CRMA Basic 3

Question 1

Which risk treatment option is most appropriate when a risk's likelihood and impact are both very low?

Accepted Answer

Accept the risk without additional controls

Answer

When both likelihood and impact are low, accepting the risk (retaining it without additional controls) is typically the most cost-effective response.

Question 2

What does 'inherent risk' represent in a risk assessment?

Accepted Answer

The risk that exists before any mitigating controls are considered

Answer

Inherent risk is the level of risk that exists before any controls or mitigating actions are in place.

Question 3

In a risk heat map, what do the axes typically represent?

Accepted Answer

Likelihood of occurrence and impact if it occurs

Answer

A risk heat map plots risks on a two-dimensional grid using likelihood (probability) on one axis and impact (consequence) on the other.

Question 4

Which of the following best describes 'risk culture' within an organization?

Accepted Answer

The shared values, beliefs, and behaviors related to risk awareness and management

Answer

Risk culture encompasses the shared values, norms, and behaviors that influence how employees at all levels identify, understand, and respond to risk.

Question 5

The COSO Internal Control – Integrated Framework identifies how many components of internal control?

Accepted Answer

Five

Answer

COSO's Internal Control – Integrated Framework consists of five components: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA Basic 3