RIMS CRMP COMPLETE STUDY GUIDE
WITH CORRECT ANSWERS
Risks - CORRECT ANSWER-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 - CORRECT ANSWER-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 -
CORRECT ANSWER-Risk identification, assessment and
creation of emergency response and recovery plans related to
threats or hazards that might lead to operational disruptions
Analysis - CORRECT ANSWER-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? -
CORRECT ANSWER-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 - CORRECT
ANSWER-Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit - CORRECT ANSWER-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? - CORRECT
ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-Risk
management professional's role in Implementing Risk
Strategies
Support Function: Legal - CORRECT ANSWER-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? -
CORRECT ANSWER-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 - CORRECT ANSWER-Determines that actions
the organization will take at any stage of the planning period as
circumstances change.
Risk owner - CORRECT ANSWER-The individual who is
ultimately accountable for ensuring that risk is managed
appropriately, including the implementation of selected
responses.
Risk Identification Process - CORRECT ANSWER-Finding,
Recognizing and Recording Risks
Support Function: Compliance - CORRECT ANSWER-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 - CORRECT
ANSWER-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 - CORRECT ANSWER-A complete plan of action for
whatever situations might arise in achieving an organization's
goals within the established time.
Risk tolerance - CORRECT ANSWER-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 - CORRECT ANSWER-A business
discipline that drives deliberation and action regarding
uncertainties and untapped opportunities that affect an
organization's strategy and strategic execution.
Value Chain - CORRECT ANSWER-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: - CORRECT ANSWER-
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 - CORRECT ANSWER-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 - CORRECT ANSWER-Risk
identification, assessment and treatment of risks focused on
preserving the physical well-being of employees and third
parties.
WITH CORRECT ANSWERS
Risks - CORRECT ANSWER-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 - CORRECT ANSWER-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 -
CORRECT ANSWER-Risk identification, assessment and
creation of emergency response and recovery plans related to
threats or hazards that might lead to operational disruptions
Analysis - CORRECT ANSWER-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? -
CORRECT ANSWER-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 - CORRECT
ANSWER-Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit - CORRECT ANSWER-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? - CORRECT
ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-Risk
management professional's role in Implementing Risk
Strategies
Support Function: Legal - CORRECT ANSWER-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? -
CORRECT ANSWER-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 - CORRECT ANSWER-Determines that actions
the organization will take at any stage of the planning period as
circumstances change.
Risk owner - CORRECT ANSWER-The individual who is
ultimately accountable for ensuring that risk is managed
appropriately, including the implementation of selected
responses.
Risk Identification Process - CORRECT ANSWER-Finding,
Recognizing and Recording Risks
Support Function: Compliance - CORRECT ANSWER-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 - CORRECT
ANSWER-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 - CORRECT ANSWER-A complete plan of action for
whatever situations might arise in achieving an organization's
goals within the established time.
Risk tolerance - CORRECT ANSWER-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 - CORRECT ANSWER-A business
discipline that drives deliberation and action regarding
uncertainties and untapped opportunities that affect an
organization's strategy and strategic execution.
Value Chain - CORRECT ANSWER-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: - CORRECT ANSWER-
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 - CORRECT ANSWER-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 - CORRECT ANSWER-Risk
identification, assessment and treatment of risks focused on
preserving the physical well-being of employees and third
parties.
