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
Risks - 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 - 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 -
answer Risk identification, assessment and creation of emergency
,response and recovery plans related to threats or hazards that
might lead to operational disruptions
Analysis - 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? - 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 - 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 - 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? - 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 - 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 - 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 - answer Risk management
professional's role in Implementing Risk Strategies
Support Function: Legal - 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? -
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 - answer Determines that actions the organization
will take at any stage of the planning period as circumstances
change.
Risk owner - answer The individual who is ultimately accountable
for ensuring that risk is managed appropriately, including the
implementation of selected responses.
Risk Identification Process - answer Finding, Recognizing and
Recording Risks
Support Function: Compliance - 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 - 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 - answer A complete plan of action for whatever
situations might arise in achieving an organization's goals within
the established time.
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
Risks - 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 - 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 -
answer Risk identification, assessment and creation of emergency
,response and recovery plans related to threats or hazards that
might lead to operational disruptions
Analysis - 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? - 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 - 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 - 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? - 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 - 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 - 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 - answer Risk management
professional's role in Implementing Risk Strategies
Support Function: Legal - 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? -
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 - answer Determines that actions the organization
will take at any stage of the planning period as circumstances
change.
Risk owner - answer The individual who is ultimately accountable
for ensuring that risk is managed appropriately, including the
implementation of selected responses.
Risk Identification Process - answer Finding, Recognizing and
Recording Risks
Support Function: Compliance - 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 - 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 - answer A complete plan of action for whatever
situations might arise in achieving an organization's goals within
the established time.
