ALL RIMS CRMP EXAM
STUDY GUIDE COMMON
TERMS DEFINITIONS
Benchmarkingb-bcorrectbanswer-
Thebprocessbofbmeasuringbthebperformancebofbanborganizationbagainstbexternalbsta
ndardsbofbreferencebthatbfrequentlybcomebfrombsimilarborganizationsbdoingbsimilarbt
hings.
Corporatebgovernanceb-bcorrectbanswer-
Thebsystembofbrules,bpracticesbandbprocessesbbybwhichbabcompanybisbdirectedband
bcontrolled
Enterprisebriskbmanagementb-bcorrectbanswer-
Abstrategicbdisciplinebthatbsupportsbthebachievementbofbanborganization'sbobjectives
, bbybaddressingbthebfullbspectrumbofbitsbriskbandbmanagingbthebcombinedbimpactbofbt
hosebrisksbasbanbinterrelatedbriskbportfolio.
Strategy:bConsiderballbrisksbandbexploitbrisksbasbpartbofbstrategy
Measurement:bIncludebUpsidebofbRiskb(BugallabandbKugler)
Lookbatbbuilding,bexpanding,bexploitingbtobaddbvalue
PushbandbPullbriskbperformancebdata
ThisbapproachbisbCoordinatedb&bStrategic
Gapbanalysisb-bcorrectbanswer-
Comparisonbofbanbexistingbprocessborbprocedurebtobrecognizedbstandardsbinborderbt
obidentifybdeficienciesborbexcessesbinbthebexistingbprocess.
Techniquebthatbcanbbebusedbtobdeterminebwhatbstepsbmightbneedbtobbebtakenbtobim
provebtheborganization'sbcapacitybtobmovebfrombabcurrentbstatebtobabdesiredbfutureb
state.
Keybperformancebindicatorb(KPI)b-bcorrectbanswer-
Anbactivitybthatbsignalsbthebachievementbofborganizationalbobjectives
Keybriskbindicatorb(KRI)b-bcorrectbanswer-
Abmeasurementbofbhowbriskbandbvolatilitybrelatebtobachievingborganizationalbobjectiv
es
Designedbtobmanagebthebdownsidebofbrisk
Leadingbindicatorsbofbriskbtobbusinessbperformance;bgivingbearlybwarningbofbpotenti
albrisk
earlybsignalbofbchangesbinbriskbexposuresbinbvariousbareasbofbthebenterprise
RiskbMetricsb-bcorrectbanswer-
Integratedbintobthebperformancebobjectivesbofbtheborganizationbforbmonitoringbrisks
Examples:bKPIsbandbKRIs
Indemnificationb-bcorrectbanswer-
Contractualbobligationbplacedbonbthebindemnifierbtobreturnbthebindemnifiedbtobessent
iallybthebsamebfinancialbconditionbthatbexistedbpriorbtobtheblossborbclaim,btobstandbinb
asbthebsourcebforbfinancingbtheblegalbliability
ContractualbRiskbTransferb-bcorrectbanswer-
Ablegallybbindingbagreementbbetweenbtwobpartiesbwherebybonebagreesbtobindemnify
bandbholdbanotherbpartybharmlessbforbspecifiedbactions,binactions,binjuriesborbdamag
es
STUDY GUIDE COMMON
TERMS DEFINITIONS
Benchmarkingb-bcorrectbanswer-
Thebprocessbofbmeasuringbthebperformancebofbanborganizationbagainstbexternalbsta
ndardsbofbreferencebthatbfrequentlybcomebfrombsimilarborganizationsbdoingbsimilarbt
hings.
Corporatebgovernanceb-bcorrectbanswer-
Thebsystembofbrules,bpracticesbandbprocessesbbybwhichbabcompanybisbdirectedband
bcontrolled
Enterprisebriskbmanagementb-bcorrectbanswer-
Abstrategicbdisciplinebthatbsupportsbthebachievementbofbanborganization'sbobjectives
, bbybaddressingbthebfullbspectrumbofbitsbriskbandbmanagingbthebcombinedbimpactbofbt
hosebrisksbasbanbinterrelatedbriskbportfolio.
Strategy:bConsiderballbrisksbandbexploitbrisksbasbpartbofbstrategy
Measurement:bIncludebUpsidebofbRiskb(BugallabandbKugler)
Lookbatbbuilding,bexpanding,bexploitingbtobaddbvalue
PushbandbPullbriskbperformancebdata
ThisbapproachbisbCoordinatedb&bStrategic
Gapbanalysisb-bcorrectbanswer-
Comparisonbofbanbexistingbprocessborbprocedurebtobrecognizedbstandardsbinborderbt
obidentifybdeficienciesborbexcessesbinbthebexistingbprocess.
Techniquebthatbcanbbebusedbtobdeterminebwhatbstepsbmightbneedbtobbebtakenbtobim
provebtheborganization'sbcapacitybtobmovebfrombabcurrentbstatebtobabdesiredbfutureb
state.
Keybperformancebindicatorb(KPI)b-bcorrectbanswer-
Anbactivitybthatbsignalsbthebachievementbofborganizationalbobjectives
Keybriskbindicatorb(KRI)b-bcorrectbanswer-
Abmeasurementbofbhowbriskbandbvolatilitybrelatebtobachievingborganizationalbobjectiv
es
Designedbtobmanagebthebdownsidebofbrisk
Leadingbindicatorsbofbriskbtobbusinessbperformance;bgivingbearlybwarningbofbpotenti
albrisk
earlybsignalbofbchangesbinbriskbexposuresbinbvariousbareasbofbthebenterprise
RiskbMetricsb-bcorrectbanswer-
Integratedbintobthebperformancebobjectivesbofbtheborganizationbforbmonitoringbrisks
Examples:bKPIsbandbKRIs
Indemnificationb-bcorrectbanswer-
Contractualbobligationbplacedbonbthebindemnifierbtobreturnbthebindemnifiedbtobessent
iallybthebsamebfinancialbconditionbthatbexistedbpriorbtobtheblossborbclaim,btobstandbinb
asbthebsourcebforbfinancingbtheblegalbliability
ContractualbRiskbTransferb-bcorrectbanswer-
Ablegallybbindingbagreementbbetweenbtwobpartiesbwherebybonebagreesbtobindemnify
bandbholdbanotherbpartybharmlessbforbspecifiedbactions,binactions,binjuriesborbdamag
es
