2024 | RIMS CRMP EXAM QUESTIONS WITH 100% CORRECT ANSWERS Risks Correct 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 Correct 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.
Risk owner Correct Answer: The individual who is ultimately accountable for ensuring that risk is
managed appropriately, including the implementation of selected responses.
Risk Identification Process Correct Answer: Finding, Recognizing and Recording Risks
Support Function: Compliance Correct 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 Correct 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 Correct Answer: A complete plan of action for whatever situations might arise in achieving an organization's goals within the established time.
Risk tolerance Correct 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. Strategic Risk Management Correct 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 Correct 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:
Correct 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 Correct 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 Correct 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 Correct Answer: Risk is typically analyzed on the basis of
Support Function: Information Security Correct Answer: Risk Identification, assessment and treatment of risk arising our of or affecting information and technology infrastructure.
Support Function: Business continuity and crisis management Correct Answer: Risk identification, assessment and creation of emergency response and recovery plans related to threats or hazards that might lead to operational disruptions
Analysis Correct 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? Correct 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 Correct Answer: Meeting or exceeding an organization's objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit Correct 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? Correct 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 Correct 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 Correct 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 Correct Answer: Risk management professional's role in Implementing Risk Strategies
Support Function: Legal Correct 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? Correct 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 Correct Answer: Determines that actions the organization will take at any stage of
the planning period as circumstances change.
To build organizational awareness, risk management creates the most value when Correct Answer: Risk management Aligns with strategic goals; Takes corporate culture into account; Involves key enterprise functions
Financial Statements Correct Answer: Internal source of information that includes financial analytics or projections
strategic planning team Correct Answer: The risk manager should be a part of the _______________________ to provide the structure discipline for consideration of risks in a strategic portfolio.
Internal Audit Reports Correct Answer: Internal source of information that focuses on business practices important to the goals and reflection of regulatory environment of the organization
risk management Correct Answer: __________________ should be an agenda item at every strategy session.
Support Function: Facilities Correct Answer: Risk identification, assessment and treatment of the organization's properties, equipment and physical infrastructure systems.
Simple and frequent Correct Answer: A type of decision that are automatic, taken in the moment. These decisions generally rely on the knowledge and capability of the decision maker using the back-of-the-napkin technique.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SavvyMind. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.98. You're not tied to anything after your purchase.
