CRMA Risk Identification and Analysis 2

Question 1

Which risk identification technique involves systematically examining each component of a process to determine what could go wrong at each step?

Accepted Answer

Failure Mode and Effects Analysis (FMEA)

Answer

Root cause analysis

Answer

Delphi technique

Answer

Monte Carlo simulation

Question 2

A risk owner is best described as the individual who:

Accepted Answer

Has accountability for monitoring and responding to a specific risk

Answer

Approves the risk management budget

Answer

Identifies all risks in the enterprise risk register

Answer

Chairs the risk management committee

Question 3

In risk analysis, 'velocity' refers to:

Accepted Answer

How quickly a risk event could impact the organization once triggered

Answer

The speed at which a risk mitigation plan is implemented

Answer

The rate at which new risks are identified

Answer

The pace of residual risk reduction over time

Question 4

Which of the following best describes a 'bow-tie' risk analysis model?

Accepted Answer

A diagram showing causes on the left, the risk event in the center, and consequences on the right

Answer

A matrix plotting likelihood against impact for multiple risks

Answer

A heat map of residual risks after controls

Answer

A timeline of risk events over a fiscal year

Question 5

When using scenario analysis for risk identification, the primary benefit is:

Accepted Answer

Exploring plausible future states to uncover risks that may not be apparent in current operations

Answer

Reducing the time needed to document risks

Answer

Eliminating the need for quantitative risk models

Answer

Automating the risk register update process

Question 6

A company discovers that two previously independent risks now share a common trigger event. This relationship is best described as:

Accepted Answer

Risk correlation

Answer

Risk velocity

Answer

Risk appetite

Answer

Risk tolerance

Question 7

Which of the following is a key limitation of using only historical data for risk identification?

Accepted Answer

It may not capture emerging or novel risks with no prior occurrence

Answer

Historical data is too expensive to collect

Answer

It overstates the likelihood of low-probability risks

Answer

It cannot be used in quantitative risk models