CRMA - Certification in Risk Management Assurance Risk Identification and Analysis Questions and Answers

Question 1

An internal audit engagement identified a recurring operational failure in the procurement department, leading to significant project delays. The audit team wants to move beyond identifying the immediate cause and understand the fundamental systemic issues that allowed the failure to occur. Which of the following risk analysis techniques is MOST appropriate for this purpose?

Accepted Answer

Root cause analysis (RCA)

Answer

Root cause analysis (RCA) is a structured method used to uncover the underlying causes of a problem or risk event. Its primary goal is to move beyond addressing symptoms to find the core issues that need correction to prevent recurrence. SWOT analysis is a strategic planning tool, heat mapping is for prioritizing risks, and scenario analysis explores potential future events, none of which are designed to find the foundational cause of a past failure.

Question 2

A CRMA is reviewing the organization's risk management process. A key document centralizes information by listing identified risks, their potential impact and likelihood, assigned owners, and planned responses. This document is best known as a:

Accepted Answer

Risk register

Answer

A risk register is a central repository used to document and track risks identified by an organization. Its key components typically include a description of the risk, its category, impact, likelihood, risk owner, and the corresponding mitigation or response plan. The other options are distinct risk management tools with different purposes.

Question 3

During a risk analysis workshop, a team assesses various risks by assigning descriptive ratings such as 'High,' 'Medium,' or 'Low' to their likelihood and impact, without using specific numerical values or financial data. This method of risk analysis is best described as:

Accepted Answer

Qualitative

Answer

Qualitative risk analysis is a subjective, scenario-based method that uses descriptive scales (e.g., High, Medium, Low) to assess the likelihood and impact of risks. It relies on the experience and judgment of experts. Quantitative analysis, in contrast, uses objective numerical data and statistical models to assign values to risk.

Question 4

A CRMA is assessing the organization's ability to prioritize risks effectively. The team has analyzed risks based on impact and likelihood, but the CRMA suggests also considering the speed at which a risk could affect the organization after it occurs. This additional dimension is known as:

Accepted Answer

Risk velocity

Answer

Risk velocity, also known as speed of onset, refers to how fast a risk event can impact an organization. It is a critical third dimension in risk analysis, along with impact and likelihood, as high-velocity risks require more urgent attention and faster response strategies.

Question 5

A company is planning to launch a new product line in an emerging market with high uncertainty and regulatory ambiguity. To identify a broad range of potential strategic risks and opportunities, which risk identification technique would be most effective?

Accepted Answer

Brainstorming workshops with a diverse group of stakeholders

Answer

Brainstorming workshops that include a diverse group of internal and external stakeholders are highly effective for identifying a wide range of potential risks and opportunities in uncertain situations. This collaborative approach encourages creative thinking beyond historical data or individual perspectives. Checklists and trend analysis are limited by past experience, and interviews might not capture the full spectrum of possibilities that a group session can.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA - Certification in Risk Management Assurance Risk Identification and Analysis Questions and Answers