CRMA Evaluating Risk Culture 2

Question 1

Which metric is MOST useful when quantitatively assessing risk culture strength across business units?

Accepted Answer

Near-miss reporting rates compared across units

Answer

Near-miss reporting rates reveal willingness to surface risk events, a direct behavioral indicator of risk culture strength.

Question 2

When conducting a risk culture survey, which design element most reduces social desirability bias in responses?

Accepted Answer

Guaranteed anonymity for respondents

Answer

Guaranteed anonymity reduces respondents' tendency to answer in ways they believe are socially acceptable rather than truthfully.

Question 3

A CRMA practitioner notices that formal risk policies are strong but actual employee behavior contradicts them. This gap is best described as:

Accepted Answer

Espoused values versus values-in-use

Answer

The gap between stated organizational values and actual behavior reflects the difference between espoused values and values-in-use.

Question 4

Which internal audit activity provides the STRONGEST evidence of tone at the top regarding risk culture?

Accepted Answer

Observing whether executives attend and actively engage in risk committee meetings

Answer

Direct behavioral observation of executive engagement in risk governance provides stronger evidence than documents or reported metrics alone.

Question 5

An organization rewards employees who exceed revenue targets regardless of the risk methods used. What risk culture problem does this indicate?

Accepted Answer

Incentive structures that undermine risk-aware behavior

Answer

When incentive systems reward results without regard to risk behavior, they send cultural signals that undermine the organization's stated risk values.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA Evaluating Risk Culture 2