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RIMS – CRMP LATEST EXAM STUDY GUIDE COMMON TERMS QUESTIONS AND 100% CORRECT ANSWERS | A+ GRADE
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RIMS – CRMP LATEST EXAM STUDY GUIDE COMMON TERMS QUESTIONS AND 100% CORRECT ANSWERS | A+ GRADE
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RIMS – CRMP LATEST EXAM STUDY GUIDECOMMON TERMS QUESTIONS AND 100% CORRECT
ANSWERS | A+ GRADE
Contractual Risk Transfer - ans -A legally binding agreement between two parties
whereby one agrees to indemnify and hold another party harmless for specified
actions, inactions, injuries or damages
Hold Harmless - ans -wording that requires one party to shield the other party
from the effects of the legal liability assignable to transfer or obligor
Risk Transfer/Sharing - ans -Action taken when 1) costs of retaining risks exceeds
the organization's risk tolerance; 2) risks (or some portion) can be transferred at a
lower cost; 3) risks should be apportioned based on an agreement, and 4) it is
required by regulation
Insurance - ans -Risk-transfer mechanism that ensured full or partial financial
compensation for the loss, damage and legal obligations of a policyholder or
beneficiary
PESTLE analysis - ans -Political, Economic, Social, Technological, Legal and
Environmental and identifies the categories utilized to analyze internal and
external environments.
Risk - ans -The effect of uncertainty on objectives
Chance of Something happening that has an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as
discovered
Risk appetite - ans -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
how much risk the company will take on
linked to rewards (risk-return trade-offs)
,express qualitatively or quantitively
Risk attitude - ans -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 - ans -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.
Risk champion - ans -Any person in an organization who is a leader and influences
peers regarding the value that risk management adds to the organization.
Risk governance - ans -The architecture within which risk management operates
in a company
Questions to consider when choosing a governance framework:
*Does a Standard/Framework already exist?
*How effective is the current paradigm?
*What are the gaps between the current and ideal state?
*Which Standard/Framework do key Stakeholders prefer?
Risk management - ans -The process of making and implementing decisions that
will minimize the adverse effects of accidental losses on an organization
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 - ans -An individual accountable for the identification, assessment,
treatment, and monitoring of risks in a specific environment
the individual who is ultimately accountable for ensuring that a risk/risks are
managed appropriately, including the implementation of selected responses.
, Risk portfolio - ans -A complete collection and range of uncertainties that affect
an organization's future.
Risk tolerance - ans -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
usually expressed in quantitative terms with specific minimum and maximum
risks that breach organization's risk tolerance should be escalated
Root cause - ans -A factor that, if removed from a chain of events, causes a
problem to not occur or lessens the impact of a problem.
Root cause analysis - ans -A problem-solving methodology used to find the root
causes of problems.
Include fault tree analysis, event tree analysis, failure mode and effect analysis,
and cause and effect analysis (fishbone)
Strategic risk management - ans -A business discipline that drives deliberation and
action regarding uncertainties and untapped opportunities that affect an
organization's strategy and strategy execution.
SWOT analysis - ans -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.
Can Identify risk related Obstacles ( threats and weaknesses) and Accelerators
(Strengths and Opportunities)
SMART goals - ans -Simple, Measurable, Achievable, Realistic and Timely and
refers to characteristics of high quality goals and objectives.
Value chain - ans -A high-level model developed by Michael Porter used to
describe the process by which businesses receive raw materials, add value to the
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