M_o_R^® Foundation Exam Simulator

According to PeopleCert, the following is the detailed syllabus for the exam:

• Introduction & Glossary
  • Know facts, terms and concepts relating to M_o_R. Specifically to recall definitions of:
    • Risk management terms used in the M_o_R framework:
      • Risk
      • Issue
      • Threat
      • Opportunity
    • Corporate governance terms used in the M_o_R framework:
      • Risk exposure
      • Risk management
      • Corporate governance
  • Know facts, terms and concepts relating to the M_o_R approach, perspectives and the actions needed for effective risk management implementation. Specifically to recall:
    • The main elements of the M_o_R framework:
      • Principles
      • Approach
      • Process
      • Embedding and reviewing
    • The actions needed for effective risk management (identify, assess, control (plan and implement))
    • The four perspectives and their relationship with long-term, medium-term and short-term goals
  • Understand how the M_o_R framework is used. Specifically to identify:
    • The purpose of each of the elements of the M_o_R framework
    • How decisions about risk vary depending on whether the organizational objectives are:
      • Long-term
      • Medium-term
      • Short-tem
    • How risk management supports better decision-making
    • How effective risk management is likely to improve performance against objectives
    • How legislation and increased focus on formal risk management influences the drivers for an increased focus on risk management, corporate governance and internal control.
    • The benefits of risk management
    • The difference between a risk and an issue
• Principles
  • Know the facts, terms and concepts relating to the M_o_R principles. Specifically to recall:
    • That the principles are informed by corporate governance principles and ISO31000:2009
    • Definitions of the terms describing the amount of risk an organization is willing to take:
      • Risk capacity
      • Risk appetite
      • Risk tolerance
    • Definition of terms used to support decision making:
      • Key performance indicator (KPI)
      • Early warning indicator (EWI)
    • The eight M_o_R principles:
      • The seven principles that enable risk management
      • The principle that results from implementing risk management well
  • Understand how the M_o_R principles are used and the main mechanisms (e.g., appetite, capacity, tolerance, EWI, KPI, etc.) that support them. Specifically to identify:
    • The purpose of each of the eight M_o_R principles:
      • Aligns with objectives
      • Fits the context
      • Engages stakeholders
      • Provides clear guidance
      • Informs decision-making
      • Facilitates continual improvement
      • Creates a supportive culture
      • Achieves measurable value.
    • The outcome from satisfying each of the principles
      • Aligns with objectives
      • Fits the context
      • Engages stakeholders
      • Provides clear guidance
      • Informs decision-making
      • Facilitates continual improvement
      • Creates a supportive culture
      • Achieves measurable value
    • How the principles support corporate governance and internal control:
      • Aligns with objectives.
      • Fits the context
      • Engages stakeholders
      • Provides clear guidance
      • Informs decision-making
      • Facilitates continual improvement
      • Creates a supportive culture
      • Achieves measurable value
    • The link between risk tolerance and escalation
• Approach
  • Know the facts, terms and concepts relating to the M_o_R approach. Specifically to recall:
    • The three documents that make up the central approach documents:
      • Risk management policy
      • Risk management process guide
      • Risk management strategy
  • Understand the contents of the nine M_o_R approach documents, how they relate to the principles and how they are applied throughout the M_o_R framework. Specifically to identify:
    • The purpose of each of the M_o_R documents
      • Risk management policy
      • Risk management process guide
      • Risk management strategy
      • Risk Register
      • Issue Register
      • Risk improvement plan
      • Risk communications plan
      • Risk response plan
      • Risk progress report
    • The concepts supporting the contents of the risk management policy:
      • The amount of risk an organisation can bear
      • The amount of risk an organisation is willing to accept
      • Risk tolerance thresholds – the levels of risk exposure which when exceeded will trigger an escalation
      • Procedures for escalation and delegation between the different perspectives
    • The concepts supporting the contents of the risk management process guide:
      • The roles and responsibilities for the process, management structure of risk management, risk management tools and reviews and audits of the process
      • The tools and techniques used to support the risk management process steps
      • The templates, their purpose and locations
    • The concepts supporting the contents of the risk management strategy:
      • Scales for estimating probability and impact
      • Risk categories
      • Risk appetite for the activity
      • Risk tolerance thresholds for the activity
      • Reporting lines, owners of contingent plans, duties of the risk manager and primary participants in the risk management process
    • The components of the risk register:
      • Risk description
      • Risk category
      • Probability
      • Impact
      • Proximity
      • Risk status
      • Risk response actions
    • In a risk description, the difference between cause, event and effect
    • The relationship between the nine M_o_R approach documents
• Process
  • Know the facts, terms and concepts of the M_o_R process. Specifically to recall:
    • That risk management is an iterative process
    • Definitions of the terms used in the process steps and sub-steps:
      • Probability (inherent and residual)
      • Impact (inherent and residual)
      • Proximity
    • The steps in the M_o_R process
      • The primary steps in the M_o_R process
      • The sub-steps in the Identify and Assess steps
      • The sequence of the steps
    • The common terminology used to describe each step:
      • Goals
      • Inputs
      • Outputs
      • Techniques
      • Tasks
    • The common process barriers to success to implementing the risk management process
  • Understand how the M_o_R process is used to identify, assess and control risk. Specifically to identify:
    • The goal of the:
      • Identify – Context step
      • Identify - Risks step
      • Assess - Estimate step
      • Assess – Evaluate step
      • Plan step
      • Implement step
    • Which of the nine M_o_R framework documents are developed, used or updated in the:
      • Identify – Context step
      • Identify - Risks step
      • Assess - Estimate step
      • Assess – Evaluate step
      • Plan step
      • Implement step
    • The difference between inherent, secondary and residual risks
    • The difference and relationship between risk owner and risk actionee
• Embedding & Review
  • Know the facts, terms and concepts relating to Embedding and reviewing of risk management into the culture of an organization. Specifically to recall definitions of terms used in Embedding and reviewing the implementation of risk management:
    • Risk management health check
    • Risk management maturity model
  • Understand the need for integrating risk management into the culture of an organization. Specifically to identify:
    • The purpose of embedding and reviewing risk management
    • The purpose of a risk management health check
    • The purpose of a risk management maturity model
    • Ways to measure value in implementing risk management
    • Ways to:
      • Overcome barriers
      • Obtain and develop senior management commitment and support
      • Build and develop a risk-aware organizational culture
    • Opportunities and trigger points to emphasize support and commitment to risk management and establish a continual cycle of review and improvement.
    • The similarities and differences between a risk management health check and a risk management maturity model
• Perspectives
  • Know the facts, terms and concepts of the M_o_R perspectives. Specifically to recall definitions of terms used in the perspectives:
    • Contingency
    • Enterprise Risk Management (ERM)
    • Central Risk Function
  • Understand how the M_o_R perspectives are used. Specifically to identify:
    • The purpose of each perspective
    • How the principle ‘aligns with objectives’ is applied and the focus of concern for each perspective:
      • Strategic
      • Programme
      • Project
      • Operational
    • How the principle ’fits the context’ is applied and the typical areas of uncertainty for each perspective:
      • Strategic
      • Programme
      • Project
      • Operational
    • How the principle ‘engages stakeholders’ is applied and the likely stakeholder groups at each perspective:
      • Strategic
      • Programme
      • Project
      • Operational
    • How the principle ‘provides clear guidance’ is applied to each perspective:
      • Strategic
      • Programme
      • Project
      • Operational
    • The risk management responsibilities of the senior team
      • Writes and owns the risk management policy
      • Defines the overall risk appetite
      • Reviews the risk management strategy
    • The risk management responsibilities of the senior manager appointed to represent the senior team:
      • Ensures appropriate governance and internal controls are in place
      • Defines and monitors risk tolerances
      • Ensures adequate resources are available to implement the risk management strategy
    • The risk management responsibilities of the manager:
      • Ensures that risk registers, risk reviews and escalation process are in place
      • Validates risk assessments
    • The risk management responsibilities of assurance:
      • Assures the senior team that risk accountabilities exist
      • Assures compliance with internal controls
      • Makes formal assessments of management of risk implementation
    • The risk management responsibilities of the risk specialist:
      • Carries out ongoing management of risk maturity assessments
      • Prepares risk management strategies
      • Develops plans to improve management of risk
      • Develops management of risk guidance and training
    • The risk management responsibilities of the team:
      • Participates in identification, assessment, planning and management of threats and opportunities
      • Escalates risk as necessary as defined by the risk management policy
• Common Techniques
  • Know the facts, terms and concepts of the M_o_R techniques. Specifically to recall definitions of the terms used in the:
    • Risk description technique:
      • Cause
      • Event
      • Effect
    • Risk response planning technique:
      • Avoid a threat
      • Exploit an opportunity
      • Reduce a threat
      • Enhance an opportunity
      • Transfer the risk
      • Share the risk
      • Accept the risk
      • Prepare contingent plans
  • Understand how the M_o_R techniques are used. Specifically to identify:
    • How the PESTLE analysis, SWOT analysis and horizon scanning techniques are used for understanding the context of an organizational activity
    • The relationships between a stakeholder analysis, an influence/interest matrix and a RACI diagram and how they are used for understanding stakeholders’ interests
    • How a probability impact grid and a summary risk profile are used for visualizing the total risk to an activity
    • How the checklist, prompt list, risk breakdown structure and a cause and effect diagram assist in identifying risks
    • How the avoid and reduce responses are used to respond to threats
    • How the exploiting and enhancing responses are used to respond to opportunities
    • How the ‘transfer the risk’, ‘share the risk’ and ‘accept the risk’ are used to respond to risks
    • The relationship between ‘prepare contingent plans' and the ‘reduce the threat’ / ‘enhance the opportunity' plan responses
    • How the probability assessment, impact assessment, proximity assessment and expected value assessment techniques are used for risk estimation
• Risk Specialisms
  • Know the facts, terms and concepts of the M_o_R risk specialisms. Specifically to recall:
    • The types of risk specialisms:
      • Business continuity management
      • Incident and crisis management
      • Health and safety management
      • Security risk management
      • Financial risk management
      • Environmental risk management
      • Reputational risk management
      • Contract risk management
    • That specialisms have developed as organizations have applied particular approaches to managing specific types of risks
  • Understand how the M_o_R risk specialisms are used. Specifically to identify:
    • The purpose and scope of each risk management specialism as listed in RS0101