5/23/25, 8:03 AM CRM Principles of Risk Management COMPLETE EXAM QUESTIONS AND VERIFIED ANSWERS (DETAILED & ELABORAT…
CRM Principles of Risk Management COMPLETE
EXAM QUESTIONS AND VERIFIED ANSWERS
(DETAILED & ELABORATED) 100% SOLVED
2025!!
Save
Terms in this set (55)
1. protects organization's reputation/brand
Explain the impacts of an 2. Increases profitability
effective Risk 3. Raises awareness of risk management
Management program on 4. supports managerial objective
an organization (6) 5. Improves morale and productivity
6. Improves quality, process and technology
a functional, siloed, view of risk affecting one or
Define Traditional Risk
more areas of the organization (focuses on pure
Management (TRM).
risk)
Define Enterprise Risk across functional view of risks affecting all areas of
Management (ERM). the entire organization (embraces speculative risk)
1. manages downside risks
2. oriented to cause-of-loss, tied to minimizing risk
Describe characteristics impact
of Traditional Risk 3. functional siloed treatement of risk
Management (TRM) (5) 4. risk ID and ownership with individual employee or
department
5. Reactive
https://quizlet.com/1047370297/crm-principles-of-risk-management-complete-exam-questions-and-verified-answers-detailed-elaborated-100-solv… 1/11
, 5/23/25, 8:03 AM CRM Principles of Risk Management COMPLETE EXAM QUESTIONS AND VERIFIED ANSWERS (DETAILED & ELABORAT…
1) risk has potential upside and downside
2) tied to strategic objectives
Describe characteristics
3) cross functional treatment of risk
of Enterprise Risk
4) uses subject matter experts and risk committees
Management (ERM) (5)
to identify risk and spreads accountability of risk
5) proactive/opportunistic
1.Operational Risk: related to management activities
(speculative)
List the ERM broad 2) Financial Risk: related to financial activities
categories of risk and (speculative)
give examples of each
(4). 3) Hazard Risk: covered by insurance (pure)
4) Strategic Risk: related to an organization's
strategic plan (speculative)
a set of understandings, knowledge, beliefs, values
Define Organizational and habits toward risk, that characterize a human
Risk Culture (ORC). group (organization) in search of a common
purpose
1. Tone at the top - leadership clarity of direction
and a positive corporate attitude toward risk
2. Corporate Governance - clear responsibility for
risk management; transparency and timeliness of risk
Explain the four information
characteristics of an 3. Decision Making - well informed decisions
effective ORC(4). regarding risk; performance evaluations encourage
good risk management decisions
4. Authority and Accountability - embedding risk
management abilities and responsibilities within the
organization.
https://quizlet.com/1047370297/crm-principles-of-risk-management-complete-exam-questions-and-verified-answers-detailed-elaborated-100-solv… 2/11
CRM Principles of Risk Management COMPLETE
EXAM QUESTIONS AND VERIFIED ANSWERS
(DETAILED & ELABORATED) 100% SOLVED
2025!!
Save
Terms in this set (55)
1. protects organization's reputation/brand
Explain the impacts of an 2. Increases profitability
effective Risk 3. Raises awareness of risk management
Management program on 4. supports managerial objective
an organization (6) 5. Improves morale and productivity
6. Improves quality, process and technology
a functional, siloed, view of risk affecting one or
Define Traditional Risk
more areas of the organization (focuses on pure
Management (TRM).
risk)
Define Enterprise Risk across functional view of risks affecting all areas of
Management (ERM). the entire organization (embraces speculative risk)
1. manages downside risks
2. oriented to cause-of-loss, tied to minimizing risk
Describe characteristics impact
of Traditional Risk 3. functional siloed treatement of risk
Management (TRM) (5) 4. risk ID and ownership with individual employee or
department
5. Reactive
https://quizlet.com/1047370297/crm-principles-of-risk-management-complete-exam-questions-and-verified-answers-detailed-elaborated-100-solv… 1/11
, 5/23/25, 8:03 AM CRM Principles of Risk Management COMPLETE EXAM QUESTIONS AND VERIFIED ANSWERS (DETAILED & ELABORAT…
1) risk has potential upside and downside
2) tied to strategic objectives
Describe characteristics
3) cross functional treatment of risk
of Enterprise Risk
4) uses subject matter experts and risk committees
Management (ERM) (5)
to identify risk and spreads accountability of risk
5) proactive/opportunistic
1.Operational Risk: related to management activities
(speculative)
List the ERM broad 2) Financial Risk: related to financial activities
categories of risk and (speculative)
give examples of each
(4). 3) Hazard Risk: covered by insurance (pure)
4) Strategic Risk: related to an organization's
strategic plan (speculative)
a set of understandings, knowledge, beliefs, values
Define Organizational and habits toward risk, that characterize a human
Risk Culture (ORC). group (organization) in search of a common
purpose
1. Tone at the top - leadership clarity of direction
and a positive corporate attitude toward risk
2. Corporate Governance - clear responsibility for
risk management; transparency and timeliness of risk
Explain the four information
characteristics of an 3. Decision Making - well informed decisions
effective ORC(4). regarding risk; performance evaluations encourage
good risk management decisions
4. Authority and Accountability - embedding risk
management abilities and responsibilities within the
organization.
https://quizlet.com/1047370297/crm-principles-of-risk-management-complete-exam-questions-and-verified-answers-detailed-elaborated-100-solv… 2/11
