Risk Technology and Data Analytics Flashcards
6 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 6 Risk Technology and Data Analytics flashcards as text
What is the primary purpose of a Risk Information System (RIS)?
Answer: To centralize and manage risk data for reporting and analysis
A Risk Information System centralizes risk data to support consistent reporting, monitoring, and decision-making across the enterprise.
What does a risk dashboard primarily provide to executives?
Answer: Real-time visibility into key risk exposures and indicators
Risk dashboards provide executives with real-time visualization of key risk indicators and exposures to support informed decision-making.
Why is data quality critical in risk analytics?
Answer: It ensures accurate and reliable risk measurement and reporting
High data quality ensures that risk measurements and reports are accurate, enabling reliable risk-based decisions.
What does 'data lineage' refer to in risk management?
Answer: The documented journey of data from source to final report
Data lineage tracks the origin, movement, and transformation of data, which is critical for validating risk report accuracy and auditability.
What is the primary function of Key Risk Indicators (KRIs) in a risk technology system?
Answer: To provide early warning signals of increasing risk exposure
KRIs serve as early warning metrics that signal when risk levels are approaching unacceptable thresholds, enabling proactive risk management.
In risk management, what does a heat map display?
Answer: The relative likelihood and impact of identified risks
A risk heat map visually plots risks by likelihood and impact to help prioritize which risks require the most attention.