CRMA Risk Response and Treatment 3

Question 1

When the cost of treating a risk exceeds the potential impact of the risk event itself, the organization should:

Accepted Answer

Accept the risk and document the rationale with management approval

Answer

When treatment costs exceed potential impact, accepting the risk with proper documentation and management approval is the most rational and cost-effective response.

Question 2

A 'secondary risk' in the context of risk response refers to:

Accepted Answer

A new risk introduced as a direct result of implementing a risk response

Answer

Secondary risk is a new risk that arises as an unintended consequence of implementing a risk response, and it must itself be assessed and managed.

Question 3

How does risk tolerance relate to the selection of a risk response strategy?

Accepted Answer

Risk tolerance defines the maximum acceptable level of residual risk, guiding which response strategy is sufficient

Answer

Risk tolerance defines the acceptable band of residual risk; the chosen response strategy should bring residual risk within that tolerance level.

Question 4

The concept of 'risk aggregation' in response planning is BEST described as:

Accepted Answer

Assessing how multiple individual risks combine to affect overall organizational risk exposure

Answer

Risk aggregation involves understanding how multiple individual risks interact and combine, potentially creating a total exposure greater than the sum of individual risks.

Question 5

How should the emergence of new or rapidly evolving risks influence an organization's risk response strategies?

Accepted Answer

Risk responses should be dynamically reassessed and updated to address new exposures

Answer

Risk responses must be periodically reviewed and updated to remain effective as the risk landscape evolves; static responses may become inadequate over time.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA Risk Response and Treatment 3