RIMS CRMP EXAM 2026 EXAM PREP SCRIPT
FULL QUESTION SET APPROVED
◉ 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.
FULL QUESTION SET APPROVED
◉ 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.
