RIMS - CRMP Complete Study Guide; With All Solutions Complete
Risks - ANSWER-The effect of uncertainty on objectives The chance of something happening that will have an impact on objectives Being prepared for the worst and being poised to exploit opportunities as they are discovered Risk management strategies' general focus - ANSWER-Meeting or exceeding an organization's objectives Adhering to control-based objectives, rules and/or controls Complying with regulatory requirements Communication and Consultation - ANSWER-Risk management professional's role in Implementing Risk Strategies Risk Identification Process - ANSWER-Finding, Recognizing and Recording Risks Risk Analysis - ANSWER-The process of characterizing and understanding the nature of risk and of considering the level of risk in the context of the organization's willingness to accept risk.Likelihood, Consequences, other criteria such as timing, duration, vulnerability and interdependencies - ANSWER-Risk is typically analyzed on the basis of Bow tie analysis - ANSWER-hazard analysis technique (cause and consequence) Business impact analysis - ANSWER-consider business impacts at a location or from a specific process Gap analysis - ANSWER-determine steps to improve the organization's capacity to move from a current state to a desired, future state. (current available factors, success factors needed to achieve future desired objectives, highlighting the gaps) Root Cause Analysis - ANSWER-multiple techniques designed to identify the underlying or initiating risk sources or drivers. (fault tree analysis, event tree analysis, failure mode and effect analysis and cause-and-effect analysis - fish bone diagram) Influence analysis/diagrams - ANSWER-identify the strength of influencing factors and help determine potential weighting for consideration during the risk assessment process. Define root causes for major risks, define the chain of events likely in a scenario and become the foundation for further modeling.Risk Register Analysis - ANSWER-compile risk into a risk register to analyze and manage those risks in an organized way, typically by category.Scenario analysis - ANSWER-process of analyzing possible and plausible future events by considering alternative settings, circumstances and outcomes. It provides a basis for making decisions in the context of different conditions.Site analysis - ANSWER-leaders at each site perform an assessment by analyzing and evaluating 1 / 2
the potential risks based on what is being produced at the site and its environmental factors. This may include threat, vulnerability and criticality analyses.SWOT analysis - ANSWER-strengths and weaknesses (internal), opportunities and threats (external) Monte Carlo analysis - ANSWER-mathematical technique that generates random variables for modelling risk or uncertainty of a certain system (simulation). The random variables or inputs are modelled on the basis of probability distributions Stress analysis - ANSWER-a form of simulation used to determine reactions to different situations.Also used to gauge how certain stressors will affect a company or industry.Influence diagrams, scenario analysis, site analysis, SWOT - ANSWER-Examples of qualitative methodology for analyzing data Bowtie, business impact analysis, fault tree, cause/consequence analysis - ANSWER-Examples of combined methodology for analyzing data Monte Carlo, stress analysis - ANSWER-Examples of quantitative methodology for analyzing data Risk evaluation - ANSWER-uses which risk criteria (risk appetite, risk tolerance, outputs from risk identification and risk analysis process) to determine which risks are acceptable and which require additional modification or treatment Risk appetite - ANSWER-is the total exposed amount that an organization wishes to undertake on the basis of risk-return trade-offs for one or more desire and expected outcomes.Risk tolerance - ANSWER-is 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.Risk interdependencies - ANSWER-are situations where risks can have a cascading effect.Understanding this provides an opportunity to facilitate collaboration among various business units by addressing similar or related risks together.Indemnification - ANSWER-contractual obligation placed on the indemnifier to return the indemnified to essentially the same financial condition that existed prior to the loss or claim or to stand in as the source for financing the legal liability.Contractual risk transfer - 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.Hold harmless - ANSWER-wording that requires one party to shield the other party from the effects of the legal liability assignable to transferor or obligor.Risk sharing/transfer - ANSWER-action taken when i) costs of retaining risk exceeds the organization's risk tolerance; ii) risks or some portion can be transferred at a lower cost, iii) risks should be apportioned based o an agreement and iv) it is required by regulation.Insurance - ANSWER-risk transfer mechanism that ensures full or partial financial compensation for the loss, damage and legal obligations of a policy holder or beneficiary.Consultative role of risk management professionals in implementing solutions - ANSWER-Strategic advisors
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