RIMS - m
mCRMP Complete Study Guide; Questions and
m m m m m
m
Correct Answers (Detailed Answers)
Financial Statements
m m m m
Internalmsource mofminformationmthatmincludesmfinancialmanalyticsmormprojections
strategicmplanningmteam
The mriskmmanagermshouldmbe mampartmofmthe m
tomprovide mthe mstructur
e mdiscipline mformconsiderationmofmrisksminmamstrategicmportfolio.
InternalmAuditmReports
Internalmsource mofminformationmthatmfocusesmonmbusinessmpracticesmimportantmtomthemgoalsmandmrefle
ctionmofmregulatorymenvironmentmofmthe morganization
riskmmanagement
shouldmbe manmagendamitemmatmeverymstrategymsession.
SupportmFunction:mFacilities
Riskmidentification,massessmentmandmtreatmentmofmthemorganization'smproperties,mequipmentmandmph
ysicalminfrastructure msystems.
Simple mandmfrequent
Amtype mofmdecisionmthatmaremautomatic,mtakenminmthemmoment.mThese mdecisionsmgenerallymrelymonmthe mkn
owledge mandmcapabilitymofmthe mdecisionmmakermusingmthe mback-of-the-napkinmtechnique.
,Bowmtie manalysis
hazardmanalysismtechnique m(cause mandmconsequence)
Businessmimpactmanalysis
considermbusinessmimpactsmatmamlocationmormfrommamspecificmprocess
SupportmFunctions:mQuality
Riskmidentification,massessmentmandmtreatmentmofmrisksmrelatedmtomproductsmandmservices.
Significantmimportance mormcomplex
Amtype mofmdecisionmthatmrequire mmore mdeliberate meffort.mThesemdecisionsmgenerallymhave msomemperiodmof
m planningm andm am longerm decisionm timeline.
OrganizationalmStructure
Internalmsource mofminformationmthatmreportsmfrommdifferentmdepartmentsm(HR,mLegal,mrisk,moperation
s,mHS,menvironment,metc.)
Reviewmthe mexistingmstrategicmplan
The mfirstmstepmformthe mriskmmanagermismtom
tomidentifymandmunderstandmth
e morganization'smgoals.
keymperformance mindicators
,Eachmhigh-levelmstrategymobjective mshouldmbe mbrokenmdownmintommore mtactical,moperational
formanalysis.
ExternalmOrganizationmInformation
Externalmsource mofminformationmthatmincludesmexternalmauditmreports,mcompetitive manalysis,mratingma
gency,mconsumermreports,mlegalmmatters,mmediamcoverage
Strategicmimportance mandmcomplex
Amtype mofmdecisionmthatmcallmformformalmplanningmprocessmovermamlongermtimelineminmwhichmmultiplemri
skmmanagementmtechniquesmcanmbemapplied.mDecisionmqualitymelementsmshouldmbe membeddedminmthe
m process.m Due m tomthe mimportance m ofm themdecision,m biasesmshouldm be mformallym consideredmbymthe ment
ire mplanningmteam.
SupportmFunction:mProjectmManagement
Assessmandmidentifymprojectmrisks,mmitigate mthreatsmandmcapitalizemonmopportunitiesmthatmmymaffectmt
he msuccessmofmamspecificmproject.
Gapmanalysis
determine mstepsmtomimprove mthe morganization'smcapacitymtommovemfrommamcurrentmstatemtomamdesire
d,mfuture mstate.m(currentmavailablemfactors,msuccessmfactorsmneededmtomachievemfuturemdesiredmobject
ives,mhighlightingmthe mgaps)
Howmtomobtainmthe mrealmstorymaside mfrommreadingminformation?
Talkmtomthose minside mthe morganization;mTalkmwithmexternalmstakeholdersm;mDomsite mvisits
assumptions
, The mriskmmanagermcanmthenmidentifym
made mbymmanagementmwhenmdevelopingmthe
se mgoals.
RootmCause mAnalysis
multiple mtechniquesmdesignedmtomidentifymthemunderlyingmorminitiatingmriskmsourcesmormdrivers.m(faultm
tree manalysis,meventmtreemanalysis,mfailure mmodemandmeffectmanalysismandmcause-and-effectmanalysism-
m fishm bone m diagram)
Risks
The meffectmofmuncertaintymonmobjectives
The mchance mofmsomethingmhappeningmthatmwillmhave manmimpactmonmobjectives
Beingmpreparedmformthe mworstmandmbeingmpoisedmtomexploitmopportunitiesmasmtheymare mdiscovered
Enterprise mRiskmManagement
Amstrategicmbusinessmdisciplinemthatmsupportsmthemachievementmofmanmorganization'smobjective
smbymaddressingmthemfullmspectrummofmitsmrisksmandmmanagingmthemcombinedmimpactmofmthosem
risksmasmanminterrelatedmriskmportfolio.
SupportmFunction:mBusinessmcontinuitymandmcrisismmanagement
Riskmidentification,massessmentmandmcreationmofmemergencymresponsemandmrecoverymplansmrelatedmto
m threatsm orm hazardsm thatm mightm leadm tom operational m disruptions
Analysis
Amsystematicmexaminationmandmevaluationmofmdatamorminformationmbymbreakingmitmintomitsmcompo
nentmpartsmtomuncovermtheirmrelationships.mAnmexaminationmofmdatamandmfactsmtomuncovermandmu
nderstandmcause-
effectmrelationships,mthusmprovidingmbasismformproblemmsolvingmandmdecisionmmaking.
mCRMP Complete Study Guide; Questions and
m m m m m
m
Correct Answers (Detailed Answers)
Financial Statements
m m m m
Internalmsource mofminformationmthatmincludesmfinancialmanalyticsmormprojections
strategicmplanningmteam
The mriskmmanagermshouldmbe mampartmofmthe m
tomprovide mthe mstructur
e mdiscipline mformconsiderationmofmrisksminmamstrategicmportfolio.
InternalmAuditmReports
Internalmsource mofminformationmthatmfocusesmonmbusinessmpracticesmimportantmtomthemgoalsmandmrefle
ctionmofmregulatorymenvironmentmofmthe morganization
riskmmanagement
shouldmbe manmagendamitemmatmeverymstrategymsession.
SupportmFunction:mFacilities
Riskmidentification,massessmentmandmtreatmentmofmthemorganization'smproperties,mequipmentmandmph
ysicalminfrastructure msystems.
Simple mandmfrequent
Amtype mofmdecisionmthatmaremautomatic,mtakenminmthemmoment.mThese mdecisionsmgenerallymrelymonmthe mkn
owledge mandmcapabilitymofmthe mdecisionmmakermusingmthe mback-of-the-napkinmtechnique.
,Bowmtie manalysis
hazardmanalysismtechnique m(cause mandmconsequence)
Businessmimpactmanalysis
considermbusinessmimpactsmatmamlocationmormfrommamspecificmprocess
SupportmFunctions:mQuality
Riskmidentification,massessmentmandmtreatmentmofmrisksmrelatedmtomproductsmandmservices.
Significantmimportance mormcomplex
Amtype mofmdecisionmthatmrequire mmore mdeliberate meffort.mThesemdecisionsmgenerallymhave msomemperiodmof
m planningm andm am longerm decisionm timeline.
OrganizationalmStructure
Internalmsource mofminformationmthatmreportsmfrommdifferentmdepartmentsm(HR,mLegal,mrisk,moperation
s,mHS,menvironment,metc.)
Reviewmthe mexistingmstrategicmplan
The mfirstmstepmformthe mriskmmanagermismtom
tomidentifymandmunderstandmth
e morganization'smgoals.
keymperformance mindicators
,Eachmhigh-levelmstrategymobjective mshouldmbe mbrokenmdownmintommore mtactical,moperational
formanalysis.
ExternalmOrganizationmInformation
Externalmsource mofminformationmthatmincludesmexternalmauditmreports,mcompetitive manalysis,mratingma
gency,mconsumermreports,mlegalmmatters,mmediamcoverage
Strategicmimportance mandmcomplex
Amtype mofmdecisionmthatmcallmformformalmplanningmprocessmovermamlongermtimelineminmwhichmmultiplemri
skmmanagementmtechniquesmcanmbemapplied.mDecisionmqualitymelementsmshouldmbe membeddedminmthe
m process.m Due m tomthe mimportance m ofm themdecision,m biasesmshouldm be mformallym consideredmbymthe ment
ire mplanningmteam.
SupportmFunction:mProjectmManagement
Assessmandmidentifymprojectmrisks,mmitigate mthreatsmandmcapitalizemonmopportunitiesmthatmmymaffectmt
he msuccessmofmamspecificmproject.
Gapmanalysis
determine mstepsmtomimprove mthe morganization'smcapacitymtommovemfrommamcurrentmstatemtomamdesire
d,mfuture mstate.m(currentmavailablemfactors,msuccessmfactorsmneededmtomachievemfuturemdesiredmobject
ives,mhighlightingmthe mgaps)
Howmtomobtainmthe mrealmstorymaside mfrommreadingminformation?
Talkmtomthose minside mthe morganization;mTalkmwithmexternalmstakeholdersm;mDomsite mvisits
assumptions
, The mriskmmanagermcanmthenmidentifym
made mbymmanagementmwhenmdevelopingmthe
se mgoals.
RootmCause mAnalysis
multiple mtechniquesmdesignedmtomidentifymthemunderlyingmorminitiatingmriskmsourcesmormdrivers.m(faultm
tree manalysis,meventmtreemanalysis,mfailure mmodemandmeffectmanalysismandmcause-and-effectmanalysism-
m fishm bone m diagram)
Risks
The meffectmofmuncertaintymonmobjectives
The mchance mofmsomethingmhappeningmthatmwillmhave manmimpactmonmobjectives
Beingmpreparedmformthe mworstmandmbeingmpoisedmtomexploitmopportunitiesmasmtheymare mdiscovered
Enterprise mRiskmManagement
Amstrategicmbusinessmdisciplinemthatmsupportsmthemachievementmofmanmorganization'smobjective
smbymaddressingmthemfullmspectrummofmitsmrisksmandmmanagingmthemcombinedmimpactmofmthosem
risksmasmanminterrelatedmriskmportfolio.
SupportmFunction:mBusinessmcontinuitymandmcrisismmanagement
Riskmidentification,massessmentmandmcreationmofmemergencymresponsemandmrecoverymplansmrelatedmto
m threatsm orm hazardsm thatm mightm leadm tom operational m disruptions
Analysis
Amsystematicmexaminationmandmevaluationmofmdatamorminformationmbymbreakingmitmintomitsmcompo
nentmpartsmtomuncovermtheirmrelationships.mAnmexaminationmofmdatamandmfactsmtomuncovermandmu
nderstandmcause-
effectmrelationships,mthusmprovidingmbasismformproblemmsolvingmandmdecisionmmaking.
