RIMS - CRMP Complete Exam with all Correct & 100%
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Risks ✔Correct 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 ✔Correct 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 ✔Correct Answer-Risk
identification, assessment and creation of emergency response and recovery plans related to
threats or hazards that might lead to operational disruptions
Analysis ✔Correct 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? ✔Correct 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 ✔Correct 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 ✔Correct 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? ✔Correct 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 ✔Correct 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 ✔Correct 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 ✔Correct Answer-Risk management professional's role in
Implementing Risk Strategies
Support Function: Legal ✔Correct 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? ✔Correct 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 ✔Correct Answer-Determines that actions the organization will take at any
stage of the planning period as circumstances change.
Risk owner ✔Correct Answer-The individual who is ultimately accountable for ensuring that
risk is managed appropriately, including the implementation of selected responses.
Risk Identification Process ✔Correct Answer-Finding, Recognizing and Recording Risks
Support Function: Compliance ✔Correct 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 ✔Correct 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 ✔Correct Answer-A complete plan of action for whatever situations might arise in
achieving an organization's goals within the established time.
Risk tolerance ✔Correct Answer-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.
, Strategic Risk Management ✔Correct Answer-A business discipline that drives deliberation
and action regarding uncertainties and untapped opportunities that affect an organization's
strategy and strategic execution.
Value Chain ✔Correct Answer-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.
To build organizational awareness, the risk management professional needs to do the following:
✔Correct Answer-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
Risk Analysis ✔Correct Answer-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.
Support Function: Safety ✔Correct Answer-Risk identification, assessment and treatment of
risks focused on preserving the physical well-being of employees and third parties.
Likelihood, Consequences, other criteria such as timing, duration, vulnerability and
interdependencies ✔Correct Answer-Risk is typically analyzed on the basis of
Support Function: Information Security ✔Correct Answer-Risk Identification, assessment and
treatment of risk arising our of or affecting information and technology infrastructure.
To build organizational awareness, risk management creates the most value when ✔Correct
Answer-Risk management Aligns with strategic goals; Takes corporate culture into account;
Involves key enterprise functions
Financial Statements ✔Correct Answer-Internal source of information that includes financial
analytics or projections
strategic planning team ✔Correct Answer-The risk manager should be a part of the
_______________________ to provide the structure discipline for consideration of risks in a
strategic portfolio.
Internal Audit Reports ✔Correct Answer-Internal source of information that focuses on
business practices important to the goals and reflection of regulatory environment of the
organization
risk management ✔Correct Answer-__________________ should be an agenda item at every
strategy session.
Verified Answers |Actual Complete Exam |Already
Graded A+
Risks ✔Correct 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 ✔Correct 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 ✔Correct Answer-Risk
identification, assessment and creation of emergency response and recovery plans related to
threats or hazards that might lead to operational disruptions
Analysis ✔Correct 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? ✔Correct 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 ✔Correct 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 ✔Correct 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? ✔Correct 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 ✔Correct 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 ✔Correct 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 ✔Correct Answer-Risk management professional's role in
Implementing Risk Strategies
Support Function: Legal ✔Correct 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? ✔Correct 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 ✔Correct Answer-Determines that actions the organization will take at any
stage of the planning period as circumstances change.
Risk owner ✔Correct Answer-The individual who is ultimately accountable for ensuring that
risk is managed appropriately, including the implementation of selected responses.
Risk Identification Process ✔Correct Answer-Finding, Recognizing and Recording Risks
Support Function: Compliance ✔Correct 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 ✔Correct 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 ✔Correct Answer-A complete plan of action for whatever situations might arise in
achieving an organization's goals within the established time.
Risk tolerance ✔Correct Answer-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.
, Strategic Risk Management ✔Correct Answer-A business discipline that drives deliberation
and action regarding uncertainties and untapped opportunities that affect an organization's
strategy and strategic execution.
Value Chain ✔Correct Answer-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.
To build organizational awareness, the risk management professional needs to do the following:
✔Correct Answer-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
Risk Analysis ✔Correct Answer-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.
Support Function: Safety ✔Correct Answer-Risk identification, assessment and treatment of
risks focused on preserving the physical well-being of employees and third parties.
Likelihood, Consequences, other criteria such as timing, duration, vulnerability and
interdependencies ✔Correct Answer-Risk is typically analyzed on the basis of
Support Function: Information Security ✔Correct Answer-Risk Identification, assessment and
treatment of risk arising our of or affecting information and technology infrastructure.
To build organizational awareness, risk management creates the most value when ✔Correct
Answer-Risk management Aligns with strategic goals; Takes corporate culture into account;
Involves key enterprise functions
Financial Statements ✔Correct Answer-Internal source of information that includes financial
analytics or projections
strategic planning team ✔Correct Answer-The risk manager should be a part of the
_______________________ to provide the structure discipline for consideration of risks in a
strategic portfolio.
Internal Audit Reports ✔Correct Answer-Internal source of information that focuses on
business practices important to the goals and reflection of regulatory environment of the
organization
risk management ✔Correct Answer-__________________ should be an agenda item at every
strategy session.
