RIMS-CRMP Exam Study Guide: Key Concepts and Definitions, Exams of Credit and Risk Management

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RIMS-CRMP EXAM STUDY GUIDE

questions with correct answers

Benchmarking - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔The system of rules, practices and processes by which a company is directed and controlled. Enterprise Risk Management - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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) - CORRECT ANSWERS ✔✔As activity that signals the achievement of organizational objectives, emphasize opportunities and strategic objectives.

Key risk indicator (KRI) - CORRECT ANSWERS ✔✔designed to manage downside risk. A measurement of how risk and volatility relate to achieving organizational objectives, PESTLE Analysis - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔The effect of uncertainty on objectives. Risk Appetite - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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.

Root Cause Analysis - CORRECT ANSWERS ✔✔A problem- solving methodology used to find the root causes of problem Strategic risk management (SRM) - CORRECT ANSWERS ✔✔A business discipline that drives deliberation and action regarding uncertainties and untapped opportunities that affect an organization's strategy and strategy execution. SWOT analysis - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔SMART is an acronym for Simple, Measurable, Achievable, Realistic and Timely and refers to characteristics of high quality goals and objectives. Value Chain - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔way an organization creates value What two analytical tools are particularly useful in analytical tools for analyzing the business model? - CORRECT ANSWERS ✔✔Value chain analysis and benchmarking Risk Management professional conduct supply-chain analysis to identify - CORRECT ANSWERS ✔✔potential vulnerabilities to the organization Which activity does the risk management professional perform immediately after obtaining internal and external information about the organization? - CORRECT ANSWERS ✔✔Organize the information The organization's resources and internal support are__________________ the risk management strategy - CORRECT ANSWERS ✔✔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? - CORRECT ANSWERS ✔✔A review of the goals and objectives of the risk strategy Which of the following is considered a risk analysis technique? - CORRECT ANSWERS ✔✔Monte Carlo Simulation