RIMS CRMP EXAM STUDY GUIDE COMMON TERMS
GRADED A+ 100% VERIFIED.
Benchmarking ANS >>> 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 ANS >>> The system of rules, practices and
processes by which a company is directed and controlled
Enterprise risk management ANS >>> 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.
Strategy: Consider all risks and exploit risks as part of strategy
,Measurement: Include Upside of Risk (Bugala and Kugler)
Look at building, expanding, exploiting to add value
Push and Pull risk performance data
This approach is Coordinated & Strategic
Gap analysis ANS >>> Comparison of an existing process or procedure to
recognized standards in order to identify deficiencies or excesses in the
existing process.
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.
Key performance indicator (KPI) ANS >>> An activity that signals the
achievement of organizational objectives
Key risk indicator (KRI) ANS >>> A measurement of how risk and volatility
relate to achieving organizational objectives
Designed to manage the downside of risk
Leading indicators of risk to business performance; giving early warning
of potential risk
, early signal of changes in risk exposures in various areas of the
enterprise
Risk Metrics ANS >>> Integrated into the performance objectives of the
organization for monitoring risks
Examples: Kepis and Kris
Indemnification ANS >>> Contractual obligation placed on the
indemnifier to return the indemnified to essentially the same financial
condition that existed prior to the loss or claim, to stand in as the
source for financing the legal liability
Contractual Risk Transfer ANS >>> A legally binding agreement between
two parties whereby one agrees to indemnify and hold another party
harmless for specified actions, inactions, injuries or damages
Hold Harmless ANS >>> wording that requires one party to shield the
other party from the effects of the legal liability assignable to transfer or
obligor
Risk Transfer/Sharing ANS >>> Action taken when 1) costs of retaining
risks exceeds the organization's risk tolerance; 2) risks (or some portion)
GRADED A+ 100% VERIFIED.
Benchmarking ANS >>> 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 ANS >>> The system of rules, practices and
processes by which a company is directed and controlled
Enterprise risk management ANS >>> 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.
Strategy: Consider all risks and exploit risks as part of strategy
,Measurement: Include Upside of Risk (Bugala and Kugler)
Look at building, expanding, exploiting to add value
Push and Pull risk performance data
This approach is Coordinated & Strategic
Gap analysis ANS >>> Comparison of an existing process or procedure to
recognized standards in order to identify deficiencies or excesses in the
existing process.
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.
Key performance indicator (KPI) ANS >>> An activity that signals the
achievement of organizational objectives
Key risk indicator (KRI) ANS >>> A measurement of how risk and volatility
relate to achieving organizational objectives
Designed to manage the downside of risk
Leading indicators of risk to business performance; giving early warning
of potential risk
, early signal of changes in risk exposures in various areas of the
enterprise
Risk Metrics ANS >>> Integrated into the performance objectives of the
organization for monitoring risks
Examples: Kepis and Kris
Indemnification ANS >>> Contractual obligation placed on the
indemnifier to return the indemnified to essentially the same financial
condition that existed prior to the loss or claim, to stand in as the
source for financing the legal liability
Contractual Risk Transfer ANS >>> A legally binding agreement between
two parties whereby one agrees to indemnify and hold another party
harmless for specified actions, inactions, injuries or damages
Hold Harmless ANS >>> wording that requires one party to shield the
other party from the effects of the legal liability assignable to transfer or
obligor
Risk Transfer/Sharing ANS >>> Action taken when 1) costs of retaining
risks exceeds the organization's risk tolerance; 2) risks (or some portion)
