Risk Monitoring and Reporting CRISC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   Which of the following is a key feature of an effective risk dashboard?

   • AIt is updated only annually
   • BIt displays a limited set of the most important risk indicators
   • CIt contains only qualitative information
   • DIt includes every possible metric related to risk
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   Which risk reporting format is most effective for communicating the relative priority of different risks to senior management at a glance?

   • AMeeting minutes
   • BDetailed incident report
   • CRaw data spreadsheet
   • DRisk heatmap
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A financial services firm wants to monitor the risk of increased loan defaults as interest rates rise. The risk team has access to internal data on current loan portfolios, customer payment histories, and macroeconomic forecasts from a third-party provider. The team needs an early-warning signal that can be tracked monthly and compared against a predefined threshold. Which approach best satisfies this requirement?

   • ACreate a dashboard showing the total number of loans issued in the last quarter.
   • BCreate a KCI measuring the percentage of loan approval files that passed a second-level review.
   • CCreate a KRI measuring the percentage of loans with payments more than 30 days past due, with a threshold set at 5%.
   • DCreate a KPI measuring the average time to process a new loan application.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A manufacturing company has a manual control requiring two managers to approve any purchase order above $50,000. The internal audit team suspects the control is not always followed. Management wants a cost-effective way to verify compliance across all transactions without waiting for the annual audit. Which technique is most appropriate?

   • AConduct a one-time control self-assessment survey asking managers to self-report their compliance.
   • BPerform a full internal audit of all purchase orders from the past year.
   • CImplement continuous monitoring by running automated exception reports on all purchase orders above the threshold to check for dual signatures.
   • DReview a sample of purchase orders quarterly to check for dual signatures.
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   What is the primary purpose of control monitoring techniques?

   • ATo ensure controls continue to operate effectively over time
   • BTo calculate the financial impact of control failures
   • CTo identify new risks that were not previously considered
   • DTo replace the need for periodic internal audits
   Reveal Solution Discussion Select an answer first