RIMS-CRMP EXAM STUDY GUIDE QUESTIONS WITH
CORRECT ANSWERS
Benchmarking |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-The |system |of |rules, |practices |and |processes |
by |which |a |company |is |directed |and |controlled.
Enterprise |Risk |Management |- |CORRECT |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.
Gap |Analysis |- |CORRECT |ANSWER✔✔-Comparison |of |an |existing |process |or |procedure |to |
recognize |standards |in |order |to |identify |deficiencies |or |excesses |in |the |existing |process.
Key |performance |indicator |(KPI) |- |CORRECT |ANSWER✔✔-As |activity |that |signals |the |
achievement |of |organizational |objectives, |emphasize |opportunities |and |strategic |objectives.
Key |risk |indicator |(KRI) |- |CORRECT |ANSWER✔✔-designed |to |manage |downside |risk. |A |
measurement |of |how |risk |and |volatility |relate |to |achieving |organizational |objectives,
PESTLE |Analysis |- |CORRECT |ANSWER✔✔-PESTLE |is |an |acronym |for |Political, |Economic, |Social, |
Technology, |Legal |and |Environmental |and |identifies |the |categories |utilized |to |analyze |internal |
and |external |environments. |Other |forms |of |the |acronym |include |"PEST" |and |"PESTEL."
Risk |- |CORRECT |ANSWER✔✔-The |effect |of |uncertainty |on |objectives.
, Risk |Appetite |- |CORRECT |ANSWER✔✔-The |total |exposed |amount |that |an |organization |wishes |
to |undertake |on |the |basis |of |risk |return |trade-offs |for |one |or |more |desired |and |expected |
outcomes
Risk |Attitude |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-The |beliefs, |values, |norms |and |traditions |of |behavior |of |
individuals |and |groups |within |an |organization |that |determine |the |way |in |which |they |identify, |
understand, |discuss |and |act |on |the |risk(s) |the |organization |confronts |and |takes.
Risk |Champion |- |CORRECT |ANSWER✔✔-Any |person |in |an |organization |who |is |a |leader |and |
influences |peers |regarding |the |value |that |risk |management |adds |to |the |organization.
Risk |governance |- |CORRECT |ANSWER✔✔-The |architecture |within |which |risk |management |
operates |in |a |company
Risk |Management |- |CORRECT |ANSWER✔✔-The |process |of |making |and |implementing |decisions
|that |will |minimize |the |adverse |effects |of |accidental |losses |on |an |organization.
Risk |Owner |- |CORRECT |ANSWER✔✔-An |individual |accountable |for |the |identification, |
assessment, |treatment |and |monitoring |of |risks |in |a |specific |environment
Risk |Portfolio |- |CORRECT |ANSWER✔✔-A |complete |collection |and |range |of |uncertainties |that |
affect |an |organization's |future.
CORRECT ANSWERS
Benchmarking |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-The |system |of |rules, |practices |and |processes |
by |which |a |company |is |directed |and |controlled.
Enterprise |Risk |Management |- |CORRECT |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.
Gap |Analysis |- |CORRECT |ANSWER✔✔-Comparison |of |an |existing |process |or |procedure |to |
recognize |standards |in |order |to |identify |deficiencies |or |excesses |in |the |existing |process.
Key |performance |indicator |(KPI) |- |CORRECT |ANSWER✔✔-As |activity |that |signals |the |
achievement |of |organizational |objectives, |emphasize |opportunities |and |strategic |objectives.
Key |risk |indicator |(KRI) |- |CORRECT |ANSWER✔✔-designed |to |manage |downside |risk. |A |
measurement |of |how |risk |and |volatility |relate |to |achieving |organizational |objectives,
PESTLE |Analysis |- |CORRECT |ANSWER✔✔-PESTLE |is |an |acronym |for |Political, |Economic, |Social, |
Technology, |Legal |and |Environmental |and |identifies |the |categories |utilized |to |analyze |internal |
and |external |environments. |Other |forms |of |the |acronym |include |"PEST" |and |"PESTEL."
Risk |- |CORRECT |ANSWER✔✔-The |effect |of |uncertainty |on |objectives.
, Risk |Appetite |- |CORRECT |ANSWER✔✔-The |total |exposed |amount |that |an |organization |wishes |
to |undertake |on |the |basis |of |risk |return |trade-offs |for |one |or |more |desired |and |expected |
outcomes
Risk |Attitude |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-The |beliefs, |values, |norms |and |traditions |of |behavior |of |
individuals |and |groups |within |an |organization |that |determine |the |way |in |which |they |identify, |
understand, |discuss |and |act |on |the |risk(s) |the |organization |confronts |and |takes.
Risk |Champion |- |CORRECT |ANSWER✔✔-Any |person |in |an |organization |who |is |a |leader |and |
influences |peers |regarding |the |value |that |risk |management |adds |to |the |organization.
Risk |governance |- |CORRECT |ANSWER✔✔-The |architecture |within |which |risk |management |
operates |in |a |company
Risk |Management |- |CORRECT |ANSWER✔✔-The |process |of |making |and |implementing |decisions
|that |will |minimize |the |adverse |effects |of |accidental |losses |on |an |organization.
Risk |Owner |- |CORRECT |ANSWER✔✔-An |individual |accountable |for |the |identification, |
assessment, |treatment |and |monitoring |of |risks |in |a |specific |environment
Risk |Portfolio |- |CORRECT |ANSWER✔✔-A |complete |collection |and |range |of |uncertainties |that |
affect |an |organization's |future.
