CRA Risk Identification & Assessment Techniques 3

Question 1

A company uses historical loss data to estimate future risk exposures. Which quantitative technique does this best describe?

Accepted Answer

Actuarial analysis

Answer

Actuarial analysis uses historical loss data and statistical models to estimate the frequency and severity of future risk events, common in insurance and financial risk.

Question 2

In risk assessment, 'velocity' refers to:

Accepted Answer

How quickly a risk can impact the organization after it materializes

Answer

Velocity measures how rapidly a risk transitions from occurrence to impact, helping prioritize risks that leave little time for response.

Question 3

Which diagram maps out all possible causes of a risk event in a fishbone or Ishikawa structure?

Accepted Answer

Cause-and-effect diagram

Answer

A cause-and-effect (Ishikawa/fishbone) diagram visually maps potential root causes contributing to a risk event across categories like people, process, and technology.

Question 4

FMEA (Failure Mode and Effects Analysis) calculates a Risk Priority Number (RPN) by multiplying which three factors?

Accepted Answer

Severity, Occurrence, and Detection

Answer

FMEA's RPN = Severity × Occurrence × Detection, where higher scores indicate failure modes requiring priority corrective action.

Question 5

A risk analyst maps risks along their entire value chain from raw materials to end customer. This approach is called:

Accepted Answer

Value chain risk analysis

Answer

Value chain risk analysis identifies risks at each stage of the production and delivery process, exposing interdependencies and single points of failure.

(CRA) Certified Risk Analyst Practice Test

(CRA) Certified Risk Analyst Practice Test

CRA Risk Identification & Assessment Techniques 3