RIMS CRMP Exam Study Guide | Common Terms ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
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Course
RIMS CRMP
Institution
RIMS CRMP
RIMS CRMP Exam Study Guide | Common Terms ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
1. Benchmarking
Answer: The process of measuring the performance of an organization against external
standards of reference that frequently come from similar organizations doing similar t...
1. 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.
2. Corporate governance
Answer: The system of rules, practices and processes by whicha company is directed and
controlled
3. Enterprise risk management
Answer: A strategic discipline that supports the achievement of an organization's objectives
by addressing the full spectrum of its risk andmanaging the combined impact of those 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 data
This approach is Coordinated & Strategic
4. Gap analysis
Answer: Comparison of an existing process or procedure to recognizedstandards 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 futurestate.
5. Key performance indicator (KPI)
Answer: An activity that signals the achievement oforganizational objectives
6. Key risk indicator (KRI)
Answer: A measurement of how risk and volatility relate toachieving organizational
objectives
Designed to manage the downside of risk
, Leading indicators of risk to business performance; giving early warning of potentialrisk
early signal of changes in risk exposures in various areas of the enterprise
7. Risk Metrics
Answer: Integrated into the performance objectives of the organization formonitoring risks
Examples: KPIs and KRIs
8. Indemnification
Answer: Contractual obligation placed on the indemnifier to return the indemnified to
essentially the same financial condition that existed prior to the lossor claim, to stand in as the
source for financing the legal liability
9. Contractual Risk Transfer
Answer: A legally binding agreement between two partieswhereby one agrees to indemnify
and hold another party harmless for specifiedactions, inactions, injuries or damages
10. Hold Harmless
Answer: wording that requires one party to shield the other party fromthe effects of the legal
liability assignable to transfer or obligor
11. Risk Transfer/Sharing
Answer: Action taken when 1) costs of retaining risks exceedsthe organization's risk
tolerance; 2) risks (or some portion) can be transferred at a lower cost; 3) risks should be
apportioned based on an agreement, and 4) it is required by regulation
12. Insurance
Answer: Risk-transfer mechanism that ensured full or partial financial compensation for the
loss, damage and legal obligations of a policyholder or beneficiary
13. PESTLE analysis
Answer: Political, Economic, Social, Technological, Legal and Environmental and identifies
the categories utilized to analyze internal and external environments.
14. 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
15. Risk appetite
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