RIMS - CRMP EXAM STUDY GUIDE WITH COMPLETE
SOLUTIONS.
1. Risks 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
2. Enterprise Risk Manage ment 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
3. Support Function: Business risk portfolio.
continuity and crisis management
Risk identification, assessment and creation of
emergency response and recovery plans re lated to
threats or hazards that might lead to operational
disruptions
4. Analysis A systematic examination and evaluation of data or
information by breaking it into its compo nent parts to
uncover their relationships. An ex amination of data
and facts to uncover and un derstand causeeffect
relationships, thus pro viding basis for problem
solving and decision making.
5. To embed risk management in The type of decision being made; Who should be
both routine and strategic included in the decision making process; Where in the
decision, what should managers process decisions are being made
be able to recognize?
6. Risk management strate gies' Meeting or exceeding an organization's objec tives
general focus Adhering to controlbased objectives, rules and/or
controls
Complying with regulatory requirements
1/
,7. Support Function: Internal Audit Risk identification, assessment and treatment through
audit plans with focus on fraud, cor ruption,
regulatory noncompliance and/or mis representation
related to the organization's in ternal control systems,
financial operations, fi nancial statements and
reporting as well as enterprise risk and the
organization's risk man agement framework and
process.
8. What steps can the risk
management professional take to
Include risk assessment in planning process;
embed risk man agement in
Leverage crossfunctional risk assessment team and
decision mak ing?
subject matter experts to identify en terprise risks;
Consider cascading and cumula tive effects
9. Gap Analysis 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.
10. Risk appetite The total exposed amount that an organization
wishes to undertake on the basis of riskreturn
tradeoffs for one or more desire and expected
outcomes.
11. Communication and Con Risk management professional's role in Imple
sultation menting Risk Strategies
12. Support Function: Legal 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.
13. What are the typical fail ures in Program not integrated into strategy or its exe cution;
risk management which can be Focused on the wrong risks; Not execut ed in a
avoided if it repeatable process; Risk management
2/
, is embedded in the deci sion is practiced in a silo; Activity not viewed as being
making process? value added
14. Strategic Plan Determines that actions the organization will
take at any stage of the planning period as
circumstances change.
15. Risk owner The individual who is ultimately accountable for
ensuring that risk is managed appropriate ly,
including the implementation of selected re sponses.
16. Risk Identification Finding, Recognizing and Recording Risks
Process
Risk identification, assessment and treatment of risk
17. Support Function: Compli ance
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.
18. To successfully integrate risk
management into decision Building organizational awareness; . Differen tiating
making, risk management the different types of decisions used in varying
profession als will rely on situations using elements of decision quality;
strategies that draw on personal Performing various roles in the taking risk into
and technical skills in account in decisionmaking process
19. Strategy A complete plan of action for whatever situa tions
might arise in achieving an organization's goals within
the established time.
20. Risk tolerance 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.
3/
, 21. Strategic Risk Manage ment A business discipline that drives deliberation and
action regarding uncertainties and un tapped
opportunities that affect an organiza tion's strategy
and strategic execution.
22. Value Chain The series of functions, processes, materials and
activities (inputs) from concept to the even tual end
user that creates and builds value at every step in
order to deliver a product or ser vice.
23. To build organization al Be a persuasive communicator and facilitator; Have a
awareness, the risk clear communication plan; Engage in terested parties,
management professional needs including primary and sec ondary audiences;
to do the following: Demonstrate that risk man agement creates the most
value ; Develop feed back loops for continuous
learning
24. Risk Analysis The process of characterizing and understand
ing the nature of risk and of considering the level of
risk in the context of the organization's willingness to
accept risk.
25. Support Function: Safety Risk identification, assessment and treatment
of risks focused on preserving the physical
wellbeing of employees and third parties.
26. Likelihood, Conse quences, Risk is typically analyzed on the basis of
other criteria such as timing,
duration, vulnerability and
interde pendencies
27. Support Function: Infor mation Risk Identification, assessment and treatment of risk
Security arising our of or affecting information and technology
infrastructure.
4/
SOLUTIONS.
1. Risks 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
2. Enterprise Risk Manage ment 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
3. Support Function: Business risk portfolio.
continuity and crisis management
Risk identification, assessment and creation of
emergency response and recovery plans re lated to
threats or hazards that might lead to operational
disruptions
4. Analysis A systematic examination and evaluation of data or
information by breaking it into its compo nent parts to
uncover their relationships. An ex amination of data
and facts to uncover and un derstand causeeffect
relationships, thus pro viding basis for problem
solving and decision making.
5. To embed risk management in The type of decision being made; Who should be
both routine and strategic included in the decision making process; Where in the
decision, what should managers process decisions are being made
be able to recognize?
6. Risk management strate gies' Meeting or exceeding an organization's objec tives
general focus Adhering to controlbased objectives, rules and/or
controls
Complying with regulatory requirements
1/
,7. Support Function: Internal Audit Risk identification, assessment and treatment through
audit plans with focus on fraud, cor ruption,
regulatory noncompliance and/or mis representation
related to the organization's in ternal control systems,
financial operations, fi nancial statements and
reporting as well as enterprise risk and the
organization's risk man agement framework and
process.
8. What steps can the risk
management professional take to
Include risk assessment in planning process;
embed risk man agement in
Leverage crossfunctional risk assessment team and
decision mak ing?
subject matter experts to identify en terprise risks;
Consider cascading and cumula tive effects
9. Gap Analysis 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.
10. Risk appetite The total exposed amount that an organization
wishes to undertake on the basis of riskreturn
tradeoffs for one or more desire and expected
outcomes.
11. Communication and Con Risk management professional's role in Imple
sultation menting Risk Strategies
12. Support Function: Legal 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.
13. What are the typical fail ures in Program not integrated into strategy or its exe cution;
risk management which can be Focused on the wrong risks; Not execut ed in a
avoided if it repeatable process; Risk management
2/
, is embedded in the deci sion is practiced in a silo; Activity not viewed as being
making process? value added
14. Strategic Plan Determines that actions the organization will
take at any stage of the planning period as
circumstances change.
15. Risk owner The individual who is ultimately accountable for
ensuring that risk is managed appropriate ly,
including the implementation of selected re sponses.
16. Risk Identification Finding, Recognizing and Recording Risks
Process
Risk identification, assessment and treatment of risk
17. Support Function: Compli ance
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.
18. To successfully integrate risk
management into decision Building organizational awareness; . Differen tiating
making, risk management the different types of decisions used in varying
profession als will rely on situations using elements of decision quality;
strategies that draw on personal Performing various roles in the taking risk into
and technical skills in account in decisionmaking process
19. Strategy A complete plan of action for whatever situa tions
might arise in achieving an organization's goals within
the established time.
20. Risk tolerance 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.
3/
, 21. Strategic Risk Manage ment A business discipline that drives deliberation and
action regarding uncertainties and un tapped
opportunities that affect an organiza tion's strategy
and strategic execution.
22. Value Chain The series of functions, processes, materials and
activities (inputs) from concept to the even tual end
user that creates and builds value at every step in
order to deliver a product or ser vice.
23. To build organization al Be a persuasive communicator and facilitator; Have a
awareness, the risk clear communication plan; Engage in terested parties,
management professional needs including primary and sec ondary audiences;
to do the following: Demonstrate that risk man agement creates the most
value ; Develop feed back loops for continuous
learning
24. Risk Analysis The process of characterizing and understand
ing the nature of risk and of considering the level of
risk in the context of the organization's willingness to
accept risk.
25. Support Function: Safety Risk identification, assessment and treatment
of risks focused on preserving the physical
wellbeing of employees and third parties.
26. Likelihood, Conse quences, Risk is typically analyzed on the basis of
other criteria such as timing,
duration, vulnerability and
interde pendencies
27. Support Function: Infor mation Risk Identification, assessment and treatment of risk
Security arising our of or affecting information and technology
infrastructure.
4/
