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 Exam
Questions and Answers
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 - Correct Answers -Risks
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. - Correct Answers -Enterprise Risk
Management
Risk identification, assessment and creation of emergency response and recovery plans
related to threats or hazards that might lead to operational disruptions - Correct
Answers -Support Function: Business continuity and crisis management
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. - Correct Answers –Analysis
Elements of treatment plans: the required ___________________ of risks as part of
normal business activity and reporting - Correct Answers -reporting and monitoring
this matters when it is measured and can achieve a trickle down effect as the operations
and functional managers engage their staff to support in the achieving the objectives -
Correct Answers -Accountability for risk
effect of significant acquisitions, organizational and process changes, other changes -
Correct Answers -What should be evaluated that may dramatically impact the
organization's strategic goals?
evaluating metrics and reports that result from a disciplined and informed risk
management process - Correct Answers -How can risk management professionals gain
insights into organizational performance related to the effectiveness of the
organizational risk management?
The type of decision being made; Who should be included in the decision making
process; Where in the process decisions are being made - Correct Answers -To embed
risk management in both routine and strategic decision, what should managers be able
to recognize?
Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements - Correct Answers -Risk management
strategies' general focus
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. - Correct Answers -Support Function: Internal Audit
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 - Correct Answers -What steps can the risk
management professional take to embed risk management in decision making?
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. -
Correct Answers -Gap Analysis
,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. - Correct Answers -
Risk appetite
Risk management professional's role in Implementing Risk Strategies - Correct Answers
-Communication and Consultation
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. - Correct Answers -Support Function:
Legal
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 - Correct Answers -What are the typical failures in risk
management which can be avoided if it is embedded in the decision making process?
Determines that actions the organization will take at any stage of the planning period as
circumstances change. - Correct Answers -Strategic Plan
The individual who is ultimately accountable for ensuring that risk is managed
appropriately, including the implementation of selected responses. - Correct Answers -
Risk owner
Finding, Recognizing and Recording Risks - Correct Answers -Risk Identification
Process
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. - Correct Answers -Support
Function: Compliance
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 - Correct Answers -To successfully
integrate risk management into decision making, risk management professionals will
rely on strategies that draw on personal and technical skills in
A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time. - Correct Answers -Strategy
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. - Correct Answers -Risk tolerance
, A business discipline that drives deliberation and action regarding uncertainties and
untapped opportunities that affect an organization's strategy and strategic execution. -
Correct Answers -Strategic Risk Management
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. - Correct Answers -Value Chain
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 - Correct Answers -To build organizational awareness, the risk management
professional needs to do the following:
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. - Correct
Answers -Risk Analysis
Risk identification, assessment and treatment of risks focused on preserving the
physical well-being of employees and third parties. - Correct Answers -Support
Function: Safety
Risk is typically analyzed on the basis of - Correct Answers -Likelihood, Consequences,
other criteria such as timing, duration, vulnerability and interdependencies
Risk Identification, assessment and treatment of risk arising our of or affecting
information and technology infrastructure. - Correct Answers -Support Function:
Information Security
Risk management Aligns with strategic goals; Takes corporate culture into account;
Involves key enterprise functions - Correct Answers -To build organizational awareness,
risk management creates the most value when
Internal source of information that includes financial analytics or projections - Correct
Answers -Financial Statements
The risk manager should be a part of the _______________________ to provide the
structure discipline for consideration of risks in a strategic portfolio. - Correct Answers -
strategic planning team
Internal source of information that focuses on business practices important to the goals
and reflection of regulatory environment of the organization - Correct Answers -Internal
Audit Reports
__________________ should be an agenda item at every strategy session. - Correct
Answers -risk management
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 Exam
Questions and Answers
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 - Correct Answers -Risks
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. - Correct Answers -Enterprise Risk
Management
Risk identification, assessment and creation of emergency response and recovery plans
related to threats or hazards that might lead to operational disruptions - Correct
Answers -Support Function: Business continuity and crisis management
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. - Correct Answers –Analysis
Elements of treatment plans: the required ___________________ of risks as part of
normal business activity and reporting - Correct Answers -reporting and monitoring
this matters when it is measured and can achieve a trickle down effect as the operations
and functional managers engage their staff to support in the achieving the objectives -
Correct Answers -Accountability for risk
effect of significant acquisitions, organizational and process changes, other changes -
Correct Answers -What should be evaluated that may dramatically impact the
organization's strategic goals?
evaluating metrics and reports that result from a disciplined and informed risk
management process - Correct Answers -How can risk management professionals gain
insights into organizational performance related to the effectiveness of the
organizational risk management?
The type of decision being made; Who should be included in the decision making
process; Where in the process decisions are being made - Correct Answers -To embed
risk management in both routine and strategic decision, what should managers be able
to recognize?
Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements - Correct Answers -Risk management
strategies' general focus
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. - Correct Answers -Support Function: Internal Audit
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 - Correct Answers -What steps can the risk
management professional take to embed risk management in decision making?
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. -
Correct Answers -Gap Analysis
,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. - Correct Answers -
Risk appetite
Risk management professional's role in Implementing Risk Strategies - Correct Answers
-Communication and Consultation
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. - Correct Answers -Support Function:
Legal
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 - Correct Answers -What are the typical failures in risk
management which can be avoided if it is embedded in the decision making process?
Determines that actions the organization will take at any stage of the planning period as
circumstances change. - Correct Answers -Strategic Plan
The individual who is ultimately accountable for ensuring that risk is managed
appropriately, including the implementation of selected responses. - Correct Answers -
Risk owner
Finding, Recognizing and Recording Risks - Correct Answers -Risk Identification
Process
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. - Correct Answers -Support
Function: Compliance
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 - Correct Answers -To successfully
integrate risk management into decision making, risk management professionals will
rely on strategies that draw on personal and technical skills in
A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time. - Correct Answers -Strategy
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. - Correct Answers -Risk tolerance
, A business discipline that drives deliberation and action regarding uncertainties and
untapped opportunities that affect an organization's strategy and strategic execution. -
Correct Answers -Strategic Risk Management
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. - Correct Answers -Value Chain
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 - Correct Answers -To build organizational awareness, the risk management
professional needs to do the following:
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. - Correct
Answers -Risk Analysis
Risk identification, assessment and treatment of risks focused on preserving the
physical well-being of employees and third parties. - Correct Answers -Support
Function: Safety
Risk is typically analyzed on the basis of - Correct Answers -Likelihood, Consequences,
other criteria such as timing, duration, vulnerability and interdependencies
Risk Identification, assessment and treatment of risk arising our of or affecting
information and technology infrastructure. - Correct Answers -Support Function:
Information Security
Risk management Aligns with strategic goals; Takes corporate culture into account;
Involves key enterprise functions - Correct Answers -To build organizational awareness,
risk management creates the most value when
Internal source of information that includes financial analytics or projections - Correct
Answers -Financial Statements
The risk manager should be a part of the _______________________ to provide the
structure discipline for consideration of risks in a strategic portfolio. - Correct Answers -
strategic planning team
Internal source of information that focuses on business practices important to the goals
and reflection of regulatory environment of the organization - Correct Answers -Internal
Audit Reports
__________________ should be an agenda item at every strategy session. - Correct
Answers -risk management
