CRO Emerging Risk Identification 2

Question 1

Which horizon-scanning technique uses structured debate between advocates and challengers to test risk assumptions?

Accepted Answer

Dialectical inquiry

Answer

Dialectical inquiry pits opposing viewpoints against each other to surface hidden assumptions and stress-test risk narratives.

Question 2

A CRO receives a report that a competitor's AI-based underwriting model produced discriminatory outcomes. Which emerging risk category does this most directly represent?

Accepted Answer

Algorithmic bias risk

Answer

Algorithmic bias risk arises when AI/ML models embed or amplify discriminatory patterns, creating regulatory and legal exposure.

Question 3

The 'velocity' dimension of an emerging risk refers to:

Accepted Answer

How quickly the risk can escalate from signal to impact

Answer

Velocity measures the speed of risk escalation, which is especially critical for emerging risks that can move from early signal to full impact faster than traditional controls can respond.

Question 4

Which of the following is the BEST indicator that an organization has an effective emerging risk identification process?

Accepted Answer

Novel risks are added to the register before they cause losses

Answer

An effective process captures novel threats proactively, before they manifest as actual losses, enabling preventive action.

Question 5

Quantum computing is flagged as an emerging risk for financial institutions primarily because it threatens to:

Accepted Answer

Break current public-key cryptographic standards

Answer

Sufficiently powerful quantum computers could defeat RSA and elliptic-curve encryption, exposing sensitive financial data and transactions.

(CRO) Chief Risk Officer Certification Practice Test

(CRO) Chief Risk Officer Certification Practice Test

CRO Emerging Risk Identification 2