RIMS-CRMP VOCAB / DEFINITIONS
EXAM QUESTIONS AND ANSWERS
Internal Context -Answer-Identifies how risk strategy aligns with organizational risk
philosophy, goals, and objectives.
Scoping Risk Process -Answer-Specifies who is responsible for the execution of risk
management process, what data collection and analysis methodologies will be used,
and how information will be aggregated and reported to stakeholders.
Criteria -Answer-Operationalized to support clear and repeatable analysis based on
calculations of risk levels, measurements of management effectiveness, and residual
positions of risk that are monitored within established risk appetite and tolerance
thresholds.
Risk Analysis -Answer-The process of characterizing and understanding the nature
of risk and of considering the level of risk in the context of the organization's
willingness to accept risk in pursuit of its objectives.
Focus Groups -Answer-Create long transcripts of conversations that can be
organized thematically and support content analysis.
Financial Results -Answer-Can be measured against different independent variables
by using statistical analysis.
Survey Results -Answer-May benefit from a hybrid method where data is first
organized qualitatively and then scaled for quantitative analysis.
Risk Evalution -Answer-Combines results from risk analysis with measures of risk
appetite and tolerance levels to determine which risks are acceptable in their current
position and which require different solutions.
Collaboration -Answer-A fundamental competency since successful solutions must
be tied to business model drivers, objectives and those who have primary
responsibilities for managing risk, at times referenced as "risk owners".
COSO ERM -Answer-Widely accepted framework used by management to enhance
an organization's ability to manage uncertainty and to consider how much risk to
accept as it strives to increase enterprise value.
ISO 31000 -Answer-Put the emphasis squarely on risk management as a strategic
discipline for making risk-adjusted decisions. Its principles focus on disciplined
decision-making regarding risk and reward, with the aim of helping organizations
achieve their expected outcomes.
RIMS Risk Maturity Model -Answer-It focuses on seven essential attributes with 25
specific competency drivers (or behaviors) that organizations may or may not
, demonstrate along a maturity spectrum from ad hoc (does not exist) to leadership
(fully embedded across and through the organization).
Coaching -Answer-Practice of providing support and advice to an individual or group
in order to help them recognize ways in which they can improve their competencies
and effectiveness.
Maturity -Answer-Evolution toward the desired risk management attributes and
competency drivers.
Strategic Risk Assessment -Answer-Focus on the broader deliberation and actions
regarding uncertainties and untapped opportunities that affect an organization's
planned strategy and strategy execution, such as growth (e.g., opening new
markets) or contraction objectives (e.g., eliminating certain product or service lines).
Operational Risk Assessment -Answer-May be limited to uncertainties associated
with existing operations and plans (assets, processes, people, and systems in place)
in order to deliver a particular outcome, such as planned earnings.
Project Risk Assessment -Answer-Typically is used to assess uncertainties and
potential consequences related to expected outcomes of a particular project or
initiative, such as delivering the project within the planned time, budget, and scope.
SMART Goals -Answer-Simple, Measurable, Achievable, Realistic and Timely and
refers to characteristics of high quality goals and objectives.
Knowledge -Answer-Having a general business acumen will generate conversations
that lead to deeper knowledge and understanding of:
- Organizational structure
- What creates and sustains value
- Markets and market analysis
- How PESTLE Analysis applies to the organization
Skills -Answer-Communication, technical and interpersonal skills come into play in
obtaining organizational information, such as the following abilities:
- Read quickly and comprehend/retain what you are reading
- Recognize interdependencies and connections among varying sources of
information
- Pursue a line of reasoning
- Research and collect relevant information on a topic
Compile -Answer-Whereas information collection was broad and erred on the side of
too much information, the primary task at this stage is to begin to differentiate
between important information and less-improved information in the context of the
organization's objectives.
Organize -Answer-When your desk is clean and your files, whether paper or digital,
are easily accessible, you will be more at ease and able to quickly retrieve and re-
read or re-interpret information as you begin the process of synthesizing information.
EXAM QUESTIONS AND ANSWERS
Internal Context -Answer-Identifies how risk strategy aligns with organizational risk
philosophy, goals, and objectives.
Scoping Risk Process -Answer-Specifies who is responsible for the execution of risk
management process, what data collection and analysis methodologies will be used,
and how information will be aggregated and reported to stakeholders.
Criteria -Answer-Operationalized to support clear and repeatable analysis based on
calculations of risk levels, measurements of management effectiveness, and residual
positions of risk that are monitored within established risk appetite and tolerance
thresholds.
Risk Analysis -Answer-The process of characterizing and understanding the nature
of risk and of considering the level of risk in the context of the organization's
willingness to accept risk in pursuit of its objectives.
Focus Groups -Answer-Create long transcripts of conversations that can be
organized thematically and support content analysis.
Financial Results -Answer-Can be measured against different independent variables
by using statistical analysis.
Survey Results -Answer-May benefit from a hybrid method where data is first
organized qualitatively and then scaled for quantitative analysis.
Risk Evalution -Answer-Combines results from risk analysis with measures of risk
appetite and tolerance levels to determine which risks are acceptable in their current
position and which require different solutions.
Collaboration -Answer-A fundamental competency since successful solutions must
be tied to business model drivers, objectives and those who have primary
responsibilities for managing risk, at times referenced as "risk owners".
COSO ERM -Answer-Widely accepted framework used by management to enhance
an organization's ability to manage uncertainty and to consider how much risk to
accept as it strives to increase enterprise value.
ISO 31000 -Answer-Put the emphasis squarely on risk management as a strategic
discipline for making risk-adjusted decisions. Its principles focus on disciplined
decision-making regarding risk and reward, with the aim of helping organizations
achieve their expected outcomes.
RIMS Risk Maturity Model -Answer-It focuses on seven essential attributes with 25
specific competency drivers (or behaviors) that organizations may or may not
, demonstrate along a maturity spectrum from ad hoc (does not exist) to leadership
(fully embedded across and through the organization).
Coaching -Answer-Practice of providing support and advice to an individual or group
in order to help them recognize ways in which they can improve their competencies
and effectiveness.
Maturity -Answer-Evolution toward the desired risk management attributes and
competency drivers.
Strategic Risk Assessment -Answer-Focus on the broader deliberation and actions
regarding uncertainties and untapped opportunities that affect an organization's
planned strategy and strategy execution, such as growth (e.g., opening new
markets) or contraction objectives (e.g., eliminating certain product or service lines).
Operational Risk Assessment -Answer-May be limited to uncertainties associated
with existing operations and plans (assets, processes, people, and systems in place)
in order to deliver a particular outcome, such as planned earnings.
Project Risk Assessment -Answer-Typically is used to assess uncertainties and
potential consequences related to expected outcomes of a particular project or
initiative, such as delivering the project within the planned time, budget, and scope.
SMART Goals -Answer-Simple, Measurable, Achievable, Realistic and Timely and
refers to characteristics of high quality goals and objectives.
Knowledge -Answer-Having a general business acumen will generate conversations
that lead to deeper knowledge and understanding of:
- Organizational structure
- What creates and sustains value
- Markets and market analysis
- How PESTLE Analysis applies to the organization
Skills -Answer-Communication, technical and interpersonal skills come into play in
obtaining organizational information, such as the following abilities:
- Read quickly and comprehend/retain what you are reading
- Recognize interdependencies and connections among varying sources of
information
- Pursue a line of reasoning
- Research and collect relevant information on a topic
Compile -Answer-Whereas information collection was broad and erred on the side of
too much information, the primary task at this stage is to begin to differentiate
between important information and less-improved information in the context of the
organization's objectives.
Organize -Answer-When your desk is clean and your files, whether paper or digital,
are easily accessible, you will be more at ease and able to quickly retrieve and re-
read or re-interpret information as you begin the process of synthesizing information.
