1|Page
RIMS CMRP EXAM AND STUDYGUIDE NEWEST
2025 ACTUAL EXAM COMPLETE 200
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW!!
Explain the impacts of an effective Risk Management
program on an organization (6) - .....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). -
.....ANSWER ...✔✔ a functional, siloed, view of risk
affecting one or more areas of the organization (focuses
on pure risk)
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Define Enterprise Risk Management (ERM). - .....ANSWER
...✔✔ across functional view of risks affecting all
areas of the entire organization (embraces speculative
risk)
Describe characteristics of Traditional Risk Management
(TRM) (5) - .....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
Describe characteristics of Enterprise Risk Management
(ERM) (5) - .....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
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List the ERM broad categories of risk and give examples
of each (4). - .....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). - .....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). -
.....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
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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). -
.....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
RIMS CMRP EXAM AND STUDYGUIDE NEWEST
2025 ACTUAL EXAM COMPLETE 200
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW!!
Explain the impacts of an effective Risk Management
program on an organization (6) - .....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). -
.....ANSWER ...✔✔ a functional, siloed, view of risk
affecting one or more areas of the organization (focuses
on pure risk)
,2|Page
Define Enterprise Risk Management (ERM). - .....ANSWER
...✔✔ across functional view of risks affecting all
areas of the entire organization (embraces speculative
risk)
Describe characteristics of Traditional Risk Management
(TRM) (5) - .....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
Describe characteristics of Enterprise Risk Management
(ERM) (5) - .....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
,3|Page
List the ERM broad categories of risk and give examples
of each (4). - .....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). - .....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). -
.....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
, 4|Page
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). -
.....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
