RIMS-CRMP Exam Study Guide: Mastering Risk Management Concepts, Study Guides, Projects, Research of Business Administration

Download RIMS-CRMP Exam Study Guide: Mastering Risk Management Concepts and more Study Guides, Projects, Research Business Administration in PDF only on Docsity!

RIMS-CRMP EXAM STUDY GUIDE QUESTIONS

AND ANSWERS 2024/

Benchmarking 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 The system of rules, practices and processes by which a company is directed and controlled. Enterprise Risk Management 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 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) As activity that signals the achievement of organizational objectives, emphasize opportunities and strategic objectives. Key risk indicator (KRI) designed to manage downside risk. A measurement of how risk and volatility relate to achieving organizational objectives, PESTLE Analysis 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 The effect of uncertainty on objectives. Risk Appetite 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 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

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 Any person in an organization who is a leader and influences peers regarding the value that risk management adds to the organization. Risk governance The architecture within which risk management operates in a company Risk Management The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization. Risk Owner An individual accountable for the identification, assessment, treatment and monitoring of risks in a specific environment Risk Portfolio A complete collection and range of uncertainties that affect an organization's future. Risk Tolerance The amount of uncertainty an organization is prepared to accept in total or more narrowly within a certain business unit, a particular category or for a specific initiative. Root Cause A factor that, if removed from a chain of events, causes a problem to not occur or lessens the impact of a problem. Root Cause Analysis A problem-solving methodology used to find the root causes of problem Strategic risk management (SRM) A business discipline that drives deliberation and action regarding uncertainties and untapped opportunities that affect an organization's strategy and strategy execution. SWOT analysis SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats and is an analytical approach for environmental scanning that combines internal and external context with obstacles and accelerators to success in achieving objectives. SMART goals SMART is an acronym for Simple, Measurable, Achievable, Realistic and Timely and refers to characteristics of high quality goals and objectives. Value Chain A high-level model developed by Michael Porter used to describe the process by which businesses receive raw materials, add value to the raw materials through various processes to create a finished

product, and then sell that end product to customers. Companies conduct value-chain analysis by looking at every production step required to create a product and identifying ways to increase the efficiency of the chain. The overall goal is to deliver maximum value for the least possible total cost and create a competitive advantage. A business model is a set of assumptions about the way an organization creates value What two analytical tools are particularly useful in analytical tools for analyzing the business model? Value chain analysis and benchmarking Risk Management professional conduct supply-chain analysis to identify potential vulnerabilities to the organization Which activity does the risk management professional perform immediately after obtaining internal and external information about the organization? Organize the information The organization's resources and internal support are__________________ the risk management strategy inputs in the development of When defining the success measures for the organization's risk strategy, the risk management professional will include which of the following steps? A review of the goals and objectives of the risk strategy Which of the following is considered a risk analysis technique? Monte Carlo Simulation When an operational area develops a treatment for a critical risk, the risk management professional MUST evaluate the impact upon other areas A risk management professional advises management on the status of key risks by providing insights into the changing characteristics of a risk After validating the training curricula, a risk management professional schedules and conducts training. What is the role of risk management in the strategic planning process identify threats and opportunities.