RIMS CRMP CERTIFICATION EVALUATION
EXAMS SOLVED QUESTIONS STUDY GUIDE
GUARANTEED TO PASS
◉ Enterprise Risk Management. Answer: 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.
◉ Support Function: Business continuity and crisis management.
Answer: Risk identification, assessment and creation of emergency
response and recovery plans related to threats or hazards that might
lead to operational disruptions
◉ Analysis. Answer: 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.
◉ To embed risk management in both routine and strategic decision,
what should managers be able to recognize?. Answer: The type of
decision being made; Who should be included in the decision making
process; Where in the process decisions are being made
,◉ Risk management strategies' general focus. Answer: Meeting or
exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
◉ Support Function: Internal Audit. Answer: 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.
◉ What steps can the risk management professional take to embed
risk management in decision making?. Answer: 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
◉ Gap Analysis. Answer: 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.
◉ Risk appetite. Answer: The total exposed amount that an
organization wishes to undertake on the basis of risk-return trade-offs
for one or more desire and expected outcomes.
◉ Communication and Consultation. Answer: Risk management
professional's role in Implementing Risk Strategies
,◉ Support Function: Legal. Answer: Risk identification, assessment
and treatment of risks related to the obligation an organization
undertakes and transfers through contracting, as well as its
compliance with applicable laws and regulatory obligations.
◉ What are the typical failures in risk management which can be
avoided if it is embedded in the decision making process?. Answer:
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
◉ Strategic Plan. Answer: Determines that actions the organization
will take at any stage of the planning period as circumstances change.
◉ Risk owner. Answer: The individual who is ultimately accountable
for ensuring that risk is managed appropriately, including the
implementation of selected responses.
◉ Risk Identification Process. Answer: Finding, Recognizing and
Recording Risks
◉ Support Function: Compliance. Answer: 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.
, ◉ To successfully integrate risk management into decision making,
risk management professionals will rely on strategies that draw on
personal and technical skills in. Answer: 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
◉ Strategy. Answer: A complete plan of action for whatever situations
might arise in achieving an organization's goals within the established
time.
◉ Risk tolerance. Answer: The amount of uncertainty an organization
is prepared to accept in total or more narrowly within a certain
business unit, a particular risk category or for a specific initiative.
◉ Strategic Risk Management. Answer: A business discipline that
drives deliberation and action regarding uncertainties and untapped
opportunities that affect an organization's strategy and strategic
execution.
◉ Value Chain. Answer: The series of functions, processes, materials
and activities (inputs) from concept to the eventual end user that
creates and builds value at every step in order to deliver a product or
service.
◉ To build organizational awareness, the risk management
professional needs to do the following:. Answer: Be a persuasive
communicator and facilitator; Have a clear communication plan;
EXAMS SOLVED QUESTIONS STUDY GUIDE
GUARANTEED TO PASS
◉ Enterprise Risk Management. Answer: 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.
◉ Support Function: Business continuity and crisis management.
Answer: Risk identification, assessment and creation of emergency
response and recovery plans related to threats or hazards that might
lead to operational disruptions
◉ Analysis. Answer: 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.
◉ To embed risk management in both routine and strategic decision,
what should managers be able to recognize?. Answer: The type of
decision being made; Who should be included in the decision making
process; Where in the process decisions are being made
,◉ Risk management strategies' general focus. Answer: Meeting or
exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
◉ Support Function: Internal Audit. Answer: 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.
◉ What steps can the risk management professional take to embed
risk management in decision making?. Answer: 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
◉ Gap Analysis. Answer: 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.
◉ Risk appetite. Answer: The total exposed amount that an
organization wishes to undertake on the basis of risk-return trade-offs
for one or more desire and expected outcomes.
◉ Communication and Consultation. Answer: Risk management
professional's role in Implementing Risk Strategies
,◉ Support Function: Legal. Answer: Risk identification, assessment
and treatment of risks related to the obligation an organization
undertakes and transfers through contracting, as well as its
compliance with applicable laws and regulatory obligations.
◉ What are the typical failures in risk management which can be
avoided if it is embedded in the decision making process?. Answer:
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
◉ Strategic Plan. Answer: Determines that actions the organization
will take at any stage of the planning period as circumstances change.
◉ Risk owner. Answer: The individual who is ultimately accountable
for ensuring that risk is managed appropriately, including the
implementation of selected responses.
◉ Risk Identification Process. Answer: Finding, Recognizing and
Recording Risks
◉ Support Function: Compliance. Answer: 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.
, ◉ To successfully integrate risk management into decision making,
risk management professionals will rely on strategies that draw on
personal and technical skills in. Answer: 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
◉ Strategy. Answer: A complete plan of action for whatever situations
might arise in achieving an organization's goals within the established
time.
◉ Risk tolerance. Answer: The amount of uncertainty an organization
is prepared to accept in total or more narrowly within a certain
business unit, a particular risk category or for a specific initiative.
◉ Strategic Risk Management. Answer: A business discipline that
drives deliberation and action regarding uncertainties and untapped
opportunities that affect an organization's strategy and strategic
execution.
◉ Value Chain. Answer: The series of functions, processes, materials
and activities (inputs) from concept to the eventual end user that
creates and builds value at every step in order to deliver a product or
service.
◉ To build organizational awareness, the risk management
professional needs to do the following:. Answer: Be a persuasive
communicator and facilitator; Have a clear communication plan;
