CRA Risk Identification & Assessment 3

Question 1

A risk architect reviews a heat map showing risks plotted by likelihood and impact. A risk in the top-right quadrant should be treated how?

Accepted Answer

Prioritized for urgent risk response given high likelihood and high impact

Answer

Risks in the top-right quadrant of a heat map have both high likelihood and high impact, making them the highest priority for immediate risk response.

Question 2

Which statistical distribution is most commonly used to model the frequency of operational loss events in quantitative risk assessments?

Accepted Answer

Poisson distribution

Answer

The Poisson distribution is widely used to model the frequency of rare, discrete loss events over a fixed time period in operational risk modeling.

Question 3

What is the key difference between 'inherent risk' and 'residual risk'?

Accepted Answer

Inherent risk is the risk before controls, while residual risk is the risk remaining after controls are applied

Answer

Inherent risk is the raw exposure before any controls, while residual risk is what remains after existing controls and mitigations are factored in.

Question 4

During a bow-tie analysis, what does the 'tie' in the center represent?

Accepted Answer

The top event or hazardous event being analyzed

Answer

In bow-tie analysis, the central 'knot' represents the top event or hazard, with threats on the left and consequences on the right.

Question 5

Which risk identification method systematically examines each step in a process to identify what could go wrong and why?

Accepted Answer

Hazard and Operability Study (HAZOP)

Answer

HAZOP systematically examines each process step using guide words to identify deviations and potential hazards in complex operational systems.

(CRA) Certified Risk Architect Practice Test

(CRA) Certified Risk Architect Practice Test

CRA Risk Identification & Assessment 3