Certified Risk Manager Principles Exam 2024/2025 with 100% correct answers
1 view 0 purchase
Course
Certified Risk Manager Principles E
Institution
Certified Risk Manager Principles E
Define Risk (4 definitions) correct answers1. Risk is chance or probability of loss
2. Risk is uncertainty concerning loss
3. Risk is the difference between expected losses and actual losses
4. A possibility of variation of outcomes from a given set of circumstances
Define Pure Risk correct a...
Define Risk (4 definitions) correct answers1. Risk is chance or probability of loss
2. Risk is uncertainty concerning loss
3. Risk is the difference between expected losses and actual losses
4. A possibility of variation of outcomes from a given set of circumstances
Define Pure Risk correct answersthere is only a chance for loss or no loss
Define Speculative Risk correct answersThere is a chance of loss, no loss, as well as a chance of gain
Define an exposure correct answersA situation, practice or condition that may lead to an adverse
financial consequence
Define a hazard correct answersa condition or circumstance that may give rise to a loss from a given peril
Define a peril, and give an example of one correct answersthe cause of a loss, ex: fire, wind, hail, slip and
fall
Define an incident correct answersAn unplanned event that disrupts normal activities and may become a
loss, claim, or business interruption
Define an accident correct answersAn unplanned event definite as to time and place that results in injury
or damage to person or property
Define an occurrence correct answersan accident with the limitation of time removed; an accident that
is extended over a period of time rather than a single observable happening
Define a claim correct answersa demand or obligation for payment as a result of a loss
, Define frequency correct answersthe number of losses occurring in a given time period
Define severity correct answersthe dollar amount of a given loss or the aggregate dollar amount of all
losses for a given period
Define expected losses correct answersprojection of the frequency and/or severity of losses based on
loss history, probability distributions, and statistics
Define Total Cost of Risk (TCOR) correct answersComprised of all costs related to an organization's risk
management program including those that fund losses, or fund the implementation and monitoring of
the risk management process
TCOR = insurance cost + retained losses + risk management department costs + outside service fees +
indirect costs
Explain the impacts of an effective risk management program on an organization correct answers1.
Protects the organization's reputation and brand
2. Increased Profitability
3.Raises awareness of the importance of Risk management
4. Supports managerial objectives
5. Improves morale and objectivity
6. Improves quality processes and technology
Define Traditional Risk Management (TRM) and Enterprise Risk Management (ERM) correct answersTRM
- functional, siloed view of risks affecting one or more areas of an organization, focuses on pure risk
ERM - cross functional view of risks affecting all areas of an organization, ERM embraces speculative risk
Describe the characteristics of Traditional Risk Management (TRM) correct answers1. Manages downside
risks only
2. siloed treatment of risk
3. risk identification and ownership is the risk manager's job
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 QUILLSKY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
