RIMS - CRMP Complete Study Guide; 1 Questions with 100% Complete Solutions, A+

Value Chain - cORRECT sOLUTIONS 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: - cORRECT sOLUTIONS Be a persuasive communicator and facilitator; Have a clear communication plan; Engage interested parties, including primary and secondary audiences; Demonstrate that risk management creates the most value ; Develop feedback loops for continuous learning Risk Analysis - cORRECT sOLUTIONS The process of characterizing and understanding the nature of risk and of considering the level of risk in the context of the organization's willingness to accept risk. Support Function: Safety - cORRECT sOLUTIONS Risk identification, assessment and treatment of risks focused on preserving the physical well-being of employees and third parties. Likelihood, Consequences, other criteria such as timing, duration, vulnerability and interdependencies - cORRECT sOLUTIONS Risk is typically analyzed on the basis of Support Function: Information Security - cORRECT sOLUTIONS Risk Identification, assessment and treatment of risk arising our of or affecting information and technology infrastructure. To build organizational awareness, risk management creates the most value when - cORRECT sOLUTIONS Risk management Aligns with strategic goals; Takes corporate culture into account; Involves key enterprise functions Financial Statements - cORRECT sOLUTIONS Internal source of information that includes financial analytics or projections strategic planning team - cORRECT sOLUTIONS The risk manager should be a part of the _______________________ to provide the structure discipline for consideration of risks in a strategic portfolio. Internal Audit Reports - cORRECT sOLUTIONS Internal source of information that focuses on business practices important to the goals and reflection of regulatory environment of the organization risk management - cORRECT sOLUTIONS __________________ should be an agenda item at every strategy session. Support Function: Facilities - cORRECT sOLUTIONS Risk identification, assessment and treatment of the organization's properties, equipment and physical infrastructure systems. Simple and frequent - cORRECT sOLUTIONS A type of decision that are automatic, taken in the moment. These decisions generally rely on the knowledge and capability of the decision maker using the back-of-the-napkin technique. Bow tie analysis - cORRECT sOLUTIONS hazard analysis technique (cause and consequence) Business impact analysis - cORRECT sOLUTIONS consider business impacts at a location or from a specific process Support Functions: Quality - cORRECT sOLUTIONS Risk identification, assessment and treatment of risks related to products and services. Significant importance or complex - cORRECT sOLUTIONS A type of decision that require more deliberate effort. These decisions generally have some period of planning and a longer decision timeline. Organizational Structure - cORRECT sOLUTIONS Internal source of information that reports from different departments (HR, Legal, risk, operations, HS, environment, etc.) Review the existing strategic plan - cORRECT sOLUTIONS The first step for the risk manager is to __________________________ to identify and understand the organization's goals. key performance indicators - cORRECT sOLUTIONS Each high-level strategy objective should be broken down into more tactical, operational _____________________ for analysis. External Organization Information - cORRECT sOLUTIONS External source of information that includes external audit reports, competitive analysis, rating agency, consumer reports, legal matters, media coverage Strategic importance and complex - cORRECT sOLUTIONS A type of decision that call for formal planning process over a longer timeline in which multiple risk management techniques can be applied. Decision quality elements should be embedded in the process. Due to the importance of the decision, biases should be formally considered by the entire planning team. Support Function: Project Management - cORRECT sOLUTIONS Assess and identify project risks, mitigate threats and capitalize on opportunities that my affect the success of a specific project. Gap analysis - cORRECT sOLUTIONS determine steps to improve the organization's capacity to move from a current state to a desired, future state. (current available factors, success factors needed to achieve future desired objectives, highlighting the gaps) How to obtain the real story aside from reading information? - cORRECT sOLUTIONS Talk to those inside the organization; Talk with external stakeholders ; Do site visits assumptions - cORRECT sOLUTIONS The risk manager can then identify ________________ made by management when developing these goals. Risks - cORRECT sOLUTIONS 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 - cORRECT sOLUTIONS 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.