RIMS - CRMP COMPLETE STUDY GUIDE EXAM QUESTIONS AND ANSWERS Latest Update.pdf

RIMS - CRMP Complete Study Guide m m m m m




1. Risks: The effect of uncertainty on objectives
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The chance of something happening that will have an impact on objectives
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Being prepared for the worst and being poised to exploit opportunities as they are
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discovered

2. Enterprise Risk Management: A strategic business discipline that supports thea
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chievement of an organization's objectives by addressing the full spectrum of its ris
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ks and managing the combined impact of those risks as an interrelated risk portfolio
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.

3. Support Function: Business continuity and crisis management: Risk identifi-
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cation, assessment and creation of emergency response and recovery plans relatedto t
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hreats or hazards that might lead to operational disruptions
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4. Analysis: A systematic examination and evaluation of data or information by brea
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king it into its component parts to uncover their relationships. An examination ofdata
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and facts to uncover and understand cause-
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effect relationships, thus providingbasis for problem solving and decision making.
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5. To embed risk management in both routine and strategic decision, what sh
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ould managers be able to recognize?: The type of decision being made; Whoshoul
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,d be included in the decision making process; Where in the process decisionsare bein
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g made
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6. Risk management strategies' general focus: Meeting or exceeding an organi-
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zation's objectives
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Adhering to control- m m




based objectives, rules and/or controlsComplying with regu
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latory requirements
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7. Support Function: Internal Audit: Risk identification, assessment and treatmentt
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hrough audit plans with focus on fraud, corruption, regulatory noncompliance and/or
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misrepresentation related to the organization's internal control systems, financial o
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perations, financial statements and reporting as well as enterprise risk and the orga
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nization's risk management framework and process.
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8. What steps can the risk management professional take to embed risk mana
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gement in decision making?: Include risk assessment in planning process;Leverag
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e cross-
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functional risk assessment team and subject matter experts to identify enterprise ris
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ks; Consider cascading and cumulative effects
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9. Gap Analysis: Technique that can be used to determine what steps might needto
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be taken to improve the organization's capacity to move from a current state to ades
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,ired future state.
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10. Risk appetite: The total exposed amount that an organization wishes to un-
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m dertake on the basis of risk-return trade-
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offs for one or more desire and expectedoutcomes.
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, 11. Communication and Consultation: Risk management professional's role inI m m m m m m m m




mplementing Risk Strategies m m




12. Support Function: Legal: Risk identification, assessment and treatment of risks
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m related to the obligation an organization undertakes and transfers through con-
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tracting, as well as its compliance with applicable laws and regulatory obligations.
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13. What are the typical failures in risk management which can be avoided if i
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t is embedded in the decision making process?: Program not integrated into stra
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tegy or its execution; Focused on the wrong risks; Not executed in a repeatableproce
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ss; Risk management is practiced in a silo; Activity not viewed as being valueadded
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14. Strategic Plan: Determines that actions the organization will take at any stageof
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m the planning period as circumstances change.
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15. Risk owner: The individual who is ultimately accountable for ensuring that risk
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is managed appropriately, including the implementation of selected responses.
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16. Risk Identification Process: Finding, Recognizing and Recording Risks
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17. Support Function: Compliance: Risk identification, assessment and treatmentof
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risk related to regulations that may affect the organization's ability to operate in itsre
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spective jurisdictions, as well as activities that fall within its compliance and ethicspr
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ograms.

18. To successfully integrate risk management into decision making, risk man
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