RIMS - CRMP Complete Study Guide 100% Elaborated graded +
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Course
RIMS - CRMP
Institution
RIMS - CRMP
Risks - Answer- 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
Enterprise Risk Management - Answer- A strategic business discipline th...
RIMS - CRMP Complete Study Guide 100% Elaborated
graded +
Analyze the Business Model
Developing Organizational Risk Strategies
RIMS CRMP-Implementing the Risk Process
Developing Organizational Risk Management Competency
Supporting Decision Making
Risks - Answer- 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
Enterprise Risk Management - Answer- 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 risk portfolio.
Support Function: Business continuity and crisis management - Answer- Risk identification, assessment
and creation of emergency response and recovery plans related to threats or hazards that might lead to
operational disruptions
Analysis - Answer- A systematic examination and evaluation of data or information by breaking it into its
component parts to uncover their relationships. An examination of data and facts to uncover and
understand cause-effect relationships, thus providing basis for problem solving and decision making.
To embed risk management in both routine and strategic decision, what should managers be able to
recognize? - Answer- The type of decision being made; Who should be included in the decision making
process; Where in the process decisions are being made
Risk management strategies' general focus - Answer- Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
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- The system of rules, practices and processes 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
those risks as an interrelated risk portfolio.
Gap Analysis - Answer- Comparison of an existing process or procedure to recognize standards in order
to identify deficiencies or excesses in the existing process.
Key performance indicator (KPI) - Answer- As activity that signals the achievement of organizational
objectives, emphasize opportunities and strategic objectives.
Support Function: Internal Audit - Answer- Risk identification, assessment and treatment through audit
plans with focus on fraud, corruption, regulatory noncompliance and/or misrepresentation related to the
organization's internal control systems, financial operations, financial statements and reporting as well as
enterprise risk and the organization's risk management framework and process.
What steps can the risk management professional take to embed risk management in decision making? -
Answer- Include risk assessment in planning process; Leverage cross-functional risk assessment team and
subject matter experts to identify enterprise risks; Consider cascading and cumulative effects
Gap Analysis - Answer- 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.
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 desire and expected outcomes.
Communication and Consultation - Answer- Risk management professional's role in Implementing Risk
Strategies
Support Function: Legal - Answer- 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.
,What are the typical failures in risk management which can be avoided if it is embedded in the decision
making process? - Answer- Program not integrated into strategy or its execution; Focused on the wrong
risks; Not executed in a repeatable process; Risk management is practiced in a silo; Activity not viewed
as being value added
Strategic Plan - Answer- Determines that actions the organization will take at any stage of the planning
period as circumstances change.
Risk owner - Answer- The individual who is ultimately accountable for ensuring that risk is managed
appropriately, including the implementation of selected responses.
Risk Identification Process - Answer- Finding, Recognizing and Recording Risks
Support Function: Compliance - Answer- Risk identification, assessment and treatment of risk 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.
To successfully integrate risk management into decision making, risk management professionals will rely
on strategies that draw on personal and technical skills in - Answer- Building organizational awareness; .
Differentiating the different types of decisions used in varying situations using elements of decision
quality; Performing various roles in the taking risk into account in decision-making process
Strategy - Answer- A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time.
Risk tolerance - Answer- 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.
Key risk indicator (KRI) - Answer- designed to manage downside risk. A measurement of how risk and
volatility relate to achieving organizational objectives,
PESTLE Analysis - Answer- PESTLE is an acronym for Political, Economic, Social, Technology, Legal
and Environmental and identifies the categories utilized to analyze internal and external environments.
Other forms of the acronym include "PEST" and "PESTEL."
, Risk - Answer- The effect of uncertainty on objectives.
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
Risk Attitude - Answer- An organization's or individuals' view/perspective 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 organization that determine the way in which they identify, understand, discuss and act on the
risk(s) the organization confronts and takes.
Risk Champion - Answer- Any person in an organization who is a leader and influences peers regarding
the value that risk management adds to the organization.
Strategic Risk Management - Answer- A business discipline that drives deliberation and action regarding
uncertainties and untapped opportunities that affect an organization's strategy and strategic execution.
Value Chain - Answer- The series of functions, processes, materials and activities (inputs) from concept
to the eventual end user that creates and builds value at every step in order to deliver a product or service.
To build organizational awareness, the risk management professional needs to do the following: -
Answer- Be a persuasive communicator and facilitator; Have a clear communication plan; Engage
interested parties, including primary and secondary audiences; Demonstrate that risk management creates
the most value ; Develop feedback loops for continuous learning
Risk Analysis - Answer- The process of characterizing and understanding the nature of risk and of
considering the level of risk in the context of the organization's willingness to accept risk.
Support Function: Safety - Answer- Risk identification, assessment and treatment of risks focused on
preserving the physical well-being of employees and third parties.
Likelihood, Consequences, other criteria such as timing, duration, vulnerability and interdependencies -
Answer- Risk is typically analyzed on the basis of
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