CRM Enterprise Risk Management Flashcards
6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRM Enterprise Risk Management flashcards as text
The ISO 31000 standard provides guidance on:
Answer: Risk management principles and guidelines
ISO 31000 is the international standard that provides principles, framework, and a process for managing risk in any organization.
In COSO ERM, which component addresses the organization's core values and ethical standards?
Answer: Internal Environment
The Internal Environment component of COSO ERM establishes the foundation including culture, values, and ethical standards.
What is a Key Risk Indicator (KRI)?
Answer: A measure used to signal increasing risk exposure before a risk event occurs
KRIs are forward-looking metrics that provide early warning signals of increasing risk exposure.
Which ERM approach considers both upside opportunities and downside threats?
Answer: Enterprise Risk Management
ERM uniquely considers both upside opportunities and downside threats, unlike traditional risk management which focuses mainly on losses.
What is the purpose of a risk heat map?
Answer: To visually represent risks by likelihood and impact
A risk heat map visually plots risks on a matrix of likelihood versus impact to prioritize risk management efforts.
In ERM, 'residual risk' is best defined as:
Answer: The risk remaining after risk treatment measures have been applied
Residual risk is the level of risk that remains after controls and mitigation measures have been implemented.