RIMS-CRMP EXAM STUDY GUIDE

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RIMS-CRMP EXAM STUDY GUIDE

1. Benchmarking: The process of measuring the performance of an organization

against external standards of reference that frequently come from similar organi- zations doing similar things.

2. Corporate Governance: The system of rules, practices and processes by which

a company is directed and controlled.

• Enterprise Risk Management: A strategic discipline that supports the achieve- ment

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.

4. Gap Analysis: Comparison of an existing process or procedure to recognize

standards in order to identify deficiencies or excesses in the existing process.

5. Key performance indicator (KPI): As activity that signals the achievement of

organizational objectives, emphasize opportunities and strategic objectives.

6. Key risk indicator (KRI): designed to manage downside risk. A measurement of

how risk and volatility relate to achieving organizational objectives,

7. PESTLE Analysis: PESTLE is an acronym for Political, Economic, Social, Tech-

nology, Legal and Environmental and identifies the categories utilized to analyze internal and external environments. Other forms of the acronym include "PEST" and "PESTEL."

8. Risk: The effect of uncertainty on objectives.

• Risk Appetite: The total exposed amount that an organization wishes to under- take 1 / 2

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on the basis of risk return trade-offs for one or more desired and expected outcomes

• Risk Attitude: An organization's or individuals' view/perspective of the per-

ceived qualitative and quantitative value that may be gained in comparison to the related potential loss or losses.

• Risk Culture: The beliefs, values, norms and traditions of behavior of individu- als

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: Any person in an organization who is a leader and influences peers

regarding the value that risk management adds to the organization.

• Risk governance: The architecture within which risk management operates in a

company

14. Risk Management: The process of making and implementing decisions that will

minimize the adverse effects of accidental losses on an organization.

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