RIMS-CRMP Vocab-Definitions Exam
Questions and Answers
Benchmarking - Correct Answers -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 - Correct Answers -The system of rules, practices, and
processes by which a company is directed and controlled.
Enterprise Risk Management - Correct Answers -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
Indemnification - Correct Answers -Contractual obligation placed on the indemnifier to
return the indemnified to essentially the same financial condition that existed prior to the
loss or claim or to stand in as the source for financing the legal liability.
Contractual Risk Transfer - Correct Answers -A legally binding agreement between two
parties whereby one agrees to indemnify and hold another party harmless for specified
actions, inactions, injuries or damages.
Hold Harmless - Correct Answers -Wording that requires one party to shield the other
party from the effects of the legal liability assignable to transferor or obligor.
Gap Analysis - Correct Answers -Comparison of an existing process or procedure
(current state-what is) to a desired, future state (what should be) in order to identify
deficiencies or excesses in the existing process (what to consider).
Key Performance Indicators (KPIs) - Correct Answers -Measure(s) of deviations from
expected outcomes to help a firm see how it is performing.
Key Risk Indicators (KRIs) - Correct Answers -Leading indicator(s) of risk to business
performance, giving early warning about potential risks.
PESTLE Analysis - Correct Answers -Political, Economic, Social, technological, Legal
and Environmental and identifies the categories utilized to analyze internal and external
environments.
Risk - Correct Answers -The effect of uncertainty of objectives.
, Risk Attitude - Correct Answers -An organization's or individual's view/perspective of the
perceived qualitative and quantitative value that may be gained in comparison to the
related potential loss or losses.
Risk Appetite - Correct Answers -The total exposed amount that an organization wishes
to undertake on the basis of risk-return trade-offs for one or more desired and expected
outcomes.
Risk Culture - Correct Answers -The beliefs, values, norms, and traditions of behavior of
individuals and groups within an organization that determine the way in which they
identify, understand, discuss, and act on the risk(s) the organization confronts and
takes.
Risk Champion - Correct Answers -Any person in an organization who is a leader and
influences peers regarding the value that risk management adds to the organization.
Risk Governance - Correct Answers -Encompasses the oversight, practices and
respective roles and responsibilities for risk within an organization's unique corporate
governance.
Risk Management - Correct Answers -Coordinated activities to plan, direct, control and
make decisions concerning the effects of uncertainty on objectives.
Risk Owner - Correct Answers -An individual accountable for the identification,
assessment, treatment, and monitoring of risks in a specific environment.
Risk Portfolio - Correct Answers -A broad collection and range of uncertainties that can
affect an organization's future
Risk Tolerance - Correct Answers -The amount of uncertainty an organization is
prepared to accept in total or more narrowly within a certain business unit, a particular
category or for a specific initiative.
Root Cause - Correct Answers -Underlying or initiating risk source or driver that
produces certain outcomes or changes the impact of an outcome or outcomes.
Commonly used to describe the point in a chain of events or conditions where an
intervention could reasonably be implemented to improve performance or prevent an
undesirable outcome.
Root Cause Analysis - Correct Answers -Multiple risk assessment techniques and
approaches, at times applied in a series, which are designed to identify the underlying
or initiating risk source(s) or driver(s).
Strategic Risk Management (SRM) - Correct Answers -A business discipline that drives
deliberation and action regarding uncertainties and untapped opportunities that affect an
organization's strategy and strategy execution.
Questions and Answers
Benchmarking - Correct Answers -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 - Correct Answers -The system of rules, practices, and
processes by which a company is directed and controlled.
Enterprise Risk Management - Correct Answers -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
Indemnification - Correct Answers -Contractual obligation placed on the indemnifier to
return the indemnified to essentially the same financial condition that existed prior to the
loss or claim or to stand in as the source for financing the legal liability.
Contractual Risk Transfer - Correct Answers -A legally binding agreement between two
parties whereby one agrees to indemnify and hold another party harmless for specified
actions, inactions, injuries or damages.
Hold Harmless - Correct Answers -Wording that requires one party to shield the other
party from the effects of the legal liability assignable to transferor or obligor.
Gap Analysis - Correct Answers -Comparison of an existing process or procedure
(current state-what is) to a desired, future state (what should be) in order to identify
deficiencies or excesses in the existing process (what to consider).
Key Performance Indicators (KPIs) - Correct Answers -Measure(s) of deviations from
expected outcomes to help a firm see how it is performing.
Key Risk Indicators (KRIs) - Correct Answers -Leading indicator(s) of risk to business
performance, giving early warning about potential risks.
PESTLE Analysis - Correct Answers -Political, Economic, Social, technological, Legal
and Environmental and identifies the categories utilized to analyze internal and external
environments.
Risk - Correct Answers -The effect of uncertainty of objectives.
, Risk Attitude - Correct Answers -An organization's or individual's view/perspective of the
perceived qualitative and quantitative value that may be gained in comparison to the
related potential loss or losses.
Risk Appetite - Correct Answers -The total exposed amount that an organization wishes
to undertake on the basis of risk-return trade-offs for one or more desired and expected
outcomes.
Risk Culture - Correct Answers -The beliefs, values, norms, and traditions of behavior of
individuals and groups within an organization that determine the way in which they
identify, understand, discuss, and act on the risk(s) the organization confronts and
takes.
Risk Champion - Correct Answers -Any person in an organization who is a leader and
influences peers regarding the value that risk management adds to the organization.
Risk Governance - Correct Answers -Encompasses the oversight, practices and
respective roles and responsibilities for risk within an organization's unique corporate
governance.
Risk Management - Correct Answers -Coordinated activities to plan, direct, control and
make decisions concerning the effects of uncertainty on objectives.
Risk Owner - Correct Answers -An individual accountable for the identification,
assessment, treatment, and monitoring of risks in a specific environment.
Risk Portfolio - Correct Answers -A broad collection and range of uncertainties that can
affect an organization's future
Risk Tolerance - Correct Answers -The amount of uncertainty an organization is
prepared to accept in total or more narrowly within a certain business unit, a particular
category or for a specific initiative.
Root Cause - Correct Answers -Underlying or initiating risk source or driver that
produces certain outcomes or changes the impact of an outcome or outcomes.
Commonly used to describe the point in a chain of events or conditions where an
intervention could reasonably be implemented to improve performance or prevent an
undesirable outcome.
Root Cause Analysis - Correct Answers -Multiple risk assessment techniques and
approaches, at times applied in a series, which are designed to identify the underlying
or initiating risk source(s) or driver(s).
Strategic Risk Management (SRM) - Correct Answers -A business discipline that drives
deliberation and action regarding uncertainties and untapped opportunities that affect an
organization's strategy and strategy execution.
