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

When an operational area develops a treatment for a critical risk, what must a risk management professional do?

1. Add the risk to the risk map

2. Communicate the treatment plan directly with internal audit

3. Evaluate the dollar savings associated with the treatment

4. Evaluate the impact upon other areas

The correct answer is: Evaluate the impact upon other areas

When an operational area develops a treatment for a critical risk, the risk management professional must evaluate the impact upon other areas. This is essential because implementing a treatment in one area can have cascading effects across the organization. For instance, a risk treatment may alter processes, resource allocation, or dependency among different operational areas, potentially introducing new risks or affecting the effectiveness of existing controls elsewhere. Understanding and assessing the broader implications of a treatment ensures that the organization does not inadvertently create new vulnerabilities or inefficiencies. It also promotes a holistic view of risk management, where the interconnectivity of different functions is taken into consideration when changes are made. While adding the risk to the risk map, communicating with internal audit, and evaluating potential dollar savings might be important aspects of managing risk, they serve different purposes and do not capture the comprehensive understanding that evaluating the impact upon other areas entails.