RIMS-CRMP Vocab Definitions
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RIMS-CRMP Vocab Definitions
- Benchmarking
Answer: The process of measuring the performance of an organization against external standards of reference that frequently come from similar organizations doing similar things.
- Corporate Governance
Answer: The system of rules, practices, and processes by which a company is directed and controlled.
- Enterprise Risk Management
Answer: A strategic discipline that supports the achievement of an organization's objectives by addressing the full spectrum of its risk and managing the combined impact of those risks as an interrelated risk portfolio
- Gap Analysis
Answer: Comparison of an existing process or procedure (current state-what is) to a desired, future state (what should be) in order to identify deficiencies or excesses in the existing process (what to consider).
- Key Performance Indicators (KPIs)
Answer: Measure(s) of deviations from expected outcomes to help a firm see how it is performing.
- Key Risk Indicators (KRIs)
Answer: Leading indicator(s) of risk to business performance, giving early warning about potential risks.
- PESTLE Analysis
Answer: Political, Economic, Social, technological, Legal and Environmental and identifies the categories utilized to analyze internal and external environments.
- Risk
Answer: The effect of uncertainty of objectives.
- Risk Attitude
Answer: An organization's or individual's view/perspective of the perceived qualitative and quantitative value that may be gained in comparison to the related potential loss or losses.
- Risk Appetite
Answer: The total exposed amount that an organization wishes to under- take on the basis of risk-return trade-offs for one or more desired and expected outcomes.
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