CRMA Evaluating Risk Culture 2

Question 1

Which metric is MOST useful when quantitatively assessing risk culture strength across business units?

Accepted Answer

Near-miss reporting rates compared across units

Answer

Total revenue generated per unit

Answer

Number of employees per manager

Answer

Percentage of budget spent on compliance

Question 2

When conducting a risk culture survey, which design element most reduces social desirability bias in responses?

Accepted Answer

Guaranteed anonymity for respondents

Answer

Using a five-point Likert scale

Answer

Including senior leadership in the survey sample

Answer

Administering the survey annually

Question 3

A CRMA practitioner notices that formal risk policies are strong but actual employee behavior contradicts them. This gap is best described as:

Accepted Answer

Espoused values versus values-in-use

Answer

Policy obsolescence

Answer

Regulatory noncompliance

Answer

Risk appetite misalignment

Question 4

Which internal audit activity provides the STRONGEST evidence of tone at the top regarding risk culture?

Accepted Answer

Observing whether executives attend and actively engage in risk committee meetings

Answer

Reviewing the wording of the company's published risk appetite statement

Answer

Counting the number of risk training hours completed by executives

Answer

Analyzing the risk section of the annual report

Question 5

An organization rewards employees who exceed revenue targets regardless of the risk methods used. What risk culture problem does this indicate?

Accepted Answer

Incentive structures that undermine risk-aware behavior

Answer

Insufficient risk training programs

Answer

Inadequate segregation of duties

Answer

Poor risk appetite documentation

Question 6

Which of the following is a leading indicator of deteriorating risk culture?

Accepted Answer

Increasing number of employees bypassing established controls

Answer

A recent increase in total assets

Answer

Growing headcount in the risk function

Answer

Completion of a new enterprise risk framework

Question 7

When evaluating risk culture, focus groups are preferred over surveys in situations where:

Accepted Answer

Rich contextual understanding of attitudes is needed and sample size is small

Answer

Broad quantitative data across thousands of employees is required

Answer

Anonymous statistical benchmarking is the primary goal

Answer

Regulatory reporting deadlines are imminent