RIMS-CRMP Risk Management Professional Exam Study Quizzes, Answers, Explanations, and Practice Mock Exams

1 ©Pallett Corner Consulting, 2023 RIMS -CRMP Certified Risk Management Professional Exam Preparation Risk Management Professional Exam Study Quizzes, Answers, Explanations, and Practice Mock Exam This package contains 12 practice quizzes, and two practice exams to be used in preparation for the RIMS -CRMP Certified Risk Management Professional Exam. The quizzes range from 18 to 86 questions. The two practice exams are both 120 questions. Answers are provided, and for the vast majority of answers, so are explanations. This is curated content, generated by A.I., but reviewed and edited by myself. In total there are 584 questions across 146 pages (or 360 pages of content when the answers and explanation s are included). Some questions are repeated across some of the quizzes, but the majority are unique. This forms a program of study that is intended to be completed over 1 month. The Overview below (after t he contents) details my approach to studying for this exam and how this material was developed and intended to be used. I encourage you to review that before starti ng on these quizzes and exams. Michael Pallett, RIMS -CRMP , BEng April, 2023 2 ©Pallett Corner Consulting, 2023 Contents Sample Example Quiz #1 of 12 ................................ ................................ ................................ .................. 8 18 Questions, 5 pages. Answers below, 12 pages total ................................ ................................ ........ 8 Quiz 1 Answers ................................ ................................ ................................ ................................ ........ 14 Sample Example Quiz #2 of 12 ................................ ................................ ................................ ................ 21 34 Questions, 9 pages. Answers below, 20 pages total ................................ ................................ ...... 21 Quiz 2 Answers ................................ ................................ ................................ ................................ ........ 31 Sample Example Quiz #3 of 12 ................................ ................................ ................................ ................ 42 42 Questions, 11 pages. Answers with explanations below, 30 pages total ................................ ...... 42 Quiz 3 Answers & Explanations ................................ ................................ ................................ ............... 54 Sample Example Quiz #4 of 12 ................................ ................................ ................................ ................ 73 44 Questions, 12 pages. Answers with explanations below, 31 pages total ................................ ...... 73 Quiz 4 Answers & Explanations ................................ ................................ ................................ ............... 86 Sample Example Quiz #5 of 12 ................................ ................................ ................................ .............. 105 42 Questions, 11 pages. Answers with explanations below, 29 pages total ................................ ..... 105 Quiz 5 Answers & Explanations ................................ ................................ ................................ ............. 117 Sample Example Quiz #6 of 12 ................................ ................................ ................................ .............. 135 43 Questions, 11 pages. Answers with explanations below, 30 pages total ................................ .... 135 Quiz 6 Answers & Explanations ................................ ................................ ................................ ............. 147 Sample Example Quiz #7 of 12 ................................ ................................ ................................ .............. 166 41 Questions, 10 pages. Answers with explanations below, 27 pages total ................................ .... 166 Quiz 7 Answers & Explanations ................................ ................................ ................................ ............. 177 3 ©Pallett Corner Consulting, 2023 Sample Example Quiz #8 of 12 ................................ ................................ ................................ .............. 194 48 Questions, 12 pages. Answers with explanations below, 33 pages total ................................ .... 194 Quiz 8 Answers & Explanations ................................ ................................ ................................ ............. 207 Sample Example Quiz #9 of 12 ................................ ................................ ................................ .............. 228 78 Questions, 21 pages. Answers with explanations below, 52 pages total ................................ .... 228 Quiz 9 Answers & Explanations ................................ ................................ ................................ ............. 250 Sample Example Quiz #10 of 12 ................................ ................................ ................................ ............ 282 86 Questions, 20 pages. Answers with explanations below, 48 pages total ................................ .... 282 Quiz 10 Answers & Explanations ................................ ................................ ................................ ........... 303 Sample Example Quiz #11 of 12 ................................ ................................ ................................ ............ 331 30 Questions, 7 pages. Answers with explanations below, 19 pages total ................................ ...... 331 Quiz 11 Answers & Explanations ................................ ................................ ................................ ........... 339 Sample Example Quiz #12 of 12 ................................ ................................ ................................ ............ 351 78 Questions, 20 pages. Answers with explanations below, 53 pages total ................................ .... 351 Quiz 12 Answers & Explanations ................................ ................................ ................................ ........... 372 Bonus Quiz #13 ................................ ................................ ................................ ................................ ..... 405 65 Questions, 17 pages. Answers with explanations below, 42 pages total ................................ .... 405 Bonus Quiz 13 Answers & Explanations ................................ ................................ ................................ 423 A.I. Generated Mock Exam 1 ................................ ................................ ................................ ..................... 448 120 Questions, 31 pages. Answers with explanations below, 78 pages total. ................................ ..... 448 Mock Exam 1 Answers & Explanations ................................ ................................ ................................ . 479 A.I. Generated Mock Exam 2 ................................ ................................ ................................ ..................... 525 120 Questions, 30 pages. Answers with explanations below, 73 pages total. ................................ ..... 525 Mock Exam 2 Answers & Explanations ................................ ................................ ................................ . 556 4 ©Pallett Corner Consulting, 2023 Risk Management Professional Exam Study Program Overview Exam Preparation Multiple Choice Questions, Answers, & Explanations A.I. Generated Curated and reviewed by Michael Pallett, BEng , RIMS -CRMP April 18, 2023 I had scheduled the RIMS -CRMP exam for April 4th, 2023. Although I was reviewing the RIMS -CRMP Examination Study Guide , and other material (i.e., the third -party documents referenced in the Study Guide), and knew about the sample questions in the guide, I was looking for more practice with multiple choice questions consistent with the upcoming exam. Searching online did not reveal a significant store of resources I could draw upon . With the recent developments in A.I. Chat Boxes, I decide d to work on developing prompts to generate appropriate quizzes. After working to refine my prompts, I was ultimat ely so impressed with the results that I made this a core part of my study routine. I took the exam on April 4th and passed (>70%) on my first attempt . Later in the week, I received my RIMS -CRMP designation. Even though the quiz questions were generated, I put a lot of work in refining and curating the quizzes . For example, there was a limited number of questions, answers, and explanations that could be generated at one time, so often questions within one quiz were duplicated. There were often different styles of formatting, and some terrible formatting. Sometimes the questions were missing some options or answers. All of this needed to be cleaned up (although I tried to minimize the changes I made). Also, I did not always agree with th e A.I.’s answers, and/or explanations. However, I did not delete these questions from the quizzes. I got enormous insights by researching and creating arguments against the A.I.’s results. I added my own notes to the A.I.’s explanations and included the m with the answers. The result was a month -long study program. There are 12 quizzes, ranging from 18 to 86 questions. There is also a bonus quiz containing 65 of the most difficult questions. At the end, there are two 120 question practice exams that are drawn from the qui zzes. In total the 12-quiz package contains 584 question s, across 146 pages (or 360 pages when the answers and explanations are included). Some of the questions were repeated across quizzes. I did not try and weed out these repeats, because I found them valuable for improving my retention. This study program is designed to augment any other course or reading material that applicants are already studying. I do not think that this resource alone would result in someone passing this exam. A month before yo ur exam, start taking the quizzes, and keep track of your results, and read the explanations. Let these questions guide some of your study habits – they will likely reveal areas where 5 ©Pallett Corner Consulting, 2023 you need to learn more. Once that is done, do it again and compare how you did with the first time through. Then tackle the two practice exams. This will take 2 6 days. In general, I was running at about 30 seconds per question on average , with about the same time (on average) to review the answers. This include d time to look closely at the explanations for the questions I got wrong. I also marked the questions I found challenging, and reviewed those explanations carefully, even if I got the correct answer . So, on average I was spending 20 minutes to 1½ hour s writing each quiz and reviewing the answers . Obviously, that will vary depending on your level of preparation. The second time through was quicker . Rarely did I remember a specific answer to a question from the first time through. The first time through I scored 79% on average . Not bad, but since a passing grade in the exam was over 70%, the result did not inspire as much confidence as I would have liked. The second tim e through my average score was 91%. That was consistent with my preparation goal. Then on the example exam #1 (120 questions) I got 84%, which was lower than I had expected. But I redeemed myself on sample exam #2 where I got 97%. I was ready. I can st ate that this definitely helped me pass the exam. The continual practice in reading and answering these questions led to a well prepared mindset when I sat for the exam. I do not have the actual grade (they don’t disclose that), but I feel I did very we ll, I had lots of time to complete, review the questions I was not sure about, change some answers, and still finish about 10 minutes early. I will not comment at all about the actual questions on the exam. All these A.I. questions were generated before I took the exam, as were any notes I added. There is no after exam hindsight represented here. However, I will contrast these A.I. questions with the RIMS -CRMP Exam Study Guide , so you know what to expect: RIMS -CRMP Examination Study Guide Comments on A.I. Generated Quiz Questions Varying complexity The quiz questions were intended to be difficult and challenging. But some are certainly harder than others. In comparison to the questions asked in the study guide, I would characterize the questions to be similar in difficulty. For myself, I scored comparably in the study guide question compared to the A.I. questions . The first quiz presented is both the shortest and easiest. I would expect that people who are preparing adequately would do well on the first quiz. If not, you may want to reassess your level of preparedness before continuing with the quizzes. Choose the best answer Upon reflection of the questions I got wron g with the Study Guide, I agreed with the correct answers provided by RIMS. In comparison, I felt that there were many more cases in the quiz question where either the questions or answers were more subjective. I did not always agree 6 ©Pallett Corner Consulting, 2023 with the A.I. genera ted explanations, and not all explanations were of the same quality. Some explanations were very good. Some were less straight forward. Some were contradictory. Some were not helpful. Some were missing. Although in most cases questions with missing explanations tended to be more straight forward. In multiple cases, I disagreed with the A.I. best answer, and includ ed notes on those questions to explain why I disagreed. Exam blueprint /domains In the later quizzes (the longer ones) there was an effort at balancing the questions across the domains according to the RIMS Exam blueprint. However, as questions were curated , an exact balance of percentage questions across the 5 domains was not maintained. No trick questions /read questions carefully I would say for the most part the A.I. generated questions are not trick questions, but there are some that after getting wrong, I found I did not read the questions carefully enough which led me to the wrong answer. There may be a few questions here some might characterize as trick questions. Recognized, referenced , and expert reviewed answers This is not the case with the A.I . generated answers. There is room to doubt and argue that the answers provided are always correct. In multiple cases on most quizzes, I disagreed with some of the answers, and included my notes making an argument for why. Yet I do not have the background like RIMS experienced experts who were asked to review and agree on the exam answers. So , my opinion, is just that, and I expect some would disagree with my notes. Questions perform as intended The questions performed well as a group to further my study of the material. They definitely showed me my weakness in preparation and allowed me to a ddress my knowledge gaps. However, for many individual questions , I felt they did not always perform well . But there was an upside to this from the studying process perspective. As I wrestled with poorly written questions, I found my understanding grew deeper , such that I could recognize and articulate the flaws in the questions. In comparison, I found no flaws in the RIMS Study Guide questions. 7 ©Pallett Corner Consulting, 2023 My Personal Results : Overall Average of 1st Pass: 79% Overall Average of 2nd Pass: 91% Quiz No. No. of Questions Number of Pages (for the Questions) Total Pages including restating the questions plus answers and explanations1 1 18 5 12 2 34 9 20 3 42 11 30 4 44 12 31 5 42 11 29 6 43 11 30 7 41 10 27 8 48 12 33 9 78 20 52 10 86 20 48 11 30 7 19 12 78 20 53 See below for a look at the first quiz for those that are interested. Note there are no explanations for the first and second qui z. 1 No explanations provided for the first and second quiz. 0.010.020.030.040.050.060.070.080.090.0100.0
1 2 3 4 5 6 7 8 9 10 11 12Sample Quiz Scores (1st & 2nd Pass Compared)
Score 1st Pass Score 2nd Pass 8 ©Pallett Corner Consulting, 2023 Risk Management Professional Exam Prep A.I. Generated Practice Questions Sample Example Quiz #1 of 12 18 Questions, 5 pages. Answers below, 12 pages total The RIMS -CRMP exam is a certification exam for risk management professionals that is accredited by the American National Standards Institute (ANSI) and conforms to international standards. The exam tests the candidates' knowledge and skills in five domains: analyzing business mod els, designing organizational risk strategies, implementing risk processes, developing organizational risk competency, and supporting decision making. The exam consists of 120 multiple choice questions that must be completed within two hours. Candidates mu st score at least 71% to pass the exam. 1. Which of the following is an example of a risk appetite statement? A) We will accept risks that are aligned with our strategic objectives and within our risk capacity. B) We will monitor and report on our key risk indicators on a quarterly basis. C) We will implement risk mitigation strategies for all risks that exceed our risk tolerance levels. D) We will allocate resources to manage risks based on their priority and impact. 2. Which of the follo wing is a benefit of using a risk register? A) It provides a comprehensive list of all the risks that have been identified and assessed by the organization. B) It facilitates communication and collaboration among different stakeholders involved in risk management. C) It enables tracking and reporting on the status and progress of risk responses and actions. D) All of the above. 3. Which of the following is a key element of an effective risk culture? A) Risk awareness and education at al l levels of the organization. B) Clear roles and responsibilities for risk management activities. C) Incentives and rewards for positive risk behaviors and outcomes. D) All of the above. 9 ©Pallett Corner Consulting, 2023 4. Which of the following is a type of residual risk? A) The risk that remains after implementing a risk response strategy. B) The risk that arises from unforeseen or unexpected events or circumstances. C) The risk that results from inadequate or failed internal processes or controls. D) The risk that stems from external factors beyond the control of the organization. 5. Which of the following is an example of a quantitative risk analysis technique? A) SWOT analysis B) Scenario analysis C) Monte Carlo simulation D) Risk matrix 6. Which of the following is an example of a strategic risk? A) A competitor launches a new product that threatens your market share B) A supplier fails to deliver a critical component on time C) A customer files a lawsuit against your company for breach of contract D) A natural disaster damages your production facility 7. Which of the following is a key element of an effective risk culture? A) Risk awareness and ownership at all levels of the organization B) Risk avoidance and minimization as the primary goal of decision making C) Risk delegation and outsourcing to external experts and consultants D) Risk compliance and adherence to regulatory requirements only 8. Which of t he following is a benefit of using a risk register? A) It provides a comprehensive and consistent view of all risks across the organization B) It enables a quantitative analysis and valuation of all risks using mathematical models C) It facilit ates a collaborative and interactive dialogue among stakeholders on risk issues D) It supports a proactive and continuous improvement of risk management practices 10 ©Pallett Corner Consulting, 2023 9. Which of the following is an example of a cognitive bias that can affect decision maki ng under uncertainty? A) Anchoring: relying too heavily on an initial piece of information or reference point B) Framing: presenting or interpreting information differently based on context or perspective C) Confirmation: seeking or interpreti ng information that confirms one's preexisting beliefs or hypotheses D) All of the above 10. What is the main purpose of risk appetite statements? a) To communicate the level and types of risk that an organization is willing to accept or avoid b) To quantify the potential impact and likelihood of various risk scenarios c) To prioritize the allocation of resources and actions for risk mitigation d) To evaluate the effectiveness and efficiency of risk management activities e) To identify the sources and causes of uncertainty and volatility 11. Which of the following is a key step in implementing the risk process? a) Establishing risk governance and culture b) Assessing risks and opportunities c) Developing risk scenarios and models d) Monitoring and reporting on risks e) All of the above 12. Which of the following is a benefit of developing organizational risk competency? a) It enhances stakeholder confidence and trust in the organization's ability to manage risks b) It improves decision making and p erformance by incorporating risk information and analysis c) It fosters a culture of learning and innovation by encouraging risk awareness and feedback d) It reduces costs and inefficiencies by streamlining risk management processes and systems e) All of the above