RIMS CRMP EXAM 2024 NEWEST COMPLETE 200
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) / ALREADY GRADED 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.
Strategy: Consider all risks and exploit risks as part of strategy
Measurement: Include Upside of Risk (Bugalla and Kugler)
Look at building, expanding, exploiting to add value
Push and Pull risk performance data
This approach is Coordinated & Strategic
Gap analysis - ANSWER: 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) - ANSWER: An activity that signals the achievement
of organizational objectives
Key risk indicator (KRI) - ANSWER: 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 - ANSWER: Integrated into the performance objectives of the
organization for monitoring risks
Examples: KPIs and KRIs
Indemnification - ANSWER: 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 - ANSWER: 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 - ANSWER: 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 - ANSWER: Action taken when 1) costs of retaining risks
exceeds the organization's risk tolerance; 2) risks (or some portion) can be
transferred at a lower cost; 3) risks should be apportioned based on an agreement,
and 4) it is required by regulation
Insurance - ANSWER: Risk-transfer mechanism that ensured full or partial financial
compensation for the loss, damage and legal obligations of a policyholder or
beneficiary
PESTLE analysis - ANSWER: Political, Economic, Social, Technological, Legal and
Environmental and identifies the categories utilized to analyze internal and external
environments.
Risk - ANSWER: The effect of uncertainty on objectives
Chance of Something happening that has an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as discovered
Risk appetite - 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
how much risk the company will take on
linked to rewards (risk-return trade-offs)
express qualitatively or quantitively
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.
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) / ALREADY GRADED 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.
Strategy: Consider all risks and exploit risks as part of strategy
Measurement: Include Upside of Risk (Bugalla and Kugler)
Look at building, expanding, exploiting to add value
Push and Pull risk performance data
This approach is Coordinated & Strategic
Gap analysis - ANSWER: 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) - ANSWER: An activity that signals the achievement
of organizational objectives
Key risk indicator (KRI) - ANSWER: 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 - ANSWER: Integrated into the performance objectives of the
organization for monitoring risks
Examples: KPIs and KRIs
Indemnification - ANSWER: 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 - ANSWER: 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 - ANSWER: 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 - ANSWER: Action taken when 1) costs of retaining risks
exceeds the organization's risk tolerance; 2) risks (or some portion) can be
transferred at a lower cost; 3) risks should be apportioned based on an agreement,
and 4) it is required by regulation
Insurance - ANSWER: Risk-transfer mechanism that ensured full or partial financial
compensation for the loss, damage and legal obligations of a policyholder or
beneficiary
PESTLE analysis - ANSWER: Political, Economic, Social, Technological, Legal and
Environmental and identifies the categories utilized to analyze internal and external
environments.
Risk - ANSWER: The effect of uncertainty on objectives
Chance of Something happening that has an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as discovered
Risk appetite - 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
how much risk the company will take on
linked to rewards (risk-return trade-offs)
express qualitatively or quantitively
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.
