Risk Identification & Assessment 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 flashcards as text
Which risk identification technique involves subject matter experts anonymously providing estimates that are refined through multiple rounds of feedback?
Answer: Delphi Technique
The Delphi Technique uses anonymous expert input over iterative rounds to converge on a consensus risk estimate without group-think bias.
A risk architect is assessing operational risk in a financial institution. Which component of the Basel III framework specifically addresses operational risk capital requirements?
Answer: Pillar 1 – Minimum Capital Requirements
Pillar 1 of Basel III sets minimum capital requirements that explicitly include operational risk alongside credit and market risk.
When using a Risk Breakdown Structure (RBS), what is its primary purpose in risk identification?
Answer: To hierarchically categorize risk sources for systematic identification
An RBS hierarchically categorizes risk sources, ensuring comprehensive coverage of all potential risk areas during identification.
Which type of risk assessment approach assigns numerical probabilities and monetary values to risk outcomes?
Answer: Quantitative risk assessment
Quantitative risk assessment uses numerical probabilities and financial values to produce objective, measurable risk metrics.
An organization discovers that a single vendor supplies components to three critical business units, creating concentration risk. Which risk identification method would most likely have surfaced this dependency?
Answer: Dependency Mapping
Dependency mapping visualizes relationships between suppliers, processes, and business units, surfacing concentration and single-point-of-failure risks.
In the context of enterprise risk management, what does 'risk appetite' specifically define?
Answer: The amount and type of risk an organization is willing to accept in pursuit of its objectives
Risk appetite defines the broad level and types of risk an organization is prepared to accept while pursuing its strategic goals.
Which of the following best describes an 'emerging risk' in enterprise risk management?
Answer: A risk that is new, evolving, or not yet fully understood with uncertain potential impact
Emerging risks are new or evolving threats that are not yet fully understood, making their probability and impact difficult to quantify.