RIMS CRMP NEW EXAM STUDY GUIDE ALL QUESTIONS AND CORRECT
ANSWERS GRADE A+
Benchmarking - ANSWER 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 - ANSWER The system of rules, practices and processes by
which a company is directed and controlled.
Enterprise Risk Management - ANSWER 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.
Risk Appetite or Risk Tolerance - ANSWER The amount of uncertainty the organization
willing to accept in the aggregate, or in any specific business unit, category, or
endeavor.
Root Cause - ANSWER A factor that, if removed from a chain of events, causes a
problem not to occur or lessens the impact of a problem.
Root Cause Analysis - ANSWER A problem-solving methodology used to find the root
causes of problem
Strategic risk management (SRM) - ANSWER A business discipline that drives
deliberation and action regarding uncertainties and untapped opportunities that affect
an organization's strategy and strategy execution.
SWOT analysis - ANSWER SWOT is an acronym for Strengths, Weaknesses,
Opportunities, and Threats and is an analytical approach for environmental scanning
that combines internal and external context with obstacles and accelerators to success
in achieving objectives.
,SMART goals - ANSWER SMART is an acronym for Simple, Measurable, Achievable,
Realistic and Timely and refers to characteristics of high quality goals and objectives.
Value Chain - ANSWER A high-level model developed by Michael Porter used to describe
the process whereby businesses receive raw materials, add value to the raw materials
through various processes into a finished product and then sell that end product to
customers. Companies perform value-chain analysis by examining each production step
involved in making a product and identify methods of making the chain more efficient.
Overall, the goal is to provide maximum value at the lowest possible total cost and to
achieve a competitive advantage.
A business model is a set of assumptions about the - ANSWER way an organization
creates value
What two analytical tools are especially helpful to analytical tools to analyze the
business model? - ANSWER Value chain analysis and benchmarking
Risk Management professional conduct supply-chain analysis to identify - ANSWER
potential vulnerabilities to the organization
Which activity does the risk management professional perform immediately after
obtaining internal and external information about the organization? - ANSWER
Organize the information
The organisation's resources and internal support are__________________the risk
management strategy - ANSWER inputs in the development of
When establishing the success measures for the organization's risk strategy the risk
management professional will include which of the following steps? - ANSWER A
review of the goals and objectives of the risk strategy
Which of the following is considered to be a risk analysis technique? - ANSWER Monte
Carlo Simulation
,When an operational area develops a treatment for a critical risk, the risk management
professional MUST - ANSWER evaluate the impact upon other areas
A risk management professional advises management on the status of key risks by -
ANSWER providing insights into the changing characteristics of a risk
After validating the training curricula, a risk management professional - ANSWER
schedules and conducts training.
What is the role of risk management in the strategic planning process - ANSWER identify
threats and opportunities.
Gap Analysis - ANSWER Comparison of an existing process or procedure to recognize
standards in order to identify deficiencies or excesses in the existing process.
KPI - Key performance indicator - ANSWER Activity that signals the achievement of
organizational objectives, emphasize opportunities and strategic objectives.
KRI - Key risk indicator - ANSWER Designed to manage downside risk. A measurement
of how risk and volatility relate to achieving organizational objectives,
PESTLE Analysis - ANSWOR PESTLE is an acronym for Political, Economic, Social,
Technology, Legal and Environmental and identifies the categories used to scan internal
and external environments. Other variants of the acronym include "PEST" and
"PESTEL."
Risk - ANSWOR The consequence of uncertainty on objectives.
Risk Appetite - ANSWER The total amount at stake that an organization is willing to
take based on risk return trade-offs for one or more desired and expected outcomes
, Risk Attitude - ANSWER An organization's or individuals' view/perspective of the
perceived qualitative and quantitative value that may be gained in comparison to the
related potential loss or losses.
Risk Culture - ANSWER The set of beliefs, values, norms and habits of people and
groups in the conduct of an organization that defines the manner in which they identify,
perceive, discuss and act towards the risk(s) the organization faces and accepts.
Risk Champion - ANSWER Any individual within an organization who is a leader and
influences his or her peers on the value risk management brings to the organization.
Risk governance ANSWER The architecture within which risk management operates in
a company
When Risk owners are assisted in the development of risk treatment, it needs to be
A. Take a view of risk as equal
B. To take a business view of the risk
C. Be designed to generate positive ROI in the present year
D. Approval from the Board of Directors - ANSWER B. Risk in business perspective
The risk management practitioner should base information about the business model on
A. Industrial trends
B. Annual reports
C. Analyst reviews
D. Strategic goals - ANSWER D. Strategic goals
ANSWERS GRADE A+
Benchmarking - ANSWER 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 - ANSWER The system of rules, practices and processes by
which a company is directed and controlled.
Enterprise Risk Management - ANSWER 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.
Risk Appetite or Risk Tolerance - ANSWER The amount of uncertainty the organization
willing to accept in the aggregate, or in any specific business unit, category, or
endeavor.
Root Cause - ANSWER A factor that, if removed from a chain of events, causes a
problem not to occur or lessens the impact of a problem.
Root Cause Analysis - ANSWER A problem-solving methodology used to find the root
causes of problem
Strategic risk management (SRM) - ANSWER A business discipline that drives
deliberation and action regarding uncertainties and untapped opportunities that affect
an organization's strategy and strategy execution.
SWOT analysis - ANSWER SWOT is an acronym for Strengths, Weaknesses,
Opportunities, and Threats and is an analytical approach for environmental scanning
that combines internal and external context with obstacles and accelerators to success
in achieving objectives.
,SMART goals - ANSWER SMART is an acronym for Simple, Measurable, Achievable,
Realistic and Timely and refers to characteristics of high quality goals and objectives.
Value Chain - ANSWER A high-level model developed by Michael Porter used to describe
the process whereby businesses receive raw materials, add value to the raw materials
through various processes into a finished product and then sell that end product to
customers. Companies perform value-chain analysis by examining each production step
involved in making a product and identify methods of making the chain more efficient.
Overall, the goal is to provide maximum value at the lowest possible total cost and to
achieve a competitive advantage.
A business model is a set of assumptions about the - ANSWER way an organization
creates value
What two analytical tools are especially helpful to analytical tools to analyze the
business model? - ANSWER Value chain analysis and benchmarking
Risk Management professional conduct supply-chain analysis to identify - ANSWER
potential vulnerabilities to the organization
Which activity does the risk management professional perform immediately after
obtaining internal and external information about the organization? - ANSWER
Organize the information
The organisation's resources and internal support are__________________the risk
management strategy - ANSWER inputs in the development of
When establishing the success measures for the organization's risk strategy the risk
management professional will include which of the following steps? - ANSWER A
review of the goals and objectives of the risk strategy
Which of the following is considered to be a risk analysis technique? - ANSWER Monte
Carlo Simulation
,When an operational area develops a treatment for a critical risk, the risk management
professional MUST - ANSWER evaluate the impact upon other areas
A risk management professional advises management on the status of key risks by -
ANSWER providing insights into the changing characteristics of a risk
After validating the training curricula, a risk management professional - ANSWER
schedules and conducts training.
What is the role of risk management in the strategic planning process - ANSWER identify
threats and opportunities.
Gap Analysis - ANSWER Comparison of an existing process or procedure to recognize
standards in order to identify deficiencies or excesses in the existing process.
KPI - Key performance indicator - ANSWER Activity that signals the achievement of
organizational objectives, emphasize opportunities and strategic objectives.
KRI - Key risk indicator - ANSWER Designed to manage downside risk. A measurement
of how risk and volatility relate to achieving organizational objectives,
PESTLE Analysis - ANSWOR PESTLE is an acronym for Political, Economic, Social,
Technology, Legal and Environmental and identifies the categories used to scan internal
and external environments. Other variants of the acronym include "PEST" and
"PESTEL."
Risk - ANSWOR The consequence of uncertainty on objectives.
Risk Appetite - ANSWER The total amount at stake that an organization is willing to
take based on risk return trade-offs for one or more desired and expected outcomes
, Risk Attitude - ANSWER An organization's or individuals' view/perspective of the
perceived qualitative and quantitative value that may be gained in comparison to the
related potential loss or losses.
Risk Culture - ANSWER The set of beliefs, values, norms and habits of people and
groups in the conduct of an organization that defines the manner in which they identify,
perceive, discuss and act towards the risk(s) the organization faces and accepts.
Risk Champion - ANSWER Any individual within an organization who is a leader and
influences his or her peers on the value risk management brings to the organization.
Risk governance ANSWER The architecture within which risk management operates in
a company
When Risk owners are assisted in the development of risk treatment, it needs to be
A. Take a view of risk as equal
B. To take a business view of the risk
C. Be designed to generate positive ROI in the present year
D. Approval from the Board of Directors - ANSWER B. Risk in business perspective
The risk management practitioner should base information about the business model on
A. Industrial trends
B. Annual reports
C. Analyst reviews
D. Strategic goals - ANSWER D. Strategic goals
