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

What analysis compares an existing process to a desired future state to identify deficiencies?

1. Gap analysis

2. Impact analysis

3. Risk assessment

4. Cost-benefit analysis

The correct answer is: Gap analysis

Gap analysis is a method used to assess the differences between the current state of a process or system and its desired future state. This involves identifying the gaps that exist—specifically where the current process falls short in meeting the desired criteria or outcomes. By conducting a gap analysis, organizations can pinpoint areas that require improvement and prioritize initiatives to bridge those gaps effectively. In the context of risk management and organizational processes, gap analysis is particularly valuable for strategic planning and ensuring that resources are allocated effectively to achieve desired results. This approach not only highlights deficiencies but also helps in developing a clear pathway for enhancements, facilitating better decision-making and resource allocation. Other types of analyses such as impact analysis, risk assessment, and cost-benefit analysis serve different purposes. Impact analysis evaluates the consequences of a specific change or event; risk assessment identifies and evaluates risks to an organization; and cost-benefit analysis compares the financial costs and benefits of a decision or investment. Each of these methodologies is important, but none directly focus on comparing an existing process to a desired future state for the purpose of identifying deficiencies in the same way that gap analysis does.