RIMS-CRMP EXAM QUESTIONS AND
ANSWERS
A risk management professional advises management on the status of key risks by
_______________ .
A. annually identifying the inventory of risks
B. providing information about competitors' risk management plan
C. providing insights into the changing characteristics of a risk
D. summarizing internal audit reports -Answer-C. providing insights into the changing
characteristics of a risk
STEEP is a method used for strategic planning. The acronym STEEP stands for
_______________ .
A. security, technical, emerging, external, profit
B. social, technological, economic, environmental, political
C. standard, technique, enterprise, environmental, process
D. social, theory, external, engaging, program -Answer-B. social, technological,
economic, environmental, political
Once risks have been analyzed, the risk management professional should evaluate
the risks against the risk _______________ .
A. appetite
B. monitoring plan
C. treatment
D. underwriting criteria -Answer-A. appetite
After validating the training curricula, a risk management professional
A. develops training
B. develops and schedules training
C. matches training to audience
D. schedules and conducts training -Answer-D. schedules and conducts training
What can a risk management professional recommend to management to protect an
organization's critical infrastructure from a cyber attack?
A. implement password protocols
B. buy a tower of cyber liability insurance
C. ensure employees do not post on social media
D. monitor employees use of the internet -Answer-A. implement password protocols
Risk tolerance is defined as the _______________ .
A. amount of uncertainty that an organization is prepared to accept
B. desired level of risk that an organization believes is optimal to achieve its goals
, C. amount of risk that an organization can actually assume
D. norms and traditions of the individuals of an organization and how they act on risk
-Answer-A. amount of uncertainty that an organization is prepared to accept
What is the role of risk management in the strategic planning process?
A. challenge the decisions made
B. develop risk treatment plans
C. draft the decisions to be made
D. identify threats and opportunities -Answer-D. identify threats and opportunities
When measuring the financial effectiveness of an organization's risk management
plan, the risk management professional should _______________ .
A. determine the overall cost of risk
B. exclude risk financing costs
C. involve the risk management committee
D. determine the maximum level of uncertainty the organization can tolerate -
Answer-A. determine the overall cost of risk
How can an ERM heat map help to facilitate discussion for a risk committee?
A. It provides a risk register for an organization to be able to review all risks.
B. It identifies how mitigation efforts could affect frequency and severity of a risk.
C. It provides a map for insurance companies to price an organization's premiums.
D. It can help benchmark risks for comparison with others in the industry -Answer-B.
It identifies how mitigation efforts could affect frequency and severity of a risk.
A success criterion for a risk management program includes
A. Risk accountability
B. Dependencies
C. Organizational structure
D. Performance -Answer-A. Risk accountability
Which of the following is the BEST example of a reason to revise a risk management
program?
A. A new exposure arises such as a new merger or acquisition
B. Significant turnover within the risk management function
C. New product offerings by the insurance industry
D. A revision of a company's annual earnings forecast -Answer-A. A new exposure
arises such as a new merger or acquisition
A potential DISADVANTAGE of benchmarking is that it
A. May limit the type of information obtained if it only considers organizations viewed
as a direct competitor
B. Focuses primarily on areas of overlap in product or services and does not
consider areas in which organizations differ
ANSWERS
A risk management professional advises management on the status of key risks by
_______________ .
A. annually identifying the inventory of risks
B. providing information about competitors' risk management plan
C. providing insights into the changing characteristics of a risk
D. summarizing internal audit reports -Answer-C. providing insights into the changing
characteristics of a risk
STEEP is a method used for strategic planning. The acronym STEEP stands for
_______________ .
A. security, technical, emerging, external, profit
B. social, technological, economic, environmental, political
C. standard, technique, enterprise, environmental, process
D. social, theory, external, engaging, program -Answer-B. social, technological,
economic, environmental, political
Once risks have been analyzed, the risk management professional should evaluate
the risks against the risk _______________ .
A. appetite
B. monitoring plan
C. treatment
D. underwriting criteria -Answer-A. appetite
After validating the training curricula, a risk management professional
A. develops training
B. develops and schedules training
C. matches training to audience
D. schedules and conducts training -Answer-D. schedules and conducts training
What can a risk management professional recommend to management to protect an
organization's critical infrastructure from a cyber attack?
A. implement password protocols
B. buy a tower of cyber liability insurance
C. ensure employees do not post on social media
D. monitor employees use of the internet -Answer-A. implement password protocols
Risk tolerance is defined as the _______________ .
A. amount of uncertainty that an organization is prepared to accept
B. desired level of risk that an organization believes is optimal to achieve its goals
, C. amount of risk that an organization can actually assume
D. norms and traditions of the individuals of an organization and how they act on risk
-Answer-A. amount of uncertainty that an organization is prepared to accept
What is the role of risk management in the strategic planning process?
A. challenge the decisions made
B. develop risk treatment plans
C. draft the decisions to be made
D. identify threats and opportunities -Answer-D. identify threats and opportunities
When measuring the financial effectiveness of an organization's risk management
plan, the risk management professional should _______________ .
A. determine the overall cost of risk
B. exclude risk financing costs
C. involve the risk management committee
D. determine the maximum level of uncertainty the organization can tolerate -
Answer-A. determine the overall cost of risk
How can an ERM heat map help to facilitate discussion for a risk committee?
A. It provides a risk register for an organization to be able to review all risks.
B. It identifies how mitigation efforts could affect frequency and severity of a risk.
C. It provides a map for insurance companies to price an organization's premiums.
D. It can help benchmark risks for comparison with others in the industry -Answer-B.
It identifies how mitigation efforts could affect frequency and severity of a risk.
A success criterion for a risk management program includes
A. Risk accountability
B. Dependencies
C. Organizational structure
D. Performance -Answer-A. Risk accountability
Which of the following is the BEST example of a reason to revise a risk management
program?
A. A new exposure arises such as a new merger or acquisition
B. Significant turnover within the risk management function
C. New product offerings by the insurance industry
D. A revision of a company's annual earnings forecast -Answer-A. A new exposure
arises such as a new merger or acquisition
A potential DISADVANTAGE of benchmarking is that it
A. May limit the type of information obtained if it only considers organizations viewed
as a direct competitor
B. Focuses primarily on areas of overlap in product or services and does not
consider areas in which organizations differ
