CRM Principles of Risk Management Exam, RIMS CRMP Exam
Study Guide Common Terms, RIMS-CRMP Vocab/Definitions,
RIMS CRMP-Implementing the Risk Process, RIMS-CRMP
EXAM STUDY GUIDE, RIMS - CRMP Complete Study Guide 2025
UPDATE/PRACTICE QUESTIONS AND CORRECT VERIFIED
ANSWERS (complete solutions) ASSURED SUCCESS/GRADED
A+!!!
Describe characteristics of Enterprise Risk Management (ERM) (5) - CORRECT
ANSWER-1) risk has potential upside and downside
2) tied to strategic objectives
3) cross functional treatment of risk
4) uses subject matter experts and risk committees to identify risk and spreads
accountability of risk
5) proactive/opportunistic
List the ERM broad categories of risk and give examples of each (4). - CORRECT
ANSWER-1.Operational Risk: related to management activities (speculative)
2) Financial Risk: related to financial activities (speculative)
,3) Hazard Risk: covered by insurance (pure)
4) Strategic Risk: related to an organization's strategic plan (speculative)
Define Organizational Risk Culture (ORC). - CORRECT ANSWER-a set of
understandings, knowledge, beliefs, values and habits toward risk, that
characterize a human group (organization) in search of a common purpose
Explain the four characteristics of an effective ORC(4). - CORRECT ANSWER-1.
Tone at the top - leadership clarity of direction and a positive corporate attitude
toward risk
2. Corporate Governance - clear responsibility for risk management; transparency
and timeliness of risk information
3. Decision Making - well informed decisions regarding risk; performance
evaluations encourage good risk management decisions
4. Authority and Accountability - embedding risk management abilities and
responsibilities within the organization.
List the benefits of implementing an ERM program(7). - CORRECT ANSWER-1.
Identifies threats and opportunities related to an organization's strategic plan,
objectives and total cost of risk
2. Closely links an organization's business, operational, and strategic objectives to
the practice of managing risk
,3. Uses performance metrics to drive improvement in decision making
4. Provides a common language for communication about risks and opportunities
5. Enhances management of activities and their associated risks
6. Safeguards the organization's branding and reputation
7. Allows organizations to capitalize on opportunities to increase
shareholder/stakeholder value
Explain the impacts of an effective Risk Management program on an organization
(6) - CORRECT ANSWER-1. protects organization's reputation/brand
2. Increases profitability
3. Raises awareness of risk management
4. supports managerial objective
5. Improves morale and productivity
6. Improves quality, process and technology
Define Traditional Risk Management (TRM). - CORRECT ANSWER-a functional,
siloed, view of risk affecting one or more areas of the organization (focuses on
pure risk)
, Define Enterprise Risk Management (ERM). - CORRECT ANSWER-across
functional view of risks affecting all areas of the entire organization (embraces
speculative risk)
Describe characteristics of Traditional Risk Management (TRM) (5) - CORRECT
ANSWER-1. manages downside risks
2. oriented to cause-of-loss, tied to minimizing risk impact
3. functional siloed treatement of risk
4. risk ID and ownership with individual employee or department
5. Reactive
Identify the requirements of ERM implementation (5). - CORRECT ANSWER-1.
Support Of The Senior Management Team
2. An Implementation Leader And Dedicated Cross-Functional Committees
3. An ERM Risk Assessment
4. A Common Language Regarding Risk
5. An Established Framework
Study Guide Common Terms, RIMS-CRMP Vocab/Definitions,
RIMS CRMP-Implementing the Risk Process, RIMS-CRMP
EXAM STUDY GUIDE, RIMS - CRMP Complete Study Guide 2025
UPDATE/PRACTICE QUESTIONS AND CORRECT VERIFIED
ANSWERS (complete solutions) ASSURED SUCCESS/GRADED
A+!!!
Describe characteristics of Enterprise Risk Management (ERM) (5) - CORRECT
ANSWER-1) risk has potential upside and downside
2) tied to strategic objectives
3) cross functional treatment of risk
4) uses subject matter experts and risk committees to identify risk and spreads
accountability of risk
5) proactive/opportunistic
List the ERM broad categories of risk and give examples of each (4). - CORRECT
ANSWER-1.Operational Risk: related to management activities (speculative)
2) Financial Risk: related to financial activities (speculative)
,3) Hazard Risk: covered by insurance (pure)
4) Strategic Risk: related to an organization's strategic plan (speculative)
Define Organizational Risk Culture (ORC). - CORRECT ANSWER-a set of
understandings, knowledge, beliefs, values and habits toward risk, that
characterize a human group (organization) in search of a common purpose
Explain the four characteristics of an effective ORC(4). - CORRECT ANSWER-1.
Tone at the top - leadership clarity of direction and a positive corporate attitude
toward risk
2. Corporate Governance - clear responsibility for risk management; transparency
and timeliness of risk information
3. Decision Making - well informed decisions regarding risk; performance
evaluations encourage good risk management decisions
4. Authority and Accountability - embedding risk management abilities and
responsibilities within the organization.
List the benefits of implementing an ERM program(7). - CORRECT ANSWER-1.
Identifies threats and opportunities related to an organization's strategic plan,
objectives and total cost of risk
2. Closely links an organization's business, operational, and strategic objectives to
the practice of managing risk
,3. Uses performance metrics to drive improvement in decision making
4. Provides a common language for communication about risks and opportunities
5. Enhances management of activities and their associated risks
6. Safeguards the organization's branding and reputation
7. Allows organizations to capitalize on opportunities to increase
shareholder/stakeholder value
Explain the impacts of an effective Risk Management program on an organization
(6) - CORRECT ANSWER-1. protects organization's reputation/brand
2. Increases profitability
3. Raises awareness of risk management
4. supports managerial objective
5. Improves morale and productivity
6. Improves quality, process and technology
Define Traditional Risk Management (TRM). - CORRECT ANSWER-a functional,
siloed, view of risk affecting one or more areas of the organization (focuses on
pure risk)
, Define Enterprise Risk Management (ERM). - CORRECT ANSWER-across
functional view of risks affecting all areas of the entire organization (embraces
speculative risk)
Describe characteristics of Traditional Risk Management (TRM) (5) - CORRECT
ANSWER-1. manages downside risks
2. oriented to cause-of-loss, tied to minimizing risk impact
3. functional siloed treatement of risk
4. risk ID and ownership with individual employee or department
5. Reactive
Identify the requirements of ERM implementation (5). - CORRECT ANSWER-1.
Support Of The Senior Management Team
2. An Implementation Leader And Dedicated Cross-Functional Committees
3. An ERM Risk Assessment
4. A Common Language Regarding Risk
5. An Established Framework
