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RIMS CRMP Exam Study Guide Common
Terms Questions and Correct Answers/
Latest Update / Already Graded
Benchmarking
Ans: The process of measuring the performance of an
organization against external standards of reference that
frequently come from similar organizations doing similar
things.
Corporate governance
Ans: The system of rules, practices and processes by which a
company is directed and controlled
Enterprise risk management
Ans: A strategic discipline that supports the achievement of an
organization's objectives by addressing the full spectrum of its
risk and managing the combined impact of those risks as an
interrelated risk portfolio.
Strategy: Consider all risks and exploit risks as part of strategy
Measurement: Include Upside of Risk (Bugalla and Kugler)
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Look at building, expanding, exploiting to add value
Push and Pull risk performance data
This approach is Coordinated & Strategic
Gap analysis
Ans: Comparison of an existing process or procedure to
recognized standards in order to identify deficiencies or
excesses in the existing process.
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.
Key performance indicator (KPI)
Ans: An activity that signals the achievement of organizational
objectives
Key risk indicator (KRI)
Ans: A measurement of how risk and volatility relate to
achieving organizational objectives
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Designed to manage the downside of risk
Leading indicators of risk to business performance; giving early
warning of potential risk
early signal of changes in risk exposures in various areas of the
enterprise
Risk Metrics
Ans: Integrated into the performance objectives of the
organization for monitoring risks
Examples: KPIs and KRIs
Indemnification
Ans: Contractual obligation placed on the indemnifier to return
the indemnified to essentially the same financial condition that
existed prior to the loss or claim, to stand in as the source for
financing the legal liability
Contractual Risk Transfer
All rights reserved © 2025/ 2026 |
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Ans: A legally binding agreement between two parties whereby
one agrees to indemnify and hold another party harmless for
specified actions, inactions, injuries or damages
Hold Harmless
Ans: wording that requires one party to shield the other party
from the effects of the legal liability assignable to transfer or
obligor
Risk Transfer/Sharing
Ans: Action taken when 1) costs of retaining risks exceeds the
organization's risk tolerance; 2) risks (or some portion) can be
transferred at a lower cost; 3) risks should be apportioned
based on an agreement, and 4) it is required by regulation
Insurance
Ans: Risk-transfer mechanism that ensured full or partial
financial compensation for the loss, damage and legal
obligations of a policyholder or beneficiary
PESTLE analysis
All rights reserved © 2025/ 2026 |
RIMS CRMP Exam Study Guide Common
Terms Questions and Correct Answers/
Latest Update / Already Graded
Benchmarking
Ans: The process of measuring the performance of an
organization against external standards of reference that
frequently come from similar organizations doing similar
things.
Corporate governance
Ans: The system of rules, practices and processes by which a
company is directed and controlled
Enterprise risk management
Ans: A strategic discipline that supports the achievement of an
organization's objectives by addressing the full spectrum of its
risk and managing the combined impact of those risks as an
interrelated risk portfolio.
Strategy: Consider all risks and exploit risks as part of strategy
Measurement: Include Upside of Risk (Bugalla and Kugler)
All rights reserved © 2025/ 2026 |
, Page |2
Look at building, expanding, exploiting to add value
Push and Pull risk performance data
This approach is Coordinated & Strategic
Gap analysis
Ans: Comparison of an existing process or procedure to
recognized standards in order to identify deficiencies or
excesses in the existing process.
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.
Key performance indicator (KPI)
Ans: An activity that signals the achievement of organizational
objectives
Key risk indicator (KRI)
Ans: A measurement of how risk and volatility relate to
achieving organizational objectives
All rights reserved © 2025/ 2026 |
, Page |3
Designed to manage the downside of risk
Leading indicators of risk to business performance; giving early
warning of potential risk
early signal of changes in risk exposures in various areas of the
enterprise
Risk Metrics
Ans: Integrated into the performance objectives of the
organization for monitoring risks
Examples: KPIs and KRIs
Indemnification
Ans: Contractual obligation placed on the indemnifier to return
the indemnified to essentially the same financial condition that
existed prior to the loss or claim, to stand in as the source for
financing the legal liability
Contractual Risk Transfer
All rights reserved © 2025/ 2026 |
, Page |4
Ans: A legally binding agreement between two parties whereby
one agrees to indemnify and hold another party harmless for
specified actions, inactions, injuries or damages
Hold Harmless
Ans: wording that requires one party to shield the other party
from the effects of the legal liability assignable to transfer or
obligor
Risk Transfer/Sharing
Ans: Action taken when 1) costs of retaining risks exceeds the
organization's risk tolerance; 2) risks (or some portion) can be
transferred at a lower cost; 3) risks should be apportioned
based on an agreement, and 4) it is required by regulation
Insurance
Ans: Risk-transfer mechanism that ensured full or partial
financial compensation for the loss, damage and legal
obligations of a policyholder or beneficiary
PESTLE analysis
All rights reserved © 2025/ 2026 |
