CRA Strategic Risk and Governance 3

Question 1

A Certified Risk Architect is asked to embed risk culture into the organization. Which action has the GREATEST long-term impact?

Accepted Answer

Ensuring senior leaders visibly model risk-aware decision-making and reward escalation

Answer

Culture is shaped primarily by leadership behavior and incentive systems rather than policies or one-time training events.

Question 2

Enterprise Risk Management (ERM) frameworks like COSO ERM 2017 emphasize integrating risk management with:

Accepted Answer

Strategy setting and performance management

Answer

COSO ERM 2017 explicitly links risk management to strategy setting and performance to enhance value creation and preservation.

Question 3

A board committee is reviewing the organization's risk taxonomy. The PRIMARY purpose of a risk taxonomy is to:

Accepted Answer

Provide a consistent language and classification system for risk across the enterprise

Answer

A risk taxonomy establishes a common vocabulary and category structure that enables consistent identification, aggregation, and reporting across the enterprise.

Question 4

Horizon scanning in strategic risk governance is used primarily to:

Accepted Answer

Identify emerging threats and opportunities before they materialize into significant risks

Answer

Horizon scanning is a forward-looking technique that identifies weak signals of emerging risks before they escalate.

Question 5

Under COSO ERM 2017, which of the following is classified as a component of 'Strategy and Objective-Setting'?

Accepted Answer

Business context analysis and risk appetite definition

Answer

COSO ERM 2017 places business context analysis and risk appetite definition within the Strategy and Objective-Setting component.

(CRA) Certified Risk Architect Practice Test

(CRA) Certified Risk Architect Practice Test

CRA Strategic Risk and Governance 3