RIMS - CRMP COMPLETE STUDY
GUIDE; 1 ANALYZE THE BUSINESS
MODEL, 2 DEVELOPING
ORGANIZATIONAL RISK STRATEGIES, 3
RIMS CRMP-IMPLEMENTING THE RISK
PROCESS, 4 DEVELOPING
ORGANIZATIONAL RISK MANAGEMENT
COMPETENCY, 5 SUPPORTING
DECISION MAKING, ,
Riskst-tans✔✔Theteffecttoftuncertaintytontobjectives
Thetchancetoftsomethingthappeningtthattwillthavetantimpacttontobjectives
Beingtpreparedtfortthetworsttandtbeingtpoisedttotexploittopportunitiestasttheytaretdiscovere
d
EnterprisetRisktManagementt-
tans✔✔Atstrategictbusinesstdisciplinetthattsupportstthetachievementtoftantorganization'sto
bjectivestbytaddressingtthetfulltspectrumtoftitstriskstandtmanagingtthetcombinedtimpacttoftth
osetriskstastantinterrelatedtrisktportfolio.
SupporttFunction:tBusinesstcontinuitytandtcrisistmanagementt-
tans✔✔Risktidentification, tassessmenttandtcreationtoftemergencytresponsetandtrecoveryt
planstrelatedttotthreatstorthazardstthattmighttleadttotoperationaltdisruptions
Analysist-
tans✔✔Atsystematictexaminationtandtevaluationtoftdatatortinformationtbytbreakingtittintotitst
componenttpartsttotuncoverttheirtrelationships.tAntexaminationtoftdatatandtfactsttotuncovert
andtunderstandtcause-
effecttrelationships,tthustprovidingtbasistfortproblemtsolvingtandtdecisiontmaking.
Totembedtrisktmanagementtintbothtroutinetandtstrategictdecision,twhattshouldtmanagerstb
etablettotrecognize?t-
,ans✔✔Thettypetoftdecisiontbeingtmade;tWhotshouldtbetincludedtintthetdecisiontmakingtpr
t
ocess;tWheretintthetprocesstdecisionstaretbeingtmade
Risktmanagementtstrategies'tgeneraltfocust-
tans✔✔Meetingtortexceedingtantorganization'stobjectives
Adheringttotcontrol-basedtobjectives,trulestand/ortcontrols
Complyingtwithtregulatorytrequirements
SupporttFunction:tInternaltAuditt-
tans✔✔Risktidentification, tassessmenttandttreatmenttthroughtaudittplanstwithtfocustontfrau
d,tcorruption,tregulatorytnoncompliancetand/
ortmisrepresentationtrelatedttotthetorganization'stinternaltcontroltsystems,tfinancialtoperati
ons,tfinancialtstatementstandtreportingtastwelltastenterprisetrisktandtthetorganization'striskt
managementtframeworktandtprocess.
Whattstepstcantthetrisktmanagementtprofessionalttakettotembedtrisktmanagementtintdecisi
ontmaking?t-tans✔✔Includetrisktassessmenttintplanningtprocess;tLeveragetcross-
functionaltrisktassessmenttteamtandtsubjecttmattertexpertsttotidentifytenterprisetrisks;tCon
sidertcascadingtandtcumulativeteffects
GaptAnalysist-
tans✔✔Techniquetthattcantbetusedttotdeterminetwhattstepstmighttneedttotbettakenttotimpro
vetthetorganization'stcapacityttotmovetfromtatcurrenttstatettotatdesiredtfuturetstate.
Risktappetitet-
tans✔✔Thettotaltexposedtamounttthattantorganizationtwishesttotundertaketontthetbasistoftri
sk-returnttrade-offstfortonetortmoretdesiretandtexpectedtoutcomes.
CommunicationtandtConsultationt-
tans✔✔Risktmanagementtprofessional'stroletintImplementingtRisktStrategies
SupporttFunction:tLegalt-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftriskstrelatedttotthetobligationtantor
ganizationtundertakestandttransferstthroughtcontracting,tastwelltastitstcompliancetwithtappl
icabletlawstandtregulatorytobligations.
Whattaretthettypicaltfailurestintrisktmanagementtwhichtcantbetavoidedtiftittistembeddedtintth
etdecisiontmakingtprocess?t-
tans✔✔Programtnottintegratedtintotstrategytortitstexecution;tFocusedtontthetwrongtrisks;tN
ottexecutedtintatrepeatabletprocess;tRisktmanagementtistpracticedtintatsilo;tActivitytnottvie
wedtastbeingtvaluetadded
StrategictPlant-
tans✔✔Determinestthattactionstthetorganizationtwillttaketattanytstagetoftthetplanningtperiod
tastcircumstancestchange.
,Risktownert-
tans✔✔Thetindividualtwhotistultimatelytaccountabletfortensuringtthattrisktistmanagedtappro
priately,tincludingtthetimplementationtoftselectedtresponses.
RisktIdentificationtProcesst-tans✔✔Finding,tRecognizingtandtRecordingtRisks
SupporttFunction:tCompliancet-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftrisktrelatedttotregulationstthattmayt
affecttthetorganization'stabilityttotoperatetintitstrespectivetjurisdictions,tastwelltastactivitiestt
hattfalltwithintitstcompliancetandtethicstprograms.
Totsuccessfullytintegratetrisktmanagementtintotdecisiontmaking,trisktmanagementtprofessi
onalstwilltrelytontstrategiestthattdrawtontpersonaltandttechnicaltskillstint-
tans✔✔Buildingtorganizationaltawareness;t.tDifferentiatingtthetdifferentttypestoftdecisionst
usedtintvaryingtsituationstusingtelementstoftdecisiontquality;tPerformingtvarioustrolestintthet
takingtrisktintotaccounttintdecision-makingtprocess
Strategyt-
tans✔✔Atcompletetplantoftactiontfortwhatevertsituationstmighttarisetintachievingtantorganiz
ation'stgoalstwithintthetestablishedttime.
Riskttolerancet-
tans✔✔Thetamounttoftuncertaintytantorganizationtistpreparedttotaccepttinttotaltortmoretnarr
owlytwithintatcertaintbusinesstunit,tatparticulartrisktcategorytortfortatspecifictinitiative.
StrategictRisktManagementt-
tans✔✔Atbusinesstdisciplinetthattdrivestdeliberationtandtactiontregardingtuncertaintiestand
tuntappedtopportunitiestthattaffecttantorganization'ststrategytandtstrategictexecution.
ValuetChaint-
tans✔✔Thetseriestoftfunctions,tprocesses,tmaterialstandtactivitiest(inputs)tfromtconceptttott
heteventualtendtusertthattcreatestandtbuildstvaluetatteverytsteptintorderttotdelivertatproductt
ortservice.
Totbuildtorganizationaltawareness,tthetrisktmanagementtprofessionaltneedsttotdotthetfollo
wing:t-
tans✔✔Betatpersuasivetcommunicatortandtfacilitator;tHavetatcleartcommunicationtplan;tEn
gagetinterestedtparties,tincludingtprimarytandtsecondarytaudiences;tDemonstratetthattriskt
managementtcreatestthetmosttvaluet;tDeveloptfeedbacktloopstfortcontinuoustlearning
RisktAnalysist-
tans✔✔Thetprocesstoftcharacterizingtandtunderstandingtthetnaturetoftrisktandtoftconsideri
ngtthetleveltoftrisktintthetcontexttoftthetorganization'stwillingnessttotaccepttrisk.
, SupporttFunction:tSafetyt-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftriskstfocusedtontpreservingtthetph
ysicaltwell-beingtoftemployeestandtthirdtparties.
Likelihood,tConsequences,tothertcriteriatsuchtasttiming,tduration,tvulnerabilitytandtinterdep
endenciest-tans✔✔Risktisttypicallytanalyzedtontthetbasistof
SupporttFunction:tInformationtSecurityt-
tans✔✔RisktIdentification,tassessmenttandttreatmenttoftrisktarisingtourtoftortaffectingtinfor
mationtandttechnologytinfrastructure.
Totbuildtorganizationaltawareness,trisktmanagementtcreatestthetmosttvaluetwhent-
tans✔✔RisktmanagementtAlignstwithtstrategictgoals;tTakestcorporatetculturetintotaccount;
tInvolvestkeytenterprisetfunctions
FinancialtStatementst-
tans✔✔Internaltsourcetoftinformationtthattincludestfinancialtanalyticstortprojections
strategictplanningtteamt-
tans✔✔Thetrisktmanagertshouldtbetatparttoftthet_______________________ ttotprovidetth
etstructuretdisciplinetfortconsiderationtoftriskstintatstrategictportfolio.
InternaltAudittReportst-
tans✔✔Internaltsourcetoftinformationtthattfocusestontbusinesstpracticestimportantttotthetgo
alstandtreflectiontoftregulatorytenvironmenttoftthetorganization
risktmanagementt-
tans✔✔__________________ tshouldtbetantagendatitemtatteverytstrategytsession.
SupporttFunction:tFacilitiest-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftthetorganization'stproperties,tequi
pmenttandtphysicaltinfrastructuretsystems.
Simpletandtfrequentt-
tans✔✔Attypetoftdecisiontthattaretautomatic,ttakentintthetmoment.tThesetdecisionstgeneral
lytrelytontthetknowledgetandtcapabilitytoftthetdecisiontmakertusingtthetback-of-the-
napkinttechnique.
Bowttietanalysist-tans✔✔hazardtanalysisttechniquet(causetandtconsequence)
Businesstimpacttanalysist-
tans✔✔considertbusinesstimpactstattatlocationtortfromtatspecifictprocess
SupporttFunctions:tQualityt-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftriskstrelatedttotproductstandtservic
es.
GUIDE; 1 ANALYZE THE BUSINESS
MODEL, 2 DEVELOPING
ORGANIZATIONAL RISK STRATEGIES, 3
RIMS CRMP-IMPLEMENTING THE RISK
PROCESS, 4 DEVELOPING
ORGANIZATIONAL RISK MANAGEMENT
COMPETENCY, 5 SUPPORTING
DECISION MAKING, ,
Riskst-tans✔✔Theteffecttoftuncertaintytontobjectives
Thetchancetoftsomethingthappeningtthattwillthavetantimpacttontobjectives
Beingtpreparedtfortthetworsttandtbeingtpoisedttotexploittopportunitiestasttheytaretdiscovere
d
EnterprisetRisktManagementt-
tans✔✔Atstrategictbusinesstdisciplinetthattsupportstthetachievementtoftantorganization'sto
bjectivestbytaddressingtthetfulltspectrumtoftitstriskstandtmanagingtthetcombinedtimpacttoftth
osetriskstastantinterrelatedtrisktportfolio.
SupporttFunction:tBusinesstcontinuitytandtcrisistmanagementt-
tans✔✔Risktidentification, tassessmenttandtcreationtoftemergencytresponsetandtrecoveryt
planstrelatedttotthreatstorthazardstthattmighttleadttotoperationaltdisruptions
Analysist-
tans✔✔Atsystematictexaminationtandtevaluationtoftdatatortinformationtbytbreakingtittintotitst
componenttpartsttotuncoverttheirtrelationships.tAntexaminationtoftdatatandtfactsttotuncovert
andtunderstandtcause-
effecttrelationships,tthustprovidingtbasistfortproblemtsolvingtandtdecisiontmaking.
Totembedtrisktmanagementtintbothtroutinetandtstrategictdecision,twhattshouldtmanagerstb
etablettotrecognize?t-
,ans✔✔Thettypetoftdecisiontbeingtmade;tWhotshouldtbetincludedtintthetdecisiontmakingtpr
t
ocess;tWheretintthetprocesstdecisionstaretbeingtmade
Risktmanagementtstrategies'tgeneraltfocust-
tans✔✔Meetingtortexceedingtantorganization'stobjectives
Adheringttotcontrol-basedtobjectives,trulestand/ortcontrols
Complyingtwithtregulatorytrequirements
SupporttFunction:tInternaltAuditt-
tans✔✔Risktidentification, tassessmenttandttreatmenttthroughtaudittplanstwithtfocustontfrau
d,tcorruption,tregulatorytnoncompliancetand/
ortmisrepresentationtrelatedttotthetorganization'stinternaltcontroltsystems,tfinancialtoperati
ons,tfinancialtstatementstandtreportingtastwelltastenterprisetrisktandtthetorganization'striskt
managementtframeworktandtprocess.
Whattstepstcantthetrisktmanagementtprofessionalttakettotembedtrisktmanagementtintdecisi
ontmaking?t-tans✔✔Includetrisktassessmenttintplanningtprocess;tLeveragetcross-
functionaltrisktassessmenttteamtandtsubjecttmattertexpertsttotidentifytenterprisetrisks;tCon
sidertcascadingtandtcumulativeteffects
GaptAnalysist-
tans✔✔Techniquetthattcantbetusedttotdeterminetwhattstepstmighttneedttotbettakenttotimpro
vetthetorganization'stcapacityttotmovetfromtatcurrenttstatettotatdesiredtfuturetstate.
Risktappetitet-
tans✔✔Thettotaltexposedtamounttthattantorganizationtwishesttotundertaketontthetbasistoftri
sk-returnttrade-offstfortonetortmoretdesiretandtexpectedtoutcomes.
CommunicationtandtConsultationt-
tans✔✔Risktmanagementtprofessional'stroletintImplementingtRisktStrategies
SupporttFunction:tLegalt-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftriskstrelatedttotthetobligationtantor
ganizationtundertakestandttransferstthroughtcontracting,tastwelltastitstcompliancetwithtappl
icabletlawstandtregulatorytobligations.
Whattaretthettypicaltfailurestintrisktmanagementtwhichtcantbetavoidedtiftittistembeddedtintth
etdecisiontmakingtprocess?t-
tans✔✔Programtnottintegratedtintotstrategytortitstexecution;tFocusedtontthetwrongtrisks;tN
ottexecutedtintatrepeatabletprocess;tRisktmanagementtistpracticedtintatsilo;tActivitytnottvie
wedtastbeingtvaluetadded
StrategictPlant-
tans✔✔Determinestthattactionstthetorganizationtwillttaketattanytstagetoftthetplanningtperiod
tastcircumstancestchange.
,Risktownert-
tans✔✔Thetindividualtwhotistultimatelytaccountabletfortensuringtthattrisktistmanagedtappro
priately,tincludingtthetimplementationtoftselectedtresponses.
RisktIdentificationtProcesst-tans✔✔Finding,tRecognizingtandtRecordingtRisks
SupporttFunction:tCompliancet-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftrisktrelatedttotregulationstthattmayt
affecttthetorganization'stabilityttotoperatetintitstrespectivetjurisdictions,tastwelltastactivitiestt
hattfalltwithintitstcompliancetandtethicstprograms.
Totsuccessfullytintegratetrisktmanagementtintotdecisiontmaking,trisktmanagementtprofessi
onalstwilltrelytontstrategiestthattdrawtontpersonaltandttechnicaltskillstint-
tans✔✔Buildingtorganizationaltawareness;t.tDifferentiatingtthetdifferentttypestoftdecisionst
usedtintvaryingtsituationstusingtelementstoftdecisiontquality;tPerformingtvarioustrolestintthet
takingtrisktintotaccounttintdecision-makingtprocess
Strategyt-
tans✔✔Atcompletetplantoftactiontfortwhatevertsituationstmighttarisetintachievingtantorganiz
ation'stgoalstwithintthetestablishedttime.
Riskttolerancet-
tans✔✔Thetamounttoftuncertaintytantorganizationtistpreparedttotaccepttinttotaltortmoretnarr
owlytwithintatcertaintbusinesstunit,tatparticulartrisktcategorytortfortatspecifictinitiative.
StrategictRisktManagementt-
tans✔✔Atbusinesstdisciplinetthattdrivestdeliberationtandtactiontregardingtuncertaintiestand
tuntappedtopportunitiestthattaffecttantorganization'ststrategytandtstrategictexecution.
ValuetChaint-
tans✔✔Thetseriestoftfunctions,tprocesses,tmaterialstandtactivitiest(inputs)tfromtconceptttott
heteventualtendtusertthattcreatestandtbuildstvaluetatteverytsteptintorderttotdelivertatproductt
ortservice.
Totbuildtorganizationaltawareness,tthetrisktmanagementtprofessionaltneedsttotdotthetfollo
wing:t-
tans✔✔Betatpersuasivetcommunicatortandtfacilitator;tHavetatcleartcommunicationtplan;tEn
gagetinterestedtparties,tincludingtprimarytandtsecondarytaudiences;tDemonstratetthattriskt
managementtcreatestthetmosttvaluet;tDeveloptfeedbacktloopstfortcontinuoustlearning
RisktAnalysist-
tans✔✔Thetprocesstoftcharacterizingtandtunderstandingtthetnaturetoftrisktandtoftconsideri
ngtthetleveltoftrisktintthetcontexttoftthetorganization'stwillingnessttotaccepttrisk.
, SupporttFunction:tSafetyt-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftriskstfocusedtontpreservingtthetph
ysicaltwell-beingtoftemployeestandtthirdtparties.
Likelihood,tConsequences,tothertcriteriatsuchtasttiming,tduration,tvulnerabilitytandtinterdep
endenciest-tans✔✔Risktisttypicallytanalyzedtontthetbasistof
SupporttFunction:tInformationtSecurityt-
tans✔✔RisktIdentification,tassessmenttandttreatmenttoftrisktarisingtourtoftortaffectingtinfor
mationtandttechnologytinfrastructure.
Totbuildtorganizationaltawareness,trisktmanagementtcreatestthetmosttvaluetwhent-
tans✔✔RisktmanagementtAlignstwithtstrategictgoals;tTakestcorporatetculturetintotaccount;
tInvolvestkeytenterprisetfunctions
FinancialtStatementst-
tans✔✔Internaltsourcetoftinformationtthattincludestfinancialtanalyticstortprojections
strategictplanningtteamt-
tans✔✔Thetrisktmanagertshouldtbetatparttoftthet_______________________ ttotprovidetth
etstructuretdisciplinetfortconsiderationtoftriskstintatstrategictportfolio.
InternaltAudittReportst-
tans✔✔Internaltsourcetoftinformationtthattfocusestontbusinesstpracticestimportantttotthetgo
alstandtreflectiontoftregulatorytenvironmenttoftthetorganization
risktmanagementt-
tans✔✔__________________ tshouldtbetantagendatitemtatteverytstrategytsession.
SupporttFunction:tFacilitiest-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftthetorganization'stproperties,tequi
pmenttandtphysicaltinfrastructuretsystems.
Simpletandtfrequentt-
tans✔✔Attypetoftdecisiontthattaretautomatic,ttakentintthetmoment.tThesetdecisionstgeneral
lytrelytontthetknowledgetandtcapabilitytoftthetdecisiontmakertusingtthetback-of-the-
napkinttechnique.
Bowttietanalysist-tans✔✔hazardtanalysisttechniquet(causetandtconsequence)
Businesstimpacttanalysist-
tans✔✔considertbusinesstimpactstattatlocationtortfromtatspecifictprocess
SupporttFunctions:tQualityt-
tans✔✔Risktidentification, tassessmenttandttreatmenttoftriskstrelatedttotproductstandtservic
es.
