Risk Dashboard & Heat Maps Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Dashboard & Heat Maps flashcards as text
What is the purpose of a risk velocity indicator on a risk dashboard?
Answer: To capture how fast a risk is moving toward or away from its impact threshold
Risk velocity measures the speed at which a risk is developing or escalating, helping managers prioritize emerging threats before they materialize.
In a 5x5 risk matrix, how many total cells exist and what is the maximum possible risk score if likelihood and impact are each scored 1–5?
Answer: 25 cells; maximum score 25
A 5x5 matrix has 25 cells, and multiplying the maximum scores of 5 (likelihood) × 5 (impact) yields a maximum risk score of 25.
Which technique helps prevent 'heat map inflation,' where too many risks are rated as high?
Answer: Applying forced ranking or calibration workshops across risk owners
Calibration workshops and forced ranking ensure that risk owners apply consistent scoring standards, reducing the bias toward over-rating all risks as high.
A Key Risk Indicator (KRI) on a dashboard shows a value at 95% of its threshold. What action should this trigger?
Answer: Amber alert status and escalation to risk management for review
A reading near the threshold (often the amber zone) should trigger a management review before the red threshold is breached.
What distinguishes an inherent risk rating from a residual risk rating on a heat map?
Answer: Inherent risk is the exposure before controls; residual risk reflects exposure after controls are applied
Inherent risk captures the raw exposure before any mitigating controls, while residual risk represents remaining exposure after controls are factored in.
Which dashboard design principle reduces cognitive load for risk reviewers?
Answer: Using consistent color codes, icons, and layouts across all panels
Consistency in visual language (colors, icons, layout) allows reviewers to interpret information faster without relearning conventions each time.
When a risk heat map is used in an enterprise risk management (ERM) program, how should it be refreshed?
Answer: On a schedule aligned with the risk assessment cycle, typically quarterly or annually
Heat maps should be updated in alignment with the organization's formal risk assessment cadence to remain relevant and actionable.