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

When defining success measures for the organization's risk strategy, what step will the risk management professional include?

1. A review of the goals and objectives of the risk strategy

2. A selection of appropriate media for communicating the risk strategy

3. An analysis of the organization's total cost of insurable risk

4. The development of timelines for implementing the risk strategy

The correct answer is: A review of the goals and objectives of the risk strategy

Defining success measures for the organization's risk strategy begins with a review of the goals and objectives of that strategy. This step is critical because it establishes the foundation upon which all subsequent actions and evaluations will be built. By clearly understanding the goals and objectives, a risk management professional can identify the specific criteria that will indicate whether those goals have been met or whether adjustments are necessary. This connection between goals and success measures ensures that the organization remains aligned with its overarching mission and vision. The success measures then become meaningful and relevant metrics that can objectively assess the performance of the risk strategy in relation to what the organization aims to achieve. While other steps, such as selecting communication media, analyzing total costs, or establishing timelines, are important components of risk management, they do not directly contribute to the foundational understanding needed to measure the success of the strategy itself. Focusing on the goals and objectives sets the stage for everything else in the risk management process.