Summary RIMS CRMP Complete Study Guide; 1 Analyze
the Business Model, 2 Developing Organizational Risk
Strategies, 3 RIMS CRMP-Implementing the Risk Process,
4 Developing Organizational Risk Management
Competency, 5 Supporting Decision Making
Risks
The effect of uncertainty on objectives
The chance of something happening that will have an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as they are
discovered
Enterprise Risk Management
A strategic business discipline that supports the achievement of an organization's
objectives by addressing the full spectrum of its risks and managing the combined
impact of those risks as an interrelated risk portfolio.
Support Function: Business continuity and crisis management
Risk identification, assessment and creation of emergency response and recovery plans
related to threats or hazards that might lead to operational disruptions
Analysis
A systematic examination and evaluation of data or information by breaking it into its
component parts to uncover their relationships. An examination of data and facts to
uncover and understand cause-effect relationships, thus providing basis for problem
solving and decision making.
To embed risk management in both routine and strategic decision, what should
managers be able to recognize?
The type of decision being made; Who should be included in the decision making
process; Where in the process decisions are being made
Risk management strategies' general focus
Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit
Risk identification, assessment and treatment through audit plans with focus on fraud,
corruption, regulatory noncompliance and/or misrepresentation related to the
organization's internal control systems, financial operations, financial statements and
reporting as well as enterprise risk and the organization's risk management framework
and process.
What steps can the risk management professional take to embed risk
management in decision making?
Include risk assessment in planning process; Leverage cross-functional risk
assessment team and subject matter experts to identify enterprise risks; Consider
cascading and cumulative effects
Gap Analysis
,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.
Risk appetite
The total exposed amount that an organization wishes to undertake on the basis of risk-
return trade-offs for one or more desire and expected outcomes.
Communication and Consultation
Risk management professional's role in Implementing Risk Strategies
Support Function: Legal
Risk identification, assessment and treatment of risks related to the obligation an
organization undertakes and transfers through contracting, as well as its compliance
with applicable laws and regulatory obligations.
What are the typical failures in risk management which can be avoided if it is
embedded in the decision making process?
Program not integrated into strategy or its execution; Focused on the wrong risks; Not
executed in a repeatable process; Risk management is practiced in a silo; Activity not
viewed as being value added
Strategic Plan
Determines that actions the organization will take at any stage of the planning period as
circumstances change.
Risk owner
The individual who is ultimately accountable for ensuring that risk is managed
appropriately, including the implementation of selected responses.
Risk Identification Process
Finding, Recognizing and Recording Risks
Support Function: Compliance
Risk identification, assessment and treatment of risk related to regulations that may
affect the organization's ability to operate in its respective jurisdictions, as well as
activities that fall within its compliance and ethics programs.
To successfully integrate risk management into decision making, risk
management professionals will rely on strategies that draw on personal and
technical skills in
Building organizational awareness; . Differentiating the different types of decisions used
in varying situations using elements of decision quality; Performing various roles in the
taking risk into account in decision-making process
Strategy
A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time.
Risk tolerance
The amount of uncertainty an organization is prepared to accept in total or more
narrowly within a certain business unit, a particular risk category or for a specific
initiative.
Strategic Risk Management
A business discipline that drives deliberation and action regarding uncertainties and
untapped opportunities that affect an organization's strategy and strategic execution.
Value Chain
, The series of functions, processes, materials and activities (inputs) from concept to the
eventual end user that creates and builds value at every step in order to deliver a
product or service.
To build organizational awareness, the risk management professional needs to
do the following:
Be a persuasive communicator and facilitator; Have a clear communication plan;
Engage interested parties, including primary and secondary audiences; Demonstrate
that risk management creates the most value ; Develop feedback loops for continuous
learning
Risk Analysis
The process of characterizing and understanding the nature of risk and of considering
the level of risk in the context of the organization's willingness to accept risk.
Support Function: Safety
Risk identification, assessment and treatment of risks focused on preserving the
physical well-being of employees and third parties.
Likelihood, Consequences, other criteria such as timing, duration, vulnerability
and interdependencies
Risk is typically analyzed on the basis of
Support Function: Information Security
Risk Identification, assessment and treatment of risk arising our of or affecting
information and technology infrastructure.
To build organizational awareness, risk management creates the most value
when
Risk management Aligns with strategic goals; Takes corporate culture into account;
Involves key enterprise functions
Financial Statements
Internal source of information that includes financial analytics or projections
strategic planning team
The risk manager should be a part of the _______________________ to provide the
structure discipline for consideration of risks in a strategic portfolio.
Internal Audit Reports
Internal source of information that focuses on business practices important to the goals
and reflection of regulatory environment of the organization
risk management
__________________ should be an agenda item at every strategy session.
Support Function: Facilities
Risk identification, assessment and treatment of the organization's properties,
equipment and physical infrastructure systems.
Simple and frequent
A type of decision that are automatic, taken in the moment. These decisions generally
rely on the knowledge and capability of the decision maker using the back-of-the-napkin
technique.
Bow tie analysis
hazard analysis technique (cause and consequence)
Business impact analysis
consider business impacts at a location or from a specific process
the Business Model, 2 Developing Organizational Risk
Strategies, 3 RIMS CRMP-Implementing the Risk Process,
4 Developing Organizational Risk Management
Competency, 5 Supporting Decision Making
Risks
The effect of uncertainty on objectives
The chance of something happening that will have an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as they are
discovered
Enterprise Risk Management
A strategic business discipline that supports the achievement of an organization's
objectives by addressing the full spectrum of its risks and managing the combined
impact of those risks as an interrelated risk portfolio.
Support Function: Business continuity and crisis management
Risk identification, assessment and creation of emergency response and recovery plans
related to threats or hazards that might lead to operational disruptions
Analysis
A systematic examination and evaluation of data or information by breaking it into its
component parts to uncover their relationships. An examination of data and facts to
uncover and understand cause-effect relationships, thus providing basis for problem
solving and decision making.
To embed risk management in both routine and strategic decision, what should
managers be able to recognize?
The type of decision being made; Who should be included in the decision making
process; Where in the process decisions are being made
Risk management strategies' general focus
Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit
Risk identification, assessment and treatment through audit plans with focus on fraud,
corruption, regulatory noncompliance and/or misrepresentation related to the
organization's internal control systems, financial operations, financial statements and
reporting as well as enterprise risk and the organization's risk management framework
and process.
What steps can the risk management professional take to embed risk
management in decision making?
Include risk assessment in planning process; Leverage cross-functional risk
assessment team and subject matter experts to identify enterprise risks; Consider
cascading and cumulative effects
Gap Analysis
,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.
Risk appetite
The total exposed amount that an organization wishes to undertake on the basis of risk-
return trade-offs for one or more desire and expected outcomes.
Communication and Consultation
Risk management professional's role in Implementing Risk Strategies
Support Function: Legal
Risk identification, assessment and treatment of risks related to the obligation an
organization undertakes and transfers through contracting, as well as its compliance
with applicable laws and regulatory obligations.
What are the typical failures in risk management which can be avoided if it is
embedded in the decision making process?
Program not integrated into strategy or its execution; Focused on the wrong risks; Not
executed in a repeatable process; Risk management is practiced in a silo; Activity not
viewed as being value added
Strategic Plan
Determines that actions the organization will take at any stage of the planning period as
circumstances change.
Risk owner
The individual who is ultimately accountable for ensuring that risk is managed
appropriately, including the implementation of selected responses.
Risk Identification Process
Finding, Recognizing and Recording Risks
Support Function: Compliance
Risk identification, assessment and treatment of risk related to regulations that may
affect the organization's ability to operate in its respective jurisdictions, as well as
activities that fall within its compliance and ethics programs.
To successfully integrate risk management into decision making, risk
management professionals will rely on strategies that draw on personal and
technical skills in
Building organizational awareness; . Differentiating the different types of decisions used
in varying situations using elements of decision quality; Performing various roles in the
taking risk into account in decision-making process
Strategy
A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time.
Risk tolerance
The amount of uncertainty an organization is prepared to accept in total or more
narrowly within a certain business unit, a particular risk category or for a specific
initiative.
Strategic Risk Management
A business discipline that drives deliberation and action regarding uncertainties and
untapped opportunities that affect an organization's strategy and strategic execution.
Value Chain
, The series of functions, processes, materials and activities (inputs) from concept to the
eventual end user that creates and builds value at every step in order to deliver a
product or service.
To build organizational awareness, the risk management professional needs to
do the following:
Be a persuasive communicator and facilitator; Have a clear communication plan;
Engage interested parties, including primary and secondary audiences; Demonstrate
that risk management creates the most value ; Develop feedback loops for continuous
learning
Risk Analysis
The process of characterizing and understanding the nature of risk and of considering
the level of risk in the context of the organization's willingness to accept risk.
Support Function: Safety
Risk identification, assessment and treatment of risks focused on preserving the
physical well-being of employees and third parties.
Likelihood, Consequences, other criteria such as timing, duration, vulnerability
and interdependencies
Risk is typically analyzed on the basis of
Support Function: Information Security
Risk Identification, assessment and treatment of risk arising our of or affecting
information and technology infrastructure.
To build organizational awareness, risk management creates the most value
when
Risk management Aligns with strategic goals; Takes corporate culture into account;
Involves key enterprise functions
Financial Statements
Internal source of information that includes financial analytics or projections
strategic planning team
The risk manager should be a part of the _______________________ to provide the
structure discipline for consideration of risks in a strategic portfolio.
Internal Audit Reports
Internal source of information that focuses on business practices important to the goals
and reflection of regulatory environment of the organization
risk management
__________________ should be an agenda item at every strategy session.
Support Function: Facilities
Risk identification, assessment and treatment of the organization's properties,
equipment and physical infrastructure systems.
Simple and frequent
A type of decision that are automatic, taken in the moment. These decisions generally
rely on the knowledge and capability of the decision maker using the back-of-the-napkin
technique.
Bow tie analysis
hazard analysis technique (cause and consequence)
Business impact analysis
consider business impacts at a location or from a specific process
