SHRM CP - Risk Management Exam
Actual Questions and Answers 2026
Significant differences between ISO 31000 and COSO -
correct answer ✅1. COSO tends to be more compliance-oriented,
while ISO is more proactive and is applicable to a broader range of
organizations.
2. COSO focuses traditional definition of stakeholders
(owners/shareholders), while ISO reflects a more contemporary
focus on organizational stakeholders.
3. COSO risk = adverse, ISO Risk = uncertainty
Risk Management -
correct answer ✅"coordinated activities to direct and control an
organization with regard to risk."
Risk management strategies -
correct answer ✅designed to change the probability of a risk event
occurring and/or the degree of its impact on the organization's
objectives
Risk Control -
correct answer ✅An action taken to manage a risk
,SHRM CP - Risk Management Exam
Actual Questions and Answers 2026
COSO Enterprise Risk Management -
correct answer ✅created in the U.S., primarily for the needs of the
financial industry and to support financial auditing, (used as
framework for ISO)
Benefits of Risk Management to Organization -
correct answer ✅1. Support Strategy
2. Better response to Risk
3. Consistent Response & Better predictability
4. Efficiencies/Opportunities better identified and seized
5. Better understanding and management of the interrelationships
between Risks
Barriers to Risk Management -
correct answer ✅1. Structural - Silo Structures overlook
dependencies
, SHRM CP - Risk Management Exam
Actual Questions and Answers 2026
2. Cognitive - Lack of creativity and openness to change. If -then vs.
What-if
3. Cultural - type of mindsets that are sought, instilled and
rewarded
Known knowns -
correct answer ✅events that are to be expected and so involve
little uncertainty
Known unknowns -
correct answer ✅uncertainties that we know exist but we don't
know much about their probability or impact
Unknown unknown -
correct answer ✅risks that we don't know exist. They are the
events that "blindside" an organization
"Black swans" -
correct answer ✅are unforeseen "outlier" events that are
Actual Questions and Answers 2026
Significant differences between ISO 31000 and COSO -
correct answer ✅1. COSO tends to be more compliance-oriented,
while ISO is more proactive and is applicable to a broader range of
organizations.
2. COSO focuses traditional definition of stakeholders
(owners/shareholders), while ISO reflects a more contemporary
focus on organizational stakeholders.
3. COSO risk = adverse, ISO Risk = uncertainty
Risk Management -
correct answer ✅"coordinated activities to direct and control an
organization with regard to risk."
Risk management strategies -
correct answer ✅designed to change the probability of a risk event
occurring and/or the degree of its impact on the organization's
objectives
Risk Control -
correct answer ✅An action taken to manage a risk
,SHRM CP - Risk Management Exam
Actual Questions and Answers 2026
COSO Enterprise Risk Management -
correct answer ✅created in the U.S., primarily for the needs of the
financial industry and to support financial auditing, (used as
framework for ISO)
Benefits of Risk Management to Organization -
correct answer ✅1. Support Strategy
2. Better response to Risk
3. Consistent Response & Better predictability
4. Efficiencies/Opportunities better identified and seized
5. Better understanding and management of the interrelationships
between Risks
Barriers to Risk Management -
correct answer ✅1. Structural - Silo Structures overlook
dependencies
, SHRM CP - Risk Management Exam
Actual Questions and Answers 2026
2. Cognitive - Lack of creativity and openness to change. If -then vs.
What-if
3. Cultural - type of mindsets that are sought, instilled and
rewarded
Known knowns -
correct answer ✅events that are to be expected and so involve
little uncertainty
Known unknowns -
correct answer ✅uncertainties that we know exist but we don't
know much about their probability or impact
Unknown unknown -
correct answer ✅risks that we don't know exist. They are the
events that "blindside" an organization
"Black swans" -
correct answer ✅are unforeseen "outlier" events that are
