RIMS - CRMP Complete Study Guide with Complete Solutions
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Course
RIMS - CRMP
Institution
RIMS - CRMP
RIMS - CRMP Complete Study Guide with Complete Solutions
Risks
Enterprise Risk Management
Support Function: Business continuity
and crisis management
Analysis
To embed risk management in both rou-
tine and strategic decision, what should
managers be able to recognize?
Risk management strat...
RIMS - CRMP Complete Study Guide with Complete Solutions
The effect of uncertainty on objectives
The chance of something happening that
will have an impact on objectives
Risks
Being prepared for the worst and being
poised to exploit opportunities as they
are discovered
A strategic business discipline that sup-
ports the achievement of an organiza-
tion's objectives by addressing the full
Enterprise Risk Management
spectrum of its risks and managing the
combined impact of those risks as an
interrelated risk portfolio.
Risk identification, assessment and cre-
Support Function: Business continuity ation of emergency response and recov-
and crisis management ery plans related to threats or hazards
that might lead to operational disruptions
A systematic examination and evalua-
tion of data or information by break-
ing it into its component parts to un-
cover their relationships. An examination
Analysis
of data and facts to uncover and un-
derstand cause-effect relationships, thus
providing basis for problem solving and
decision making.
The type of decision being made; Who
To embed risk management in both rou-
should be included in the decision mak-
tine and strategic decision, what should
ing process; Where in the process deci-
managers be able to recognize?
sions are being made
Meeting or exceeding an organization's
objectives
Risk management strategies' general fo-
Adhering to control-based objectives,
cus
rules and/or controls
Complying with regulatory requirements
Risk identification, assessment and
treatment through audit plans with focus
on fraud, corruption, regulatory noncom-
pliance and/or misrepresentation relat-
,RIMS - CRMP Complete Study Guide with Complete Solutions
ed to the organization's internal control
systems, financial operations, financial
Support Function: Internal Audit statements and reporting as well as en-
terprise risk and the organization's risk
management framework and process.
Include risk assessment in planning
What steps can the risk management process; Leverage cross-functional risk
professional take to embed risk manage- assessment team and subject matter ex-
ment in decision making? perts to identify enterprise risks; Consid-
er cascading and cumulative effects
Technique that can be used to determine
what steps might need to be taken to
Gap Analysis improve the organization's capacity to
move from a current state to a desired
future state.
The total exposed amount that an organi-
zation wishes to undertake on the basis
Risk appetite
of risk-return trade-offs for one or more
desire and expected outcomes.
Risk management professional's role in
Communication and Consultation
Implementing Risk Strategies
Risk identification, assessment and
treatment of risks related to the oblig-
ation an organization undertakes and
Support Function: Legal
transfers through contracting, as well as
its compliance with applicable laws and
regulatory obligations.
Program not integrated into strategy or
its execution; Focused on the wrong
What are the typical failures in risk man-
risks; Not executed in a repeatable
agement which can be avoided if it is em-
process; Risk management is practiced
bedded in the decision making process?
in a silo; Activity not viewed as being
value added
Determines that actions the organization
Strategic Plan will take at any stage of the planning
period as circumstances change.
,RIMS - CRMP Complete Study Guide with Complete Solutions
The individual who is ultimately account-
able for ensuring that risk is managed ap-
Risk owner
propriately, including the implementation
of selected responses.
Finding, Recognizing and Recording
Risk Identification Process
Risks
Risk identification, assessment and
treatment of risk related to regulations
that may affect the organization's ability
Support Function: Compliance
to operate in its respective jurisdictions,
as well as activities that fall within its
compliance and ethics programs.
Building organizational awareness; . Dif-
To successfully integrate risk manage-
ferentiating the different types of deci-
ment into decision making, risk manage-
sions used in varying situations using
ment professionals will rely on strategies
elements of decision quality; Performing
that draw on personal and technical skills
various roles in the taking risk into ac-
in
count in decision-making process
A complete plan of action for whatever
situations might arise in achieving an or-
Strategy
ganization's goals within the established
time.
The amount of uncertainty an organiza-
tion is prepared to accept in total or more
Risk tolerance narrowly within a certain business unit, a
particular risk category or for a specific
initiative.
A business discipline that drives deliber-
ation and action regarding uncertainties
Strategic Risk Management and untapped opportunities that affect
an organization's strategy and strategic
execution.
The series of functions, processes, ma-
Value Chain terials and activities (inputs) from con-
cept to the eventual end user that creates
, RIMS - CRMP Complete Study Guide with Complete Solutions
and builds value at every step in order to
deliver a product or service.
Be a persuasive communicator and facil-
itator; Have a clear communication plan;
To build organizational awareness, the Engage interested parties, including pri-
risk management professional needs to mary and secondary audiences; Demon-
do the following: strate that risk management creates the
most value ; Develop feedback loops for
continuous learning
The process of characterizing and un-
derstanding the nature of risk and of con-
Risk Analysis sidering the level of risk in the context of
the organization's willingness to accept
risk.
Risk identification, assessment and
treatment of risks focused on preserving
Support Function: Safety
the physical well-being of employees and
third parties.
Likelihood, Consequences, other crite-
ria such as timing, duration, vulnerability Risk is typically analyzed on the basis of
and interdependencies
Risk Identification, assessment and
treatment of risk arising our of or af-
Support Function: Information Security
fecting information and technology infra-
structure.
To build organizational awareness, risk Risk management Aligns with strategic
management creates the most value goals; Takes corporate culture into ac-
when count; Involves key enterprise functions
Internal source of information that in-
Financial Statements
cludes financial analytics or projections
The risk manager should be a part of the
to provide
strategic planning team
the structure discipline for consideration
of risks in a strategic portfolio.
Internal source of information that focus-
es on business practices important to the
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