CRM Risk study guide
CRM Risk · Work through your exam, one topic at a time.
The Certified Risk Manager (CRM) is an advanced education designation for risk management and insurance professionals, administered by the Risk & Insurance Education Alliance and recognized internationally. This page is an independent study resource and is not affiliated with or endorsed by the Alliance. The CRM Risk study guide has 5 sections and about 1,629 words.
01Principles of Risk Management: Exposure Identification and ERM
Risk management is the process of identifying, analyzing, controlling, and financing exposures. A peril is the cause of a loss (fire, theft, a liability claim); a hazard is a condition that increases the chance or size of loss (physical, moral, morale, legal); an exposure is anything of value that is at risk.
334 words, about 2 min02Analysis of Risk: Qualitative and Quantitative Techniques and Forecasting
Qualitative analysis - risk matrices, heat maps, Delphi panels, scenario workshops - prioritizes exposures when data are thin. Quantitative analysis estimates frequency and severity and combines them.
320 words, about 2 min03Control of Risk: Risk Control, Crisis Planning, and Claims Management
Risk control changes the exposure itself. Core techniques: avoidance (eliminate the activity), loss prevention (reduce frequency), loss reduction (reduce severity), separation (split assets or activities), duplication (backups), diversification, and non-insurance contractual transfer.
318 words, about 2 min04Financing of Risk: Retention, Transfer, and Alternative Risk Transfer
Every exposure is ultimately retained or transferred; the questions are how much, by whom, and whether the retained portion is funded. Retention can be passive (unrecognized deductibles, coverage gaps) or active and planned (deductibles, self-insured retentions, captives, pools).
311 words, about 2 min05Practice of Risk Management: Organizational Requirements and International Risk
Risk management needs governance, not just technique. The board sets risk appetite and oversight; the chief risk officer or risk manager runs the framework; business units own their risks; internal audit gives independent assurance.
346 words, about 2 min