RIMS - CRMP Complete Study Guide;
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1. Risks: The effect of uncertainty on objectives
The chance of something happening that will have an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as they are
discovered
2. Enterprise Risk Management: A strategic business discipline that supports the
achievement of an organization's objectives by addressing the full spectrum of its
risks and managing the combined impact of those risks as an interrelated risk
portfolio.
3. Support Function: Business continuity and crisis management: Risk identifi-
cation, assessment and creation of emergency response and recovery plans related
to threats or hazards that might lead to operational disruptions
4. Analysis: A systematic examination and evaluation of data or information by
breaking it into its component parts to uncover their relationships. An examination of
data and facts to uncover and understand cause-effect relationships, thus providing
basis for problem solving and decision making.
5. To embed risk management in both routine and strategic decision, what
should managers be able to recognize?: The type of decision being made; Who
should be included in the decision making process; Where in the process decisions
are being made
6. Risk management strategies' general focus: Meeting or exceeding an organi-
zation's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
7. Support Function: Internal Audit: Risk identification, assessment and treatment
through audit plans with focus on fraud, corruption, regulatory noncompliance and/or
misrepresentation related to the organization's internal control systems, financial
operations, financial statements and reporting as well as enterprise risk and the
organization's risk management framework and process.
8. What steps can the risk management professional take to embed risk
management in decision making?: Include risk assessment in planning process;
Leverage cross-functional risk assessment team and subject matter experts to
identify enterprise risks; Consider cascading and cumulative effects
9. Gap Analysis: Technique that can be used to determine what steps might need
to be taken to improve the organization's capacity to move from a current state to a
desired future state.
10. Risk appetite: The total exposed amount that an organization wishes to un-
dertake on the basis of risk-return trade-offs for one or more desire and expected
outcomes.
, RIMS - CRMP Complete Study Guide;
Study online at https://quizlet.com/_fa3sx6
11. Communication and Consultation: Risk management professional's role in
Implementing Risk Strategies
12. Support Function: Legal: Risk identification, assessment and treatment of
risks related to the obligation an organization undertakes and transfers through con-
tracting, as well as its compliance with applicable laws and regulatory obligations.
13. What are the typical failures in risk management which can be avoided if
it is embedded in the decision making process?: Program not integrated into
strategy or its execution; Focused on the wrong risks; Not executed in a repeatable
process; Risk management is practiced in a silo; Activity not viewed as being value
added
14. Strategic Plan: Determines that actions the organization will take at any stage
of the planning period as circumstances change.
15. Risk owner: The individual who is ultimately accountable for ensuring that risk
is managed appropriately, including the implementation of selected responses.
16. Risk Identification Process: Finding, Recognizing and Recording Risks
17. Support Function: Compliance: Risk identification, assessment and treatment
of risk related to regulations that may affect the organization's ability to operate in its
respective jurisdictions, as well as activities that fall within its compliance and ethics
programs.
18. To successfully integrate risk management into decision making, risk
management professionals will rely on strategies that draw on personal and
technical skills in: Building organizational awareness; . Differentiating the different
types of decisions used in varying situations using elements of decision quality;
Performing various roles in the taking risk into account in decision-making process
19. Strategy: A complete plan of action for whatever situations might arise in achiev-
ing an organization's goals within the established time.
20. Risk tolerance: The amount of uncertainty an organization is prepared to ac-
cept in total or more narrowly within a certain business unit, a particular risk category
or for a specific initiative.
21. Strategic Risk Management: A business discipline that drives deliberation and
action regarding uncertainties and untapped opportunities that affect an organiza-
tion's strategy and strategic execution.
22. Value Chain: The series of functions, processes, materials and activities (in-
puts) from concept to the eventual end user that creates and builds value at every
step in order to deliver a product or service.
23. To build organizational awareness, the risk management professional
needs to do the following:: Be a persuasive communicator and facilitator; Have
a clear communication plan; Engage interested parties, including primary and
, RIMS - CRMP Complete Study Guide;
Study online at https://quizlet.com/_fa3sx6
secondary audiences; Demonstrate that risk management creates the most value ;
Develop feedback loops for continuous learning
24. Risk Analysis: 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.
25. Support Function: Safety: Risk identification, assessment and treatment of
risks focused on preserving the physical well-being of employees and third parties.
26. Likelihood, Consequences, other criteria such as timing, duration, vulner-
ability and interdependencies: Risk is typically analyzed on the basis of
27. Support Function: Information Security: Risk Identification, assessment and
treatment of risk arising our of or affecting information and technology infrastructure.
28. To build organizational awareness, risk management creates the most
value when: Risk management Aligns with strategic goals; Takes corporate culture
into account; Involves key enterprise functions
29. Financial Statements: Internal source of information that includes financial
analytics or projections
30. strategic planning team: The risk manager should be a part of the
_______________________ to provide the structure discipline for consideration of
risks in a strategic portfolio.
31. Internal Audit Reports: Internal source of information that focuses on business
practices important to the goals and reflection of regulatory environment of the
organization
32. risk management: __________________ should be an agenda item at every
strategy session.
33. Support Function: Facilities: Risk identification, assessment and treatment of
the organization's properties, equipment and physical infrastructure systems.
34. Simple and frequent: A type of decision that are automatic, taken in the mo-
ment. These decisions generally rely on the knowledge and capability of the decision
maker using the back-of-the-napkin technique.
35. Bow tie analysis: hazard analysis technique (cause and consequence)
36. Business impact analysis: consider business impacts at a location or from a
specific process
37. Support Functions: Quality: Risk identification, assessment and treatment of
risks related to products and services.
38. Significant importance or complex: A type of decision that require more
deliberate effort. These decisions generally have some period of planning and a
longer decision timeline.
39. Organizational Structure: Internal source of information that reports from dif-
ferent departments (HR, Legal, risk, operations, HS, environment, etc.)
Study online at https://quizlet.com/_fa3sx6
1. Risks: The effect of uncertainty on objectives
The chance of something happening that will have an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as they are
discovered
2. Enterprise Risk Management: A strategic business discipline that supports the
achievement of an organization's objectives by addressing the full spectrum of its
risks and managing the combined impact of those risks as an interrelated risk
portfolio.
3. Support Function: Business continuity and crisis management: Risk identifi-
cation, assessment and creation of emergency response and recovery plans related
to threats or hazards that might lead to operational disruptions
4. Analysis: A systematic examination and evaluation of data or information by
breaking it into its component parts to uncover their relationships. An examination of
data and facts to uncover and understand cause-effect relationships, thus providing
basis for problem solving and decision making.
5. To embed risk management in both routine and strategic decision, what
should managers be able to recognize?: The type of decision being made; Who
should be included in the decision making process; Where in the process decisions
are being made
6. Risk management strategies' general focus: Meeting or exceeding an organi-
zation's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
7. Support Function: Internal Audit: Risk identification, assessment and treatment
through audit plans with focus on fraud, corruption, regulatory noncompliance and/or
misrepresentation related to the organization's internal control systems, financial
operations, financial statements and reporting as well as enterprise risk and the
organization's risk management framework and process.
8. What steps can the risk management professional take to embed risk
management in decision making?: Include risk assessment in planning process;
Leverage cross-functional risk assessment team and subject matter experts to
identify enterprise risks; Consider cascading and cumulative effects
9. Gap Analysis: Technique that can be used to determine what steps might need
to be taken to improve the organization's capacity to move from a current state to a
desired future state.
10. Risk appetite: The total exposed amount that an organization wishes to un-
dertake on the basis of risk-return trade-offs for one or more desire and expected
outcomes.
, RIMS - CRMP Complete Study Guide;
Study online at https://quizlet.com/_fa3sx6
11. Communication and Consultation: Risk management professional's role in
Implementing Risk Strategies
12. Support Function: Legal: Risk identification, assessment and treatment of
risks related to the obligation an organization undertakes and transfers through con-
tracting, as well as its compliance with applicable laws and regulatory obligations.
13. What are the typical failures in risk management which can be avoided if
it is embedded in the decision making process?: Program not integrated into
strategy or its execution; Focused on the wrong risks; Not executed in a repeatable
process; Risk management is practiced in a silo; Activity not viewed as being value
added
14. Strategic Plan: Determines that actions the organization will take at any stage
of the planning period as circumstances change.
15. Risk owner: The individual who is ultimately accountable for ensuring that risk
is managed appropriately, including the implementation of selected responses.
16. Risk Identification Process: Finding, Recognizing and Recording Risks
17. Support Function: Compliance: Risk identification, assessment and treatment
of risk related to regulations that may affect the organization's ability to operate in its
respective jurisdictions, as well as activities that fall within its compliance and ethics
programs.
18. To successfully integrate risk management into decision making, risk
management professionals will rely on strategies that draw on personal and
technical skills in: Building organizational awareness; . Differentiating the different
types of decisions used in varying situations using elements of decision quality;
Performing various roles in the taking risk into account in decision-making process
19. Strategy: A complete plan of action for whatever situations might arise in achiev-
ing an organization's goals within the established time.
20. Risk tolerance: The amount of uncertainty an organization is prepared to ac-
cept in total or more narrowly within a certain business unit, a particular risk category
or for a specific initiative.
21. Strategic Risk Management: A business discipline that drives deliberation and
action regarding uncertainties and untapped opportunities that affect an organiza-
tion's strategy and strategic execution.
22. Value Chain: The series of functions, processes, materials and activities (in-
puts) from concept to the eventual end user that creates and builds value at every
step in order to deliver a product or service.
23. To build organizational awareness, the risk management professional
needs to do the following:: Be a persuasive communicator and facilitator; Have
a clear communication plan; Engage interested parties, including primary and
, RIMS - CRMP Complete Study Guide;
Study online at https://quizlet.com/_fa3sx6
secondary audiences; Demonstrate that risk management creates the most value ;
Develop feedback loops for continuous learning
24. Risk Analysis: 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.
25. Support Function: Safety: Risk identification, assessment and treatment of
risks focused on preserving the physical well-being of employees and third parties.
26. Likelihood, Consequences, other criteria such as timing, duration, vulner-
ability and interdependencies: Risk is typically analyzed on the basis of
27. Support Function: Information Security: Risk Identification, assessment and
treatment of risk arising our of or affecting information and technology infrastructure.
28. To build organizational awareness, risk management creates the most
value when: Risk management Aligns with strategic goals; Takes corporate culture
into account; Involves key enterprise functions
29. Financial Statements: Internal source of information that includes financial
analytics or projections
30. strategic planning team: The risk manager should be a part of the
_______________________ to provide the structure discipline for consideration of
risks in a strategic portfolio.
31. Internal Audit Reports: Internal source of information that focuses on business
practices important to the goals and reflection of regulatory environment of the
organization
32. risk management: __________________ should be an agenda item at every
strategy session.
33. Support Function: Facilities: Risk identification, assessment and treatment of
the organization's properties, equipment and physical infrastructure systems.
34. Simple and frequent: A type of decision that are automatic, taken in the mo-
ment. These decisions generally rely on the knowledge and capability of the decision
maker using the back-of-the-napkin technique.
35. Bow tie analysis: hazard analysis technique (cause and consequence)
36. Business impact analysis: consider business impacts at a location or from a
specific process
37. Support Functions: Quality: Risk identification, assessment and treatment of
risks related to products and services.
38. Significant importance or complex: A type of decision that require more
deliberate effort. These decisions generally have some period of planning and a
longer decision timeline.
39. Organizational Structure: Internal source of information that reports from dif-
ferent departments (HR, Legal, risk, operations, HS, environment, etc.)
