ISO-31000-CLA Sample Practice Exam Questions 2024 Updated Verified
Exam Study Guide Free Practice Test LAST UPDATED ISO-31000-CLA
NEW QUESTION # 27
Which risk identification involves creating alternative ways to achieve an objective?
- A. Objectives-Based
- B. Scenario Based
Answer: B
Explanation:
Explanation
According to , page 11, scenario based risk identification involves "creating different scenarios based on varying assumptions about how events might unfold". This can help explore alternative ways to achieve an objective under different circumstances.
NEW QUESTION # 28
The Chief Risk Officer chairs the ERM/RM steering committee.
- A. False
- B. True
Answer: B
Explanation:
Explanation
The Chief Risk Officer chairs the ERM/RM steering committee. The ERM/RM steering committee oversees the organization's risk management activities and provides guidance and support to senior management.
NEW QUESTION # 29
Enterprise Risk Management (ERM) is considered to have a significant difference compared with traditional risk management approaches because ERM
- A. ensures that an organisation's objectives will be achieved.
- B. takes an integrated or holistic approach.
- C. addresses strategic, tactical and operational risk management.
Answer: B
Explanation:
Explanation
According to 2, domain 1, ERM "is a coordinated set of activities and methods that is used by organizations to manage risks across the enterprise". It takes an integrated or holistic approach that considers all types of risks and their interrelationships across the organization's functions and levels.
NEW QUESTION # 30
Which of the following is considered a risk analysis technique?
- A. Budget allocation
- B. Monte Carlo simulation
- C. Consensus building
- D. Insurance placement
Answer: B
Explanation:
Explanation
Monte Carlo simulation is a risk analysis technique that uses random variables to model uncertainty and generate possible outcomes2. This helps to assess the probability and impact of different scenarios.
NEW QUESTION # 31
Risk management is systematic, structured, and timely.
- A. False
- B. True
Answer: B
Explanation:
Explanation
Risk management is systematic, structured, and timely4. Systematic means that risk management follows a logical and consistent approach. Structured means that risk management has clear steps, roles, and responsibilities. Timely means that risk management provides information in time for decision making.
NEW QUESTION # 32
Which of the following ensures that uncertainty is managed so the organization can meet its objectives?
- A. Enhanced risk management
- B. Avoidance risk management
- C. Extended risk management
- D. Evasive risk management
Answer: A
Explanation:
Explanation
Enhanced risk management ensures that uncertainty is managed so the organization can meet its objectives4.
Enhanced risk management involves applying a systematic and logical process to identify, analyze, evaluate, treat, monitor, review, and communicate risks.
NEW QUESTION # 33
Due to the nature of crises, the management of a Crisis Management Team (CMT) usually requires which type of decision making structure?
- A. Consensus-based
- B. Bottom-up
- C. Centralized
- D. Networked
Answer: C
Explanation:
Explanation
According to , page 17, a crisis management team (CMT) is "a group of senior managers who have been delegated authority by an organization's executive leadership team to make decisions during a crisis". A centralized decision making structure allows for faster and more coordinated responses in an emergency situation.
NEW QUESTION # 34
How many types of potential risk strategies exist?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
Explanation:
Explanation
According to 1, there are four types of potential risk strategies for threats: avoid (eliminate or change), transfer (share or outsource), mitigate (reduce or control), accept (retain or monitor). There are also four types of potential risk strategies for opportunities: exploit (ensure or enhance), share (allocate or collaborate), enhance (increase or maximize), accept (acknowledge or watch).
NEW QUESTION # 35
Who is expected to take a more focused oversight role with respect to risk management control and governance process?
- A. None of the above
- B. External auditors
- C. Internal auditors
- D. Audit committee
Answer: C
Explanation:
Explanation
According to 3, page 7, one of the current trends in auditing, risk management and compliance is "increasing expectations for internal auditors to take a more focused oversight role with respect to enterprise-wide governance processes". Internal auditors can provide independent assurance on how well an organization manages its risks using various tools such as audits, reviews, assessments and evaluations.
NEW QUESTION # 36
ISO uses the concept of uncertainty as the driver and rationale for risk management.
- A. False
- B. True
Answer: B
Explanation:
Explanation
ISO uses the concept of uncertainty as the driver and rationale for risk management. Uncertainty refers to the state of having incomplete knowledge or understanding about something that can affect an organization's objectives.
NEW QUESTION # 37
A program officer and a security manager are planning a focus group discussion with community members on potential risks related to projects on female empowerment in local secondary schools. What is the best approach for them to take to define the context?
- A. Discuss the role of girls and how they are viewed by community members.
- B. Review the roles of the humanitarian principles in relation to education.
- C. Identify any increase of risk with the introduction of a female empowerment project.
- D. Define gender equality in the school environment.
Answer: A
Explanation:
Explanation
According to , page 9, defining the context involves "understanding what influences people's perception and tolerance of risks". Discussing how girls are viewed by community members can help identify potential sources of resistance, conflict or violence that may affect the project's objectives and outcomes.
NEW QUESTION # 38
A train has crashed and is badly damaged. There have been numerous claims from injured passengers as well as a loss of revenue for the train operator. This is an example of
- A. risk probability.
- B. risk aggregation.
- C. risk severity.
- D. risk categorisation.
Answer: B
Explanation:
Explanation
A train crash and its consequences is an example of risk aggregation, which is the combined effect of multiple risks on an organisation's objectives3. Risk aggregation can result in losses that are greater than the sum of individual losses.
NEW QUESTION # 39
How does a pure risk differ from a speculative risk?
- A. A pure risk only leads to the possibility of a loss, whereas a speculative risk may lead to a gain.
- B. A pure risk is not subject to regulatory control but a speculative risk always is.
- C. A pure risk always has an environmental cause whereas a speculative risk always involves human error.
- D. A pure risk can be measured in probability terms whereas a speculative risk cannot.
Answer: A
Explanation:
Explanation
A pure risk only leads to the possibility of a loss, whereas a speculative risk may lead to a gain12. For example, entering into a contract to purchase a new factory is a speculative risk, as it could result in either profit or loss depending on market conditions.
NEW QUESTION # 40
ISO 31000:2018 risk management process is ______________
- A. prescriptive
- B. visionitive
- C. cursive
- D. descriptive
Answer: D
Explanation:
Explanation
ISO 31000:2018 risk management process is descriptive . This means that it provides guidance on what should be done for effective risk management, but not how it should be done. The process can be customized to any organization and its context.
NEW QUESTION # 41
Records and reports provide a continuing account of the risk management system.
- A. False
- B. True
Answer: B
Explanation:
Explanation
Records and reports provide a continuing account of the risk management system2. They help to monitor and review the performance and effectiveness of risk management.
NEW QUESTION # 42
Which management ensures that value is created by identifying opportunities for investment, mergers, or acquisition.
- A. Crisis
- B. Quality
- C. Risk
- D. Safety
Answer: C
Explanation:
Explanation
Risk management ensures that value is created by identifying opportunities for investment, mergers, or acquisition. Risk management helps to assess the potential benefits, costs, and risks of different options and make informed decisions.
NEW QUESTION # 43
Which step is the risk process steps to manage, control, or remediate risk?
- A. Risk evaluation
- B. Risk identification
- C. Risk avoidance
- D. Risk treatment
Answer: D
Explanation:
Explanation
Risk treatment is the risk process step to manage, control, or remediate risk1. Risk treatment involves selecting and implementing options to modify or control risks.
NEW QUESTION # 44
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GAQM ISO-31000-CLA (ISO 31000 - Certified Lead Risk Manager) Certification Exam is designed for professionals who want to demonstrate their expertise and knowledge in risk management. ISO 31000 - Certified Lead Risk Manager certification exam ensures that candidates have a comprehensive understanding of the principles and guidelines of ISO 31000, which is the international standard for risk management. ISO 31000 provides a framework for managing risks across an organization, from identifying and assessing risks to implementing and monitoring risk management strategies. ISO-31000-CLA exam covers topics such as risk identification, risk assessment, risk treatment, risk communication, and risk monitoring and review.
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