Risk Identification & Assessment Techniques 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 Identification & Assessment Techniques flashcards as text
Which technique systematically evaluates how changes in a single input variable affect the overall risk assessment outcome?
Answer: Sensitivity analysis
Sensitivity analysis tests one variable at a time to determine which inputs have the greatest influence on the risk outcome or model output.
An organization conducts a risk review specifically to identify risks arising from interactions between different business units. This is best described as:
Answer: Interdependency risk analysis
Interdependency risk analysis examines how risks in one business unit or process can cascade and amplify risks in connected areas.
A risk analyst is asked to assess risks where little historical data exists. The most appropriate technique is:
Answer: Expert elicitation and structured judgment
When historical data is sparse, expert elicitation and structured judgment techniques like Delphi or expert interviews are the most appropriate risk assessment methods.
The 'risk universe' concept in enterprise risk management refers to:
Answer: The comprehensive inventory of all risk categories an organization might face
The risk universe is a comprehensive taxonomy of all potential risk types and categories that an organization could face across its operations and environment.
When assessing operational risk, which framework categorizes loss events into seven types including internal fraud and business disruption?
Answer: Basel II/III
Basel II/III defines seven operational risk event categories including internal fraud, external fraud, employment practices, clients, damage to assets, business disruption, and execution errors.
A risk register entry includes columns for risk owner, likelihood rating, impact rating, and risk response. What critical element is most commonly also included?
Answer: Residual risk rating after controls
Residual risk — the remaining risk level after controls are applied — is a standard component of risk registers alongside inherent risk ratings.
Which risk assessment technique is specifically designed to analyze what could go wrong by systematically questioning each step of a process with 'what if' prompts?
Answer: HAZOP (Hazard and Operability Study)
HAZOP uses structured 'what if' guide words to systematically examine each node of a process and identify potential deviations that could lead to hazards.