CRMA CRMA - Certification in Risk Management Assurance Emerging Risks and Technology Questions and Answers 2

Question 1

When evaluating an organization's third-party risk management program, which area represents an EMERGING risk that has grown significantly in recent years?

Accepted Answer

Fourth-party risk — the risk exposure arising from the vendors of the organization's direct vendors

Answer

As organizations rely on interconnected supply chains, fourth-party risk has emerged as a significant blind spot where exposure extends beyond directly contracted vendors.

Question 2

Climate-related financial risk has become an emerging priority for ERM programs. Which category includes transition risks associated with climate change?

Accepted Answer

Risks from shifting regulations, market preferences, and technology changes as the economy moves toward lower carbon emissions

Answer

Transition risks arise from the economic shift toward a low-carbon economy and include regulatory changes, shifting consumer preferences, and stranded assets.

Question 3

An internal auditor assessing the organization's use of robotic process automation (RPA) should focus MOST on which risk?

Accepted Answer

Control failure risks if automated bots process transactions without adequate exception handling or human oversight of edge cases

Answer

RPA bots can process high volumes rapidly, meaning poorly designed exception handling can propagate errors at scale before human review catches them.

Question 4

Which of the following BEST describes 'concentration risk' in the context of emerging technology and cloud computing?

Accepted Answer

Over-reliance on a single cloud service provider such that a provider outage could disrupt critical operations across the entire organization

Answer

Cloud concentration risk occurs when a single provider hosts critical workloads, creating systemic exposure if that provider experiences disruption.

Question 5

In assessing emerging risks, what is 'horizon scanning' and what is its primary benefit for the CRMA professional?

Accepted Answer

A forward-looking process of identifying and monitoring potential risks before they fully emerge, enabling proactive rather than reactive risk management

Answer

Horizon scanning enables organizations to anticipate and prepare for risks that have not yet materialized, providing lead time for proactive response strategies.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA CRMA - Certification in Risk Management Assurance Emerging Risks and Technology Questions and Answers 2