An RBS hierarchically categorizes risk sources, ensuring comprehensive coverage of all potential risk areas during identification.

Question 4

Which type of risk assessment approach assigns numerical probabilities and monetary values to risk outcomes?

Accepted Answer

Quantitative risk assessment

Answer

Quantitative risk assessment uses numerical probabilities and financial values to produce objective, measurable risk metrics.

Question 5

An organization discovers that a single vendor supplies components to three critical business units, creating concentration risk. Which risk identification method would most likely have surfaced this dependency?

Accepted Answer

Dependency Mapping

Answer

Dependency mapping visualizes relationships between suppliers, processes, and business units, surfacing concentration and single-point-of-failure risks.

(CRA) Certified Risk Architect Practice Test

(CRA) Certified Risk Architect Practice Test

CRA Risk Identification & Assessment 2