RIMS - CRMP COMPLETE STUDY GUIDE; 1 ANALYZE THE BUSINESS
MODEL, 2 DEVELOPING ORGANIZATIONAL RISK STRATEGIES, 3
RIMS CRMP-IMPLEMENTING THE RISK PROCESS, 4 DEVELOPING
ORGANIZATIONAL RISK MANAGEMENT COMPETENCY, 5
SUPPORTING DECISION MAKING | COMPLETE SOLUTION RATED
A+
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
Enterprise Risk Management - 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 - Risk identification,
assessment and creation of emergency response and recovery plans related to threats
or hazards that might lead to operational disruptions
Analysis - 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? - 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 - Meeting or exceeding an organization's
objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit - 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? - 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 - 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 - 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 - Risk management professional's role in
Implementing Risk Strategies
Support Function: Legal - 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? - 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 - Determines that actions the organization will take at any stage of the
planning period as circumstances change.
Risk owner - The individual who is ultimately accountable for ensuring that risk is
managed appropriately, including the implementation of selected responses.
Risk Identification Process - Finding, Recognizing and Recording Risks
Support Function: Compliance - 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 -
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 - A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time.
, Risk tolerance - 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 - A business discipline that drives deliberation and action
regarding uncertainties and untapped opportunities that affect an organization's strategy
and strategic execution.
Value Chain - 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 profes
sional bneeds bto bdo bthe bfollowing: b- b bBe ba bpersuasive bcommunicator band bfacilitator;
bHave ba bclear bcommunication bplan; bEngage binterested bparties, bincluding bprimary band
Risk bAnalysis b- b bThe bprocess bof bcharacterizing band bunderstanding bthe bnature bof brisk
band bof bconsidering bthe blevel bof brisk bin bthe bcontext bof bthe borganization's bwillingness bto
baccept brisk.
Support bFunction: bSafety b- b bRisk bidentification, bassessment band btreatment bof brisks
bfocused bon bpreserving bthe bphysical bwell-being bof bemployees band bthird bparties.
Likelihood, bConsequences, bother bcriteria bsuch bas btiming, bduration, bvulnerability band
binterdependencies b- b bRisk bis btypically banalyzed bon bthe bbasis bof
Support bFunction: bInformation bSecurity b- b bRisk bIdentification, bassessment band
btreatment bof brisk barising bour bof bor baffecting binformation band btechnology binfrastructure.
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