RIMS - CRMP Complete Study Guide Latest Update 100% Complete

RIMS - CRMP Complete Study Guide Latest Update 100% Complete 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 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. Support Function: Business continuity and crisis management Risk identification, assessment and creation of emergency response and recovery plans related to threats or hazards that might lead to operational disruptions 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. 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 Risk management strategies' general focus Meeting or exceeding an organization's objectives Adhering to control-based objectives, rules and/or controls Complying with regulatory requirements 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. 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 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. Risk appetite 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 Risk management professional's role in Implementing Risk Strategies Support Function: Legal 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? 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 Determines that actions the organization will take at any stage of the planning period as circumstances change. Risk owner The individual who is ultimately accountable for ensuring that risk is managed appropriately, including the implementation of selected responses. Risk Identification Process Finding, Recognizing and Recording Risks Support Function: Compliance Risk identification, assessment