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RMIA Certified Practising Risk Associate (CPRA)

Practice Questions100 questions

2026 Statistics

Key Facts: RMIA CPRM Exam

100

Practice Questions

OpenExamPrep

70%

Passing Score

RMIA

3.0 hrs

Time Limit

RMIA

150

Official Questions

RMIA

The RMIA CPRM exam is a proctored 150-question test on enterprise risk, ISO 31000, risk assessment modeling, and governance. It has a 70% passing score. This prep includes 100 practice questions.

Sample RMIA CPRM Practice Questions

Try these sample questions to test your RMIA CPRM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1According to ISO 31000:2018, what is the core purpose of risk management?

A.The absolute elimination of all operational and financial uncertainty.

B.The creation and protection of value.

C.Ensuring compliance with external regulatory requirements and standards.

D.Maximizing shareholder returns through aggressive risk-taking behavior.

Explanation: ISO 31000:2018 explicitly states that the core purpose of risk management is the creation and protection of value. It achieves this by improving performance, encouraging innovation, and supporting the achievement of organizational objectives.

2Under the ISO 31000:2018 framework, which component represents the ultimate driver of the risk management system and is positioned at the center of the framework diagram?

A.Continuous improvement.

B.Leadership and commitment.

C.Integration with organizational processes.

D.Design of the risk management framework.

Explanation: Leadership and commitment from the board and executive management is the core component at the center of the ISO 31000:2018 framework. It ensures that risk management is integrated into all organizational activities and strategic decision-making.

3When designing a Risk Appetite Statement (RAS) for an ASX-listed financial services provider, which metric is most appropriate for defining risk tolerance for capital adequacy?

A.A qualitative policy statement declaring zero tolerance for regulatory breaches.

B.The historical standard deviation of quarterly net interest margin (NIM) over a five-year period.

C.The total annual premium budget allocated for Directors and Officers (D&O) liability insurance.

D.A minimum Common Equity Tier 1 (CET1) ratio threshold above the APRA regulatory minimum, including a specified management buffer.

Explanation: For capital adequacy, risk tolerance must be quantitative and actionable. Specifying a target CET1 ratio that includes a management buffer above APRA's regulatory minimum provides a clear, measurable operational boundary for risk-taking.

4In the context of the Three Lines Model (formerly Three Lines of Defense), which of the following best describes the role of the Second Line?

A.Providing complementary expertise, support, monitoring, and challenge to management regarding risk-related matters.

B.Owning and managing risks directly through day-to-day operational controls.

C.Providing independent, objective assurance to the board and senior management on the adequacy of governance.

D.Setting the overall strategic objectives and approving the risk appetite of the enterprise.

Explanation: The Second Line consists of roles that provide expertise, support, monitoring, and challenge to those who directly own and manage risks (the First Line). This includes compliance, risk management, and quality control functions.

5Which ISO 31000:2018 risk management principle emphasizes that risk management must be tailored to the organization's external and internal context and risk profile?

A.Dynamic.

B.Structured and comprehensive.

C.Customized.

D.Inclusive.

Explanation: The 'Customized' principle states that risk management must be aligned with the organization's specific internal and external context, objectives, and risk profile, rather than applying a generic 'one-size-fits-all' approach.

6During an annual review of an enterprise risk management framework (ERMF), what is the primary indicator of a highly mature risk culture within an organization?

A.The organization has documented over 500 individual risks in its central risk register with quarterly updates.

B.The Chief Risk Officer (CRO) has sole authority to veto any commercial transaction that exceeds the defined risk tolerance.

C.Risk management concepts are seamlessly integrated into strategic planning, performance management, and daily operational decision-making.

D.No major operational risk events or regulatory fines have occurred in the past 24 months.

Explanation: A mature risk culture is characterized by the integration of risk thinking into everyday business processes, strategic planning, and performance management, rather than treating risk as a separate, bureaucratic exercise.

7An organization's 'risk capacity' is best defined as which of the following?

A.The maximum amount of risk the organization is physically and financially able to bear in pursuit of its objectives.

B.The target level of risk the board is willing to accept to achieve strategic goals.

C.The historical average loss experienced by the organization over the last fiscal cycle.

D.The total value of liquid capital reserves mandated by APRA or other licensing bodies.

Explanation: Risk capacity represents the absolute boundary of risk the organization can withstand before insolvency or structural failure. It is determined by financial resources, capital, borrowing capacity, and regulatory constraints.

8Under ISO 31000:2018, which component of the risk management process bridges 'monitoring and review' with 'establishing the context'?

A.Risk identification.

B.Communication and consultation.

C.Recording and reporting.

D.Risk treatment.

Explanation: Recording and reporting is the formal process block that documents risk management results and feeds them back into governance, ensuring outcomes are communicated and used to adjust the context and criteria.

9When integrating ERM into an organization's strategic planning process, which action should occur first?

A.Defining risk criteria and aligning risk appetite boundaries with strategic objectives.

B.Performing a detailed bottom-up risk assessment of all business units.

C.Purchasing enterprise risk management software to log and track operational issues.

D.Drafting business continuity plans for high-probability strategic threats.

Explanation: To integrate ERM strategically, risk criteria and appetite must be aligned with top-level strategic objectives from the start. This ensures that the organization's risk tolerance guides strategic choices rather than acting as a late-stage check.

10In a highly decentralized multinational corporation, which ERM organizational model is most effective for ensuring consistent risk standards while maintaining agility?

A.A completely centralized model, where all risk assessments and control decisions are made by the head office risk team.

B.A fully decentralized model, where each business unit operates its own risk framework with no central oversight.

C.An outsourced model, where external consultants conduct annual risk audits for all business units.

D.A federated model, where business unit risk officers report dotted-line to a central CRO and solid-line to local CEOs.

Explanation: A federated model balances consistency and local agility. Dotted-line reporting to a central CRO ensures alignment with corporate risk standards and reporting, while solid-line reporting to local CEOs maintains operations integration.

About the RMIA CPRM Exam

The RMIA Certified Practising Risk Manager (CPRM) is the advanced credential for senior risk managers and directors in Australia. The proctored exam tests enterprise risk management (ERM) framework integration (ISO 31000:2018 in-depth), advanced risk assessment processes (SWOT, Bowtie, Delphi, risk matrices, quantitative modeling), risk treatment planning and control systems, risk monitoring and continuous improvement (Key Risk Indicators - KRIs, risk registers, audit review reporting), and risk governance and ethics.

Assessment

Closed-book proctored computer-based exam administered online via RMIA testing portal.

Time Limit

3.0 hours

Passing Score

70%

Exam Fee

Approx. $300 - $500 AUD (plus annual membership fee requirements) (Risk Management Institution of Australasia (RMIA))

RMIA CPRM Exam Content Outline

25%

ERM Framework Integration

ISO 31000:2018 principles and framework, leadership alignment, risk culture, and strategic integration

25%

Risk Assessment Processes

Risk identification (Delphi, Bowtie), quantitative and qualitative risk analysis, risk mapping, and risk tolerance

20%

Risk Treatment & Controls

Control design, risk treatment options (sharing, transfer, avoidance, mitigation), and control effectiveness reviews

15%

Monitoring & Reporting

Key Risk Indicators (KRIs), risk registers maintenance, risk audits, and reporting to the board/audit committee

15%

Risk Governance & Ethics

Risk policy development, moral hazards, ethical decision-making, and regulatory compliance

How to Pass the RMIA CPRM Exam

What You Need to Know

Passing score: 70%
Assessment: Closed-book proctored computer-based exam administered online via RMIA testing portal.
Time limit: 3.0 hours
Exam fee: Approx. $300 - $500 AUD (plus annual membership fee requirements)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

RMIA CPRM Study Tips from Top Performers

1Master Bowtie Analysis: understand how preventative controls go on the left (threat to event) and mitigating controls go on the right (event to consequence)

2Learn Key Risk Indicators (KRIs): KRIs must be forward-looking (leading indicators) to signal changes in risk exposure, unlike KPIs which are historical (lagging indicators)

3Study ISO 31000 principles: memorize the core purpose of risk management (creation and protection of value) and its 8 supporting principles (e.g. structured, customized, dynamic)

Frequently Asked Questions

What is the difference between CPRA and CPRM?

CPRA (Risk Associate) is the foundational certification for professionals with ~1 year experience. CPRM (Risk Manager) is the advanced certification for senior risk managers with 3+ years experience, requiring proctored exam validation.

How do I maintain my CPRM certification?

You must remain an active RMIA member and document continuing professional development (CPD) points annually, with recertification every 3 years.