Certification in Risk Management Assurance (CRMA) Practice Exam 2025 - Free CRMA Practice Questions and Study Guide

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What is one of the primary activities involved in risk assessment?

Identifying controls to eliminate risks

Performing financial audits

Determining the likelihood and impact of risks

One of the primary activities involved in risk assessment is determining the likelihood and impact of risks. This process is essential because it allows organizations to understand the potential threats they face and how these threats can affect their objectives. By assessing both the likelihood of risks occurring and the potential impact on the organization, practitioners can prioritize risks and focus on those that pose the greatest challenges.

This activity forms the foundation for risk management strategies, allowing decision-makers to allocate resources effectively and implement appropriate controls and responses. It ensures that the organization is prepared to mitigate the most serious risks while taking into account its risk tolerance and appetite. Through this assessment, organizations can develop a comprehensive understanding of their risk landscape, which is vital for successful risk management and strategic planning.

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Evaluating employee performance

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