CRMA CRMA - Certification in Risk Management Assurance Emerging Risks and Technology Questions and Answers 2

Question 1

When evaluating an organization's third-party risk management program, which area represents an EMERGING risk that has grown significantly in recent years?

Accepted Answer

Fourth-party risk — the risk exposure arising from the vendors of the organization's direct vendors

Answer

Currency exchange rate fluctuations with primary vendors

Answer

The cost of renegotiating vendor contracts at renewal

Answer

Seasonal demand variability affecting vendor performance

Question 2

Climate-related financial risk has become an emerging priority for ERM programs. Which category includes transition risks associated with climate change?

Accepted Answer

Risks from shifting regulations, market preferences, and technology changes as the economy moves toward lower carbon emissions

Answer

Physical risks from extreme weather events damaging facilities

Answer

Reputational risks from negative media coverage of environmental incidents

Answer

Litigation risks from past pollution events

Question 3

An internal auditor assessing the organization's use of robotic process automation (RPA) should focus MOST on which risk?

Accepted Answer

Control failure risks if automated bots process transactions without adequate exception handling or human oversight of edge cases

Answer

Risk that bots will replace too many employees

Answer

Cybersecurity risk from RPA vendors accessing payroll data

Answer

Risk that RPA increases headcount costs beyond budget

Question 4

Which of the following BEST describes 'concentration risk' in the context of emerging technology and cloud computing?

Accepted Answer

Over-reliance on a single cloud service provider such that a provider outage could disrupt critical operations across the entire organization

Answer

The tendency for cloud costs to concentrate in the IT budget versus other departments

Answer

The risk that cloud storage becomes too concentrated with sensitive data

Answer

The risk that the organization has too many cloud providers increasing management complexity

Question 5

In assessing emerging risks, what is 'horizon scanning' and what is its primary benefit for the CRMA professional?

Accepted Answer

A forward-looking process of identifying and monitoring potential risks before they fully emerge, enabling proactive rather than reactive risk management

Answer

A retrospective analysis of risk events that occurred in the previous year

Answer

A technique for quantifying the financial impact of all current risks in the register

Answer

A process for reviewing regulatory requirements across multiple jurisdictions simultaneously

Question 6

Which of the following is the MOST appropriate way for internal audit to provide assurance over an organization's generative AI tools used in customer-facing applications?

Accepted Answer

Assess governance policies, bias testing practices, accuracy validation processes, and transparency disclosures to customers about AI use

Answer

Test only the underlying IT infrastructure supporting the AI system

Answer

Limit the review to verifying that the AI vendor holds a SOC 2 certification

Answer

Defer entirely to the data science team's self-assessment of AI output quality