CRMA Risk Response and Treatment

Question 1

Which of the following best describes the four primary risk response strategies recognized in enterprise risk management?

Accepted Answer

Avoid, Reduce, Share, Accept

Answer

Identify, Assess, Monitor, Report

Answer

Plan, Execute, Review, Improve

Answer

Prevent, Detect, Correct, Recover

Question 2

Risk avoidance as a response strategy is most appropriate when:

Accepted Answer

The cost of other responses exceeds the potential benefit

Answer

The risk falls within the organization's risk tolerance

Answer

The risk level is low and the likelihood is minimal

Answer

Insurance can fully cover the potential losses

Question 3

Which risk response strategy involves shifting the financial consequence of a risk to a third party?

Accepted Answer

Risk transfer

Answer

Risk reduction

Answer

Risk acceptance

Answer

Risk avoidance

Question 4

Residual risk is best defined as:

Accepted Answer

The risk remaining after management has applied risk responses

Answer

The total risk exposure before any controls are applied

Answer

The risk that cannot be quantified or measured

Answer

The risk associated with control failures

Question 5

Risk acceptance is most appropriate when:

Accepted Answer

The risk falls within the organization's defined risk appetite and tolerance

Answer

The risk is high-impact and high-likelihood

Answer

No other risk response options are available

Answer

The risk has not been fully identified or assessed

Question 6

Which of the following is an example of a risk reduction (mitigation) control?

Accepted Answer

Implementing multi-factor authentication to reduce unauthorized access

Answer

Purchasing cyber liability insurance

Answer

Discontinuing a product line with excessive liability exposure

Answer

Accepting minor system downtime as operationally tolerable

Question 7

When evaluating risk response options, which factor is MOST critical for management to consider?

Accepted Answer

The cost of the response relative to the risk's potential impact

Answer

The number of stakeholders affected by the risk

Answer

The historical frequency of the risk occurring

Answer

The industry average response time for similar risks