CRMA EXAM QUESTIONS AND ANSWERS
Risk management processes in entities in the governmental sector and private sectors
should be generally similar. However, due to a nt environment, and dissimilar
characteristics and objectives, risk management processes may Which of the following
is most true?
a. Organizational objectives are more diverse in government.
b. Even with constrained budgets, government entities may easily exceed private sector
entities' established "risk appetites."
c. Private sector entities face more laws and regulations than government agencies.
d. The governance organizations will bear the same names (e.g., "the board," "audit
committee," "a CAE") and functions the same way in both sectors. - Answers -Solution:
a
A newly appointed risk o begins an environmental scan by conducting interviews with
key She out that there is a strong sense of territory and she continues to hear the same
issues raised at each department's meetings. The risk er also has discovered that
action items are not shared among the various departments or management. What
would be the most likely conclusion of the risk environmental scan?
a. The organizational structure does not promote integration of activities across
departments.
b. It is likely that the CEO does not believe in the t's mission.
c. The organizational structure is not designed to allow for agile and innovative
responses to the external environment.
d. The managers are not given enough resources to help achieve the strategic goals. -
Answers -Solution: a
Stakeholder analysis is an important component of risk management planning. Which of
the following two factors are most likely to result in interests and expectations among
primary internal stakeholders?
I. The responsibility to accommodate the extra work and the level of skills and resources
necessary to implement risk management.
II. A corporate culture that focuses management on personal or
short-term gain while owners' interests tend to be focused on long-term returns on their
investment.
III. Whether a stakeholder is represented in the development of
risk management processes.
IV. Whether the organization is in the private sector or the
public sector.
a. I and II only.
b. II and III only.
c. I and III only.
d. III and IV only. - Answers -Solution: a (I and II only)
Risk management processes in entities in the governmental sector and private sectors
should be generally similar. However, due to a nt environment, and dissimilar
characteristics and objectives, risk management processes may Which of the following
is most true?
a. Organizational objectives are more diverse in government.
b. Even with constrained budgets, government entities may easily exceed private sector
entities' established "risk appetites."
c. Private sector entities face more laws and regulations than government agencies.
d. The governance organizations will bear the same names (e.g., "the board," "audit
committee," "a CAE") and functions the same way in both sectors. - Answers -Solution:
a
A newly appointed risk o begins an environmental scan by conducting interviews with
key She out that there is a strong sense of territory and she continues to hear the same
issues raised at each department's meetings. The risk er also has discovered that
action items are not shared among the various departments or management. What
would be the most likely conclusion of the risk environmental scan?
a. The organizational structure does not promote integration of activities across
departments.
b. It is likely that the CEO does not believe in the t's mission.
c. The organizational structure is not designed to allow for agile and innovative
responses to the external environment.
d. The managers are not given enough resources to help achieve the strategic goals. -
Answers -Solution: a
Stakeholder analysis is an important component of risk management planning. Which of
the following two factors are most likely to result in interests and expectations among
primary internal stakeholders?
I. The responsibility to accommodate the extra work and the level of skills and resources
necessary to implement risk management.
II. A corporate culture that focuses management on personal or
short-term gain while owners' interests tend to be focused on long-term returns on their
investment.
III. Whether a stakeholder is represented in the development of
risk management processes.
IV. Whether the organization is in the private sector or the
public sector.
a. I and II only.
b. II and III only.
c. I and III only.
d. III and IV only. - Answers -Solution: a (I and II only)
