Practice Test Geeks(CRA) Certified Risk Architect Practice Test
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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

  1. A risk architect reviews a heat map showing risks plotted by likelihood and impact. A risk in the top-right quadrant should be treated how?

    Answer: Prioritized for urgent risk response given high likelihood and high impact

    Risks in the top-right quadrant of a heat map have both high likelihood and high impact, making them the highest priority for immediate risk response.

  2. Which statistical distribution is most commonly used to model the frequency of operational loss events in quantitative risk assessments?

    Answer: Poisson distribution

    The Poisson distribution is widely used to model the frequency of rare, discrete loss events over a fixed time period in operational risk modeling.

  3. What is the key difference between 'inherent risk' and 'residual risk'?

    Answer: Inherent risk is the risk before controls, while residual risk is the risk remaining after controls are applied

    Inherent risk is the raw exposure before any controls, while residual risk is what remains after existing controls and mitigations are factored in.

  4. During a bow-tie analysis, what does the 'tie' in the center represent?

    Answer: The top event or hazardous event being analyzed

    In bow-tie analysis, the central 'knot' represents the top event or hazard, with threats on the left and consequences on the right.

  5. Which risk identification method systematically examines each step in a process to identify what could go wrong and why?

    Answer: Hazard and Operability Study (HAZOP)

    HAZOP systematically examines each process step using guide words to identify deviations and potential hazards in complex operational systems.

  6. A company in the retail sector wants to identify risks from its external environment including regulatory, economic, and social changes. Which framework is best suited for this purpose?

    Answer: PESTLE Analysis

    PESTLE Analysis (Political, Economic, Social, Technological, Legal, Environmental) is specifically designed to identify external macro-environmental risks.

  7. What is 'velocity' in the context of risk assessment?

    Answer: The speed at which a risk can escalate from identification to impact

    Risk velocity measures how quickly a risk can materialize and cause harm once triggered, informing the urgency of response planning.