CRMA CRMA - Certification in Risk Management Assurance Emerging Risks and Technology Questions and Answers 3

Question 1

Which risk concept describes the potential for interconnected risks to amplify each other in ways that are not apparent when risks are assessed in isolation?

Accepted Answer

Risk aggregation or compounding risk — where multiple risks interact to produce an outcome more severe than the sum of individual risks

Answer

Risk aggregation recognizes that risks do not exist independently and that interconnections can produce compounding effects exceeding individual risk estimates.

Question 2

An organization faces increasing risk from ransomware attacks. In assessing this risk under ERM, what is the MOST critical factor to evaluate in the organization's resilience?

Accepted Answer

The adequacy of tested data backup and recovery capabilities, including recovery time objectives aligned with business continuity requirements

Answer

Ransomware resilience depends fundamentally on the ability to restore operations quickly from clean backups, making recovery testing the most critical assurance area.

Question 3

Which of the following BEST describes the risk management challenge unique to disruptive innovation risks?

Accepted Answer

They are difficult to quantify in traditional risk models because their likelihood and impact are highly uncertain until the disruption is already underway

Answer

Disruptive innovation risks are inherently uncertain and evolve rapidly, making them poorly suited to traditional probability-impact models used in standard risk registers.

Question 4

When the audit committee asks internal audit to provide assurance over the organization's ERM program's coverage of emerging risks, what should the internal auditor assess?

Accepted Answer

Whether the risk identification process includes structured mechanisms for capturing emerging risks and whether the risk register is updated as new risks are identified

Answer

Assurance over emerging risk coverage evaluates whether the organization's risk identification process is designed to capture new and evolving risks systematically.

Question 5

Privacy-related risks have significantly increased for US organizations. Which regulatory development has MOST directly driven this as an enterprise risk priority?

Accepted Answer

The proliferation of state-level privacy laws such as the California Consumer Privacy Act (CCPA) alongside increasing FTC enforcement of data protection practices

Answer

CCPA and similar state privacy laws, combined with FTC enforcement activity, have elevated data privacy to a board-level enterprise risk in US organizations.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA CRMA - Certification in Risk Management Assurance Emerging Risks and Technology Questions and Answers 3