CRMA Risk Identification and Analysis 3

Question 1

Which qualitative risk analysis tool uses predefined scales for both likelihood and impact to rank risks for prioritization?

Accepted Answer

Risk probability and impact matrix

Answer

The probability and impact matrix (risk matrix) combines qualitative scales to classify risks as high, medium, or low priority.

Question 2

In the context of CRMA, 'inherent risk' is best defined as:

Accepted Answer

The risk level that exists before any mitigating controls are in place

Answer

Inherent risk is the exposure an organization faces in the absence of any actions taken to alter the risk's likelihood or impact.

Question 3

An internal auditor conducts interviews with process owners to identify risks. Which risk identification technique is being used?

Accepted Answer

Subject matter expert inquiry

Answer

Interviewing subject matter experts or process owners is a direct inquiry technique for eliciting risk information from knowledgeable individuals.

Question 4

A technology company faces the risk that a competitor could launch a superior product within 12 months. Which risk category does this most likely represent?

Accepted Answer

Strategic risk

Answer

Competitive threats that affect an organization's strategic position and market share are classified as strategic risks.

Question 5

Which statement about risk workshops is MOST accurate?

Accepted Answer

They are most effective when facilitated by an independent party to reduce groupthink

Answer

Independent facilitation reduces bias and groupthink, producing more comprehensive and honest risk identification outcomes.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA Risk Identification and Analysis 3