RIMS CRMP Exam Study Guide Common
Terms Already Graded A+
Benchmarking - Answer ️️ -The process of measuring the performance of an organization
against external standards of reference that frequently come from similar organizations doing
similar things.
Corporate governance - Answer ️️...
RIMS CRMP Exam Study Guide Common Terms Already Graded A+ Benchmarking - Answ er ✔️✔️-The process of measuring the performance of an organization against external standards of reference that frequently come from similar organizations doing similar things. Corporate governance - Answer ✔️✔️-The system of rules, practices and processe s by which a company is directed and controlled Enterprise risk management - Answer ✔️✔️-A strategic discipline that supports the achievement of an organization's objectives by addressing the full spectrum of its risk and managing the combined impact of th ose risks as an interrelated risk portfolio. Strategy: Consider all risks and exploit risks as part of strategy Measurement: Include Upside of Risk (Bugalla and Kugler) Look at building, expanding, exploiting to add value Push and Pull risk performance d ata This approach is Coordinated & Strategic Gap analysis - Answer ✔️✔️-Comparison of an existing process or procedure to recognized standards in order to identify deficiencies or excesses in the existing process. 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. Key performance indicator (KPI) - Answer ✔️✔️-An activity that signals the achievement of organizational objectives Key risk in dicator (KRI) - Answer ✔️✔️-A measurement of how risk and volatility relate to achieving organizational objectives Designed to manage the downside of risk Leading indicators of risk to business performance; giving early warning of potential risk early signal of changes in risk exposures in various areas of the enterprise Risk Metrics - Answer ✔️✔️-Integrated into the performance objectives of the organization for monitoring risks Examples: KPIs and KRIs Indemnification - Answer ✔️✔️-Contractual o bligation placed on the indemnifier to return the indemnified to essentially the same financial condition that existed prior to the loss or claim, to stand in as the source for financing the legal liability Contractual Risk Transfer - Answer ✔️✔️-A legally binding agreement between two parties whereby one agrees to indemnify and hold another party harmless for specified actions, inactions, injuries or damages Hold Harmless - Answer ✔️✔️-wording that requires one party to shield the other party from the effects of the legal liability assignable to transfer or obligor Risk Transfer/Sharing - Answer ✔️✔️-Action taken when 1) costs of retaining risks exceeds the organization's risk tolerance; 2) risks (or some portion) can be transferred at a lower cost; 3) risk s should be apportioned based on an agreement, and 4) it is required by regulation Insurance - Answer ✔️✔️-Risk-transfer mechanism that ensured full or partial financial compensation for the loss, damage and legal obligations of a policyholder or beneficia ry PESTLE analysis - Answer ✔️✔️-Political, Economic, Social, Technological, Legal and Environmental and identifies the categories utilized to analyze internal and external environments. Risk - Answer ✔️✔️-The effect of uncertainty on objectives Chance of Something happening that has an impact on objectives Being prepared for the worst and being poised to exploit opportunities as discovered 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 desired and expected outcomes how much risk the company will take on linked to rewards (risk -return trade -offs) express qualitatively or quantitively Risk attitude - Answer ✔️✔️-An organization's or individuals' view/persp ective of the perceived qualitative and quantitative value that may be gained in comparison to the related potential loss or losses. Risk culture - Answer ✔️✔️-The beliefs, values, norms and traditions of behavior of individuals and groups within an organi zation that determine the way in which they identify, understand, discuss and act on the risk(s) the organization confronts and takes.
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