RIMS CRMP Exam Study Guide
Common Terms
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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
Common Terms
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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
