Which of the following statements are true for enterprise's risk management capability maturity level 3 ?

• A.Workflow tools are used to accelerate risk issues and track decisions
• B.The business knows how IT fits in the enterprise risk universe and the risk portfolio view
• C.The enterprise formally requires continuous improvement of risk management skills, based on clearly defined personal and enterprise goals
• D.Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are recognized
• E.Explanation:
  An enterprise's risk management capability maturity level is 3 when:
  Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are
  recognized.
  There is a selected leader for risk management, engaged with the enterprise risk committee,
  across the enterprise.
  The business knows how IT fits in the enterprise risk universe and the risk portfolio view.
  Local tolerances drive the enterprise risk tolerance.
  Risk management activities are being aligned across the enterprise.
  Formal risk categories are identified and described in clear terms.
  Situations and scenarios are included in risk awareness training beyond specific policy and
  structures and promote a common language for communicating risk.
  Defined requirements exist for a centralized inventory of risk issues.
  Workflow tools are used to accelerate risk issues and track decisions.

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Which of the following is the MOST important use of KRIs?

• A.Providing a backward-looking view on risk events that have occurred
• B.Providing an early warning signal
• C.Providing an indication of the enterprise's risk appetite and tolerance
• D.Enabling the documentation and analysis of trends
• E.Explanation:
  Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large enterprise may have. As KRIs are the indicators of risk, hence its most important function is to effectively give an early warning signal that a high risk is emerging to enable management to take proactive action before the risk actually becomes a loss.
• F.is incorrect. This is not as important as giving early warning. Answer: A is incorrect. This is one of the important functions of KRIs which can help management
  to improve but is not as important as giving early warning.

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You are the project manager of GHT project. During the data extraction process, you evaluated the total number of transactions per year by multiplying the monthly average by twelve. This process of evaluating total number of transactions is known as?

• A.Duplicates test
• B.Controls total
• C.Simplistic and ineffective
• D.Reasonableness test

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A risk practitioner observed Vial a high number of pokey exceptions were approved by senior management. Which of the following is the risk practitioner s BEST course of action to determine root cause?

• A.Review the risk profile
• B.interview the control owner
• C.Review pokey change history
• D.Perform control testing

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Which of the following is MOST important to understand when developing key risk indicators (KRIs)?

• A.Control environment
• B.KRI thresholds
• C.Stakeholder requirements
• D.Integrity of the source data

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