Risk and Insurance Management Society (RIMS) Certified Risk Management Professional (CRMP) Practice Exam

STEEP is a method used for strategic planning. What does the acronym STEEP stand for?

1. Security, technical, emerging, external, profit

2. Social, technological, economic, environmental, political

3. Standard, technique, enterprise, environmental, process

4. Social, theory, external, engaging, program

The correct answer is: Social, technological, economic, environmental, political

The acronym STEEP stands for Social, Technological, Economic, Environmental, and Political. This framework is designed to help organizations identify and analyze the various external factors that can impact their strategic planning. By evaluating each of these dimensions, organizations can gain a comprehensive understanding of the broader context in which they operate, which is essential for making informed decisions and developing effective strategies. The social aspect examines demographic trends and societal changes, the technological dimension focuses on innovations and their implications, the economic component looks at market conditions and financial factors, the environmental aspect considers ecological concerns and sustainability issues, while the political element reviews governmental influences and regulatory changes. Collectively, these categories enable organizations to identify risks and opportunities in their environment, fostering better long-term planning. Other acronyms presented do not accurately represent a widely recognized or relevant strategic planning framework. For instance, the first option incorrectly emphasizes profit and security rather than the broader societal and technological contexts. The additional choices also lack cohesion and fail to encompass the critical external dimensions necessary for effective strategic assessment.