RIMS-CRMP Vocab Definitions Latest Update 2024-2025 Questions and Verified Correct Answers Guaranteed A+
Adaptive Resilience - CORRECT ANSWER: Based on emerging events and trends that
are less predictable. This is supported by identification of internal strengths and external opportunities.
Assumption - CORRECT ANSWER: Something that is taken for granted.
Benchmarking - CORRECT ANSWER: The process of measuring the performance of
an organization against external standards of reference that frequently come from similar organizations doing similar things.
Biases - CORRECT ANSWER: An unreasoned or preconceived feeling or opinion that
influences behavior.
Bow Tie Analysis - CORRECT ANSWER: Is a hazard analysis technique (cause and
consequence) that is helpful in explaining potential consequences with and without specific preventive or preparedness controls in place.
Business Impact Analysis - CORRECT ANSWER: Typically consider business impacts
at a location or from a specific process based on a certain scenario or from a supply chain failure.
Coaching - CORRECT ANSWER: Practice of providing support and advice to an
individual or group in order to help them recognize ways in which they can improve their competencies and effectiveness.
Collaboration - CORRECT ANSWER: A fundamental competency since successful
solutions must be tied to business model drivers, objectives and those who have primary responsibilities for managing risk, at times referenced as "risk owners".
Communication Strategy/Plan - CORRECT ANSWER: Is a document that expresses
that goals and methods of an organization's risk management activities, including what an organization wishes to share with various audiences and which stakeholders the organization is trying to reach.
Compile - CORRECT ANSWER: Whereas information collection was broad and erred
on the side of too much information, the primary task at this stage is to begin to differentiate between important information and less-improved information in the context of the organization's objectives.
Conduct Risk - CORRECT ANSWER: Comprises a wide variety of activities and types
of behavior that fall outside other main categories of risk, such as market, credit, 1 / 2
liquidity and operational risk. In essence, it refers to risks attached to the way in which a firm, and its staff, behave in a wide range of market-facing and internal situations.
Contractual Risk Transfer - CORRECT ANSWER: A legally binding agreement
between two parties whereby one agrees to indemnify and hold another party harmless for specified actions, inactions, injuries or damages.
Corporate Governance - CORRECT ANSWER: The system of rules, practices, and
processes by which a company is directed and controlled.
COSO ERM - CORRECT ANSWER: Widely accepted framework used by management
to enhance an organization's ability to manage uncertainty and to consider how much risk to accept as it strives to increase enterprise value.
Criteria - CORRECT ANSWER: Operationalized to support clear and repeatable
analysis based on calculations of risk levels, measurements of management effectiveness, and residual positions of risk that are monitored within established risk appetite and tolerance threholds.
Enterprise Risk Management - CORRECT 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
External Context - CORRECT ANSWER: Identifies where risk identification process
should be directed to capture relevant risks and opportunities.
External Opportunities - CORRECT ANSWER: Ranked based on ease of
implementation and expected return.
External Threats - CORRECT ANSWER: Ranked based on likelihood and severity of
occurrence.
Financial Results - CORRECT ANSWER: Can be measured against different
independent variables by using statistical analysis.
Focus Groups - CORRECT ANSWER: Create long transcripts of conversations that
can be organized thematically and support content analysis.
Gap Analysis - CORRECT 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).
Hazard-Based Risks - CORRECT ANSWER: A common method for expressing risk
appetite is to set a boundary on a probability and impact grid. These boundaries have direct implications on the purchase of insurance and determination of deductibles.
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