CRM CRM Enterprise Risk Management 2

Question 1

The ISO 31000 standard provides guidance on:

Accepted Answer

Risk management principles and guidelines

Answer

ISO 31000 is the international standard that provides principles, framework, and a process for managing risk in any organization.

Question 2

In COSO ERM, which component addresses the organization's core values and ethical standards?

Accepted Answer

Internal Environment

Answer

The Internal Environment component of COSO ERM establishes the foundation including culture, values, and ethical standards.

Question 3

What is a Key Risk Indicator (KRI)?

Accepted Answer

A measure used to signal increasing risk exposure before a risk event occurs

Answer

KRIs are forward-looking metrics that provide early warning signals of increasing risk exposure.

Question 4

Which ERM approach considers both upside opportunities and downside threats?

Accepted Answer

Enterprise Risk Management

Answer

ERM uniquely considers both upside opportunities and downside threats, unlike traditional risk management which focuses mainly on losses.

Question 5

What is the purpose of a risk heat map?

Accepted Answer

To visually represent risks by likelihood and impact

Answer

A risk heat map visually plots risks on a matrix of likelihood versus impact to prioritize risk management efforts.

CRM - Certified Risk Manager Practice Test