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 EXAM 2024-2025 QUESTIONS AND ANSWERS 100 %
PASS SOLUTION A+ GRADE
What is important in risk committees? - answer>>Purpose and process must be established (committee
use and structure); Relationship between risk performance and the reward system
Risks - 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
Business area managers or risk owners - answer>>Participants in the ERM governance model who
engages in risk assessment at directed frequency; own risk treatment i.e. avoid, accept, transfer,
mitigate, exploit; report on risk exposures/actions
Collaboration in a more formal environment, such as a risk committee can provide what? - answer>>give
managers an open venue to share concerns and receive feedback from colleagues
Benefits of process improvement for stakeholders - answer>>Streamline risk management processes;
eliminate dupplication of efforts and connect support functions with process owners; measure risk
managemnt value, based on priorities; create a shreed language and vision
Profitability and value - answer>>A benefit of ERM that provides improved profitability, increased
shareholder value, reduced financial volatility
,Cross-functional view and common risk assessment process - answer>>An ERM method which can
maximize the efficiency of an organization's risk management resources and activities
Benefits of process improvement for organizations - answer>>tackle inadequately addressed
uncertainties and opportunities; resolve business processes inefficiencies; build a repeatable and
scalable process for better decision making.
What occurs during the "push" flow of information? - answer>>Risk management professionals have an
outlet to push out information to department leaders that might prompt them to reassess their business
processes or even identify new exposures
Core Competency: Technical Skills - answer>>Assessment methods & techniques; research; analytics;
financial analysis; risk modification; statistics; data interpretation; behavior modification; information
systems
Top Management - answer>>Participants in the ERM governance model who establishes risk
management policies/tolerances; review and reports significant risk issues; controls risk governance and
infrastructure
Unmanaged risk - answer>>greatest source of waste in business and economy and can have a damaging
effect on companies, employees and communities where the business operates.
Adoption of ERM-based approach - answer>>Comptency Drivers: Executive support of ERM; business
process definition and risk ownership, far-sighted risk management vision; front line and support
process owner participation
What occurs during the "pull" flow of information - answer>>Risk management professionals can pull
information about new developments and promote action plans that manage significant risks
,Governing Body/Board of Directors - answer>>Participants in the ERM governance model who is the
ultimate risk management oversight responsibility
Risk ownership - answer>>Essential to the successful implementation of an ERM program because it
places the responsibility, accountability and authority for volatile situations on those stakeholders
directly affected by risk.
ERM process management - answer>>Competency Drivers: Repeatable and scalability; ERM program
oversight ERM process steps; risk culture, accountability and communication, risk management
reporting
RIMS Risk Maturity Model (RMM) - answer>>A best practice framework for enterprise risk management.
Developed as an umbrella framework of the international, cross-industry standards, the RIMS RMM
allows organizations to measure how well their risk management efforts align with these best practices.
Risks viewed as an interrelated portfolio - answer>>Coordinated and strategic approach of risk
management
Risk management - answer>>strategic business discipline that supports the achievement of an
organization's objectives by addresssing the full spectrum of its risks and managing the combined impact
of those risks as an interrelated portfolio.
Developing risk governance model, is defining and ensuring the effectiveness of the process steps,
methods, tools and techniques for: - answer>>Risk identification; Risk assessment; Risk Measurement;
Risk Modification; Risk Modification
Risk Reporting; Risk data collection, storage and access protocols and procedures
, Clearly identified responsibility for risk management - answer>>A benefit of ERM that fosters an
environment where risk-return trade-offs are carefully evaluated; responsibility and accountability for
managing risks are explicit part of governance
Root cause discipline - answer>>Competency Drivers: Dependencies and consequences; Indicator
classifications; risk (uncertainties) and opportunity information collection; root cause consideration
commitment from leadership - answer>>Component in implementing enterprise risk plan: Obtain
__________________ of the organization for the purpose, scope and accountability, responsibility and
resources to implement the risk management strategy.
milestone/s - answer>>Component in implementing enterprise risk plan: Define major
_______________, accountable stakeholder owners and a timeline for each ____________
Uncovering risk - answer>>Competency Drivers: Formalized risk indicators and measures; adverse
(potential) outcomes as opportunities; follow-up reporting; risk ownership by business areas
Efficiency of risk management resources - answer>>A benefit of ERM that maximizes the efficiency of an
organization's risk management resources and activities through a cross-functional view and common
risk assessment process
Performance management - answer>>Compentency drivers: ERM information and planning;
communicating goals; ERM process goals and activities
governed and guided - answer>>Component in implementing enterprise risk plan: Define who and how
the plan will be _____________________
Emerging risks - answer>>Completely new or extremely rare negative events
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 dennohz2000. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
