CRMA CRMA - Certification in Risk Management Assurance Risk Monitoring and Reporting Questions and Answers 2

Question 1

The CRMA framework recommends that risk monitoring activities be integrated into which organizational process to maximize effectiveness?

Accepted Answer

Strategic planning and performance management cycles

Answer

Annual financial statement preparation

Answer

External audit scheduling

Answer

Regulatory examination responses

Question 2

Which type of risk reporting is MOST appropriate when communicating emerging risks with high uncertainty to senior leadership?

Accepted Answer

Scenario-based reporting that presents potential outcomes under varying assumptions

Answer

Historical trend analysis showing past performance data only

Answer

Point-in-time quantitative reports with single-value estimates

Answer

Compliance checklists confirming adherence to existing controls

Question 3

An organization's risk heat map shows several risks clustered in the high-likelihood, high-impact quadrant. What is the MOST appropriate immediate action for the risk management function?

Accepted Answer

Escalate findings to the board and recommend prioritized mitigation or acceptance decisions

Answer

Reclassify risks to lower severity to reduce board concern

Answer

Remove the risks from the heat map until controls are implemented

Answer

Delegate all high-rated risks to operational managers without board notification

Question 4

Which metric BEST measures the effectiveness of an organization's risk response actions over time?

Accepted Answer

Tracking residual risk levels before and after controls are implemented

Answer

Counting the number of risk events that occurred during the period

Answer

Measuring the cost of the risk management department as a percentage of revenue

Answer

Recording the number of risk workshops conducted during the year

Question 5

In the context of CRMA, what is the role of internal audit in the risk monitoring process?

Accepted Answer

To provide independent assurance that risk monitoring processes are operating effectively and KRI data is reliable

Answer

To own and manage all KRIs on behalf of risk owners

Answer

To replace the risk management function's monitoring activities

Answer

To report directly to external auditors rather than the audit committee

Question 6

Which of the following is a leading indicator compared to a lagging indicator in risk monitoring?

Accepted Answer

Employee turnover trends in a critical control function (leading) versus the number of control failures already recorded (lagging)

Answer

Number of past audit findings (leading) versus current risk register completeness (lagging)

Answer

Prior year loss amounts (leading) versus current year budgeted risk costs (lagging)

Answer

External audit opinions from last year (leading) versus internal audit ratings this year (lagging)