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RIMS CRMP-Implementing the Risk Process
1. Risks: 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
2. Risk management strategies' general focus: Meeting or exceeding an organi-
zation's objectives Adhering to control-based objectives, rules and/or controls Complying with regulatory requirements
3. Communication and Consultation: Risk management professional's role in
Implementing Risk Strategies
4. Risk Identification Process: Finding, Recognizing and Recording Risks
5. Risk Analysis: 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.
6. Likelihood, Consequences, other criteria such as timing, duration, vulnera- bility and
interdependencies: Risk is typically analyzed on the basis of
7. Bow tie analysis: hazard analysis technique (cause and consequence)
8. Business impact analysis: consider business impacts at a location or from a
specific process
9. Gap analysis: determine steps to improve the organization's capacity to move
from a current state to a desired, future state. (current available factors, success factors needed to achieve future desired objectives, highlighting the gaps)
10. Root Cause Analysis: multiple techniques designed to identify the underlying
or initiating risk sources or drivers. (fault tree analysis, event tree analysis, failure mode and effect analysis and cause-and-effect analysis - fish bone diagram)
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11. Influence analysis/diagrams: identify the strength of influencing factors and
help determine potential weighting for consideration during the risk assessment process. Define root causes for major risks, define the chain of events likely in a scenario and become the foundation for further modeling.
12. Risk Register Analysis: compile risk into a risk register to analyze and manage
those risks in an organized way, typically by category.
13. Scenario analysis: process of analyzing possible and plausible future events by
considering alternative settings, circumstances and outcomes. It provides a basis for making decisions in the context of different conditions.
14. Site analysis: leaders at each site perform an assessment by analyzing and
evaluating the potential risks based on what is being produced at the site and its environmental factors. This may include threat, vulnerability and criticality analyses.
15. SWOT analysis: strengths and weaknesses (internal), opportunities and threats
(external)
16. Monte Carlo analysis: mathematical technique that generates random vari-
ables for modelling risk or uncertainty of a certain system (simulation). The random variables or inputs are modelled on the basis of probability distributions
17. Stress analysis: a form of simulation used to determine reactions to different
situations. Also used to gauge how certain stressors will affect a company or industry.
18. Influence diagrams, scenario analysis, site analysis, SWOT: Examples of
qualitative methodology for analyzing data
19. Bowtie, business impact analysis, fault tree, cause/consequence analysis-
: Examples of combined methodology for analyzing data
20. Monte Carlo, stress analysis: Examples of quantitative methodology for ana-
lyzing data
4 / Strategic advisors Solutions advocates Collaboration facilitators
31. Risk Monitoring: Observe
Check the progress or quality of something over a period of time Keep under systematic review
32. Prioritize risks to be monitored: In monitoring risks, what should be done to
identify the greatest potential for disrupting or accelerating performance?
33. Risk metrics (key risk indicators): In monitoring risks, what should be integrat- ed
into the performance objectives of the organization?
34. Reviews of the risk treatment plans: In monitoring risks, what should be
scheduled as an ongoing agenda item in the responsible leader's staff agenda?
35. Key performance indicators (KPI): help a firm see how it is performing in
relation to its strategic goals and objectives.
36. Key risk indicators (KRI): are leading indicators of risk to business perfor-
mance, giving early warning about potential risks.
37. Progress reports: What should be monitored in terms of significant risks and
use of risk process?
38. Leader: Risk management professional's role is to drive adoption of enter-
prise-wide approach to enable the organization to achieve its objectives; develop awareness for broad risk management competencies; enable execution of consis- tent risk assessment methodologies, guiding improvement and monitoring efforts.
39. Catalyst: Risk management professional's role is to provide insights on emerg-
ing risks and offer perspectives on leading practices; share knowledge on potential exposures and the implications to the organization.
40. In facilitating risk identification, risk management professional servers as: Data
5 / consolidator to aggregate and synthesize data that enable people within an organization to make risk-effective decisions.
41. Profitability and value: A benefit of ERM that provides improved profitability,
increased shareholder value, reduced financial volatility
42. Cross-functional view and common risk assessment process: An ERM method
which can maximize the efficiency of an organization's risk management resources and activities
43. Unmanaged risk: greatest source of waste in business and economy and can
have a damaging effect on companies, employees and communities where the business operates.
44. Risks viewed as an interrelated portfolio: Coordinated and strategic ap-
proach of risk management
7 / gap between potential and actual risk.
54. RMM attribute: Root cause discipline: RMM attribute: This attribute assesses the
extent to which an organization identifies risk by source, or root cause, versus the symptoms and outcomes they produce. Focusing on the root cause of a risk and classifying them accordingly, will strength response and mitigation efforts.
55. RMM attribute: Uncovering risks: RMM attribute: This attribute measures the
quality and coverage of your risk assessments. It examines the method of collecting risk information, the risk assessment process and whether enterprise- wide trends and correlations can be uncovered from the risk information.
56. RMM attribute: Performance management: RMM attribute: This attribute de-
termines the degree to which an organization executes on its visions and strategy. It evaluates the strength in planning, communicating and measuring core enterprise goals with a risk-based process, and the extent to which progress deviates from expectations.
57. RMM attribute: Business resiliency and sustainability: RMM attribute: This
attribute evaluates the extent to which business continuity, operational planning and other sustainability activities are approached with a risk-based methodology.
58. Communication: Risk Management Professional's role to convey information.
59. Consultation: Risk Management Professional's role to anticipate that partici-
pants engage in conversation with the expectation that dialogue will contribute to and shape decisions.
60. Engage Key Stakeholders: A step in identifying risk whereby considering those
most closely associated with achieving the organization's objectives.
61. Identify and gather available data: A step in identifying risk whereby the
purpose is to identify what might happen or what situations might exist that may affect the achievement of the organization's strategy, objectives and tactical plans.
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62. Data collection: A strategy for gathering data to identify a risk that should be
comprehensive, strategic and timely
63. Surveys, interviews and focus groups: Methodologies used for gathering data to
identify a risk
64. Benchmarking, document review, assets and process reviews: A strategy for
gathering data to identify a risk involving external resources
65. Existing capabilities: A strategy for gathering data to identify a risk that in-
cludes understanding current risk management processes and approaches, existing controls and their levels of effectiveness to identify known risks
66. Progress report should include these issues in the normal business: Ma- terial
risk target outcome; Specific activities that have taken place since the last report; Challenges in executing the risk treatment plan; A trend assessment in the risk profile against the targeted outcome
67. When creating reports and presentations, the following must be con- sidered:
Understand the audience; Understand the purpose; Type and detail of information; Insights and recommendations
68. In what areas and activities can risk management professional give ad- vise?:
Strategy development and performance; Enterprise-wide or related areas, whether internal or external; Specific operational and functional areas; Development of new initiatives; New and evolving issues; Significant changes
69. What is the process of giving advice?: Evaluate metrics and reports; Gain
insights into organizational performance; Validate insights with key stakeholders; Develop recommendations; Communicate recommendations
70. An enterprise-wide risk management framework views risk within an orga-
nization's:: Unique strategy; Tolerance; Culture; Decision Making; Governance
71. Risk Categorization: helps assign accountability, allocate resources, and en-
sure that the risk reports are more easily understood by top management
10 / and resources to implement solutions: Who can best find, chose and implement effective risk solutions?
84. Treatment plans should be integrated to the:: management plans and
processes of the organization
85. rationale; benefits: Elements of treatment plans: the for the
selec- tion of the treatment plans; including the expected to be gained
86. approving and implementing the plan: Elements of treatment plans: those who
are accountable and responsible for
87. actions: Elements of treatment plans: proposed and timeline
88. constraints and contingencies: Elements of treatment plans: resources re-
quired including
89. performance measures: Elements of treatment plans: the
that validate that the solutions are working as planned
90. reporting and monitoring: Elements of treatment plans: the required
of risks as part of normal business activity and reporting
91. Accountability for risk: this matters when it is measured and can achieve a
trickle down effect as the operations and functional managers engage their staff to support in the achieving the objectives
92. What should be evaluated that may dramatically impact the organization's strategic
goals?: effect of significant acquisitions, organizational and process changes, other changes
93. How can risk management professionals gain insights into organizational
performance related to the effectiveness of the organizational risk manage- ment?: evaluating metrics and reports that result from a disciplined and informed risk management process
94. How can risk management professionals gain credibility and engagement with key
stakeholders: validating insights with key stakeholders
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95. priorities: Monitoring risk process: setting based on desire perfor-
mance
96. performance objectives: Monitoring risk process: developing risk metrics inte-
grated with
97. monitoring schedules: Monitoring risk process: Establishing
to check progress over time
98. expected value of the of the collective objectives: Monitoring risk process:
validating whether the from making risk-informed decisions and implementing risk solutions have been achieved
