CRA Risk Identification & Assessment Techniques

Question 1

What is the purpose of risk identification?

Accepted Answer

To identify threats to objectives early

Answer

The primary purpose of risk identification is to proactively discover and document potential threats or opportunities that could impact an organization's objectives. By identifying risks early in a project or operational phase, an organization can better understand potential challenges and develop strategies to mitigate negative impacts or capitalize on positive ones. This early awareness is crucial for effective risk management and strategic planning.

Question 2

Which tool is commonly used to visually assess risks?

Accepted Answer

Risk matrix

Answer

A risk matrix is a commonly used tool for visually assessing and prioritizing risks based on their likelihood and impact. It typically plots risks on a grid, allowing analysts to quickly identify high-priority risks that require immediate attention and allocate resources accordingly. This visual representation aids in clear communication and decision-making regarding risk treatment strategies.

Question 3

What is qualitative risk assessment?

Accepted Answer

Using categories to judge severity and likelihood

Answer

Qualitative risk assessment involves subjectively evaluating risks based on descriptive scales or categories, such as "low," "medium," or "high" for likelihood and impact. This method prioritizes risks for further analysis or response by combining these categorical judgments, rather than using numerical or statistical calculations.

Question 4

Which document helps track identified risks?

Accepted Answer

Risk register

Answer

A risk register is a crucial document in risk management that systematically records all identified risks. It typically includes details such as risk descriptions, potential impacts, likelihood, assigned owners, and planned responses, serving as a central repository for tracking and monitoring risks throughout a project or organization.

Question 5

Which method involves analyzing root causes of risks?

Accepted Answer

Root cause analysis

Answer

Root cause analysis (RCA) is a systematic process for identifying the fundamental reasons behind problems or risks, rather than just addressing their symptoms. By delving into the underlying causes, organizations can develop more effective and lasting solutions to prevent recurrence.

(CRA) Certified Risk Analyst Practice Test

(CRA) Certified Risk Analyst Practice Test

CRA Risk Identification & Assessment Techniques