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The ISO-31000-CLA certification exam covers a wide range of topics related to risk management, including risk identification, assessment, and treatment. It also covers risk communication and monitoring, as well as the development and implementation of risk management policies and procedures. ISO-31000-CLA exam is designed to test the candidate's understanding of the ISO 31000 standard and their ability to apply it in a practical context.
GAQM ISO-31000-CLA (ISO 31000 - Certified Lead Risk Manager) Exam is a valuable certification for anyone who wants to demonstrate their expertise in risk management. It is an internationally recognized certification that covers a comprehensive framework for managing risks in any organization. ISO 31000 - Certified Lead Risk Manager certification can lead to career advancement opportunities and demonstrate a commitment to ongoing professional development.
GAQM ISO-31000-CLA Exam is a comprehensive test that covers all aspects of risk management, including risk identification, assessment, and treatment. It also covers the development and implementation of risk management policies and procedures, as well as the monitoring and review of risk management activities. ISO-31000-CLA exam is designed to test the knowledge and skills of individuals in all areas of risk management, including financial, operational, and strategic risk.
NEW QUESTION # 38
Which of the following statements about captive insurance companies are correct?
1. A captive cannot act as a reinsurer.
2. A captive can access reinsurance markets.
3. A captive can sometimes offer greater cover than is available in the insurance market.
4. A captive must be located in the same country as its parent company.
- A. 1 and 2.
- B. 1 and 4.
- C. 2 and 3.
Answer: C
Explanation:
Explanation
According to 3, a captive insurance company is "a wholly owned subsidiary insurer that provides risk mitigation services for its parent company or related entities". It can act as a reinsurer by accepting risks from other insurers or captives 1. It can also access reinsurance markets to transfer some of its own risks 1. It can sometimes offer greater cover than is available in the insurance market by tailoring its policies to suit its parent's needs 3. It does not have to be located in the same country as its parent company; in fact, many captives are domiciledoffshore for tax or regulatory reasons
NEW QUESTION # 39
The Chief Risk Officer within a large manufacturing organisation has been asked by the Board of Directors to provide an example of a pure risk. A suitable example would be
- A. a fire occurring in a new manufacturing process line.
- B. making a strategic decision that affects the long-term future of the organisation.
- C. the purchase of a currency derivative.
- D. entering into a contract to purchase a new factory.
Answer: A
Explanation:
Explanation
A fire occurring in a new manufacturing process line is an example of a pure risk, which is a situation that can only end in a loss12. For example, the fire could damage property, injure workers or disrupt operations.
NEW QUESTION # 40
The organization's resources and internal support are ________ the risk management strategy.
- A. adjustable to match
- B. outcomes of the development of
- C. inputs in the development of
- D. metrics used to measure the value of
Answer: C
Explanation:
Explanation
according to page 15 of source 3, the development of a risk management strategy takes into account the organization's resources and internal support. These resources include factors such as human, capital, and technological resources; organizational structure, culture, and governance; communication and consultation mechanisms; and support from senior management and leadership. These inputs have an impact on the feasibility and effectiveness of the risk management strategy.
NEW QUESTION # 41
Risk management is systematic, structured, and timely.
- A. True
- B. False
Answer: A
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 # 42
Enhanced risk management emphasizes the continual improvement of risk management capabilities.
- A. True
- B. False
Answer: A
Explanation:
Explanation
Enhanced risk management emphasizes the continual improvement of risk management capabilities1. This means that risk management is regularly reviewed and updated to ensure its relevance, adequacy, and effectiveness.
NEW QUESTION # 43
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 # 44
Which plan provides a roadmap on how the treatment options will be deployed?
- A. Vison
- B. Fixed
- C. Static
- D. Treatment
Answer: D
Explanation:
Explanation
Treatment plan provides a roadmap on how the treatment options will be deployed3. Treatment plan helps to define the objectives, scope, responsibilities, resources, timeframe, and monitoring mechanisms for implementing risk treatment actions.
NEW QUESTION # 45
Which activity does the risk management professional perform immediately after obtaining internal and external information about the organization?
- A. Analyze the information.
- B. Prioritize the information
- C. Organize the information
- D. Report the information.
Answer: C
Explanation:
Explanation
According to page 9-10 of source 2, risk management professionals organize internal and external information about the organization into categories such as stakeholders, strategic objectives, policies and procedures, risk appetite and tolerance, and risk culture. This categorization process facilitates the analysis and reporting of the risk information at a later stage, making it easier to understand and use.
NEW QUESTION # 46
Which teams are composed of cross functional subject matter experts, risk experts, and process owners?
- A. Crisis management teams
- B. Risk assessment teams
- C. Project management teams
- D. Crisis Information teams
Answer: B
Explanation:
Explanation
Risk assessment teams are composed of cross functional subject matter experts, risk experts, and process owners. Risk assessment teams conduct risk assessments for specific areas or projects within the organization.
NEW QUESTION # 47
Using the FIRM scorecard which of the following risks could a risk manager quantify?
1. Loss of income.
2. Financial gain.
3. Reputational damage.
- A. 2 and 3.
- B. 1 and 3.
- C. 1 and 2.
Answer: C
Explanation:
Explanation
According to 2, FIRM scorecard is "a tool for measuring risk performance". It uses four dimensions: financial impact, internal processes, reputation and market position (FIRM). Loss of income and financial gain are examples of financial impact risks that can be quantified using monetary values or ratios. Reputational damage is an example of reputation risk that is more difficult to quantify using objective measures.
NEW QUESTION # 48
Which of the following statements does not apply to ISO 31000?
- A. It can be used by any organization regardless of its size, activity or sector
- B. It can be used for certification purposes
- C. It is the first standard issued by ISO for risk management
Answer: B
Explanation:
Explanation
According to ISO31000 (2018), clause 1., it is "not intended for certification purposes". It provides guidance on how organizations can manage their risks effectively using a systematic approach based on principles, framework and process 3.
NEW QUESTION # 49
Which ISO Standard is used for hazard identification and risk assessment?
- A. ISO 16776
- B. ISO 17776
- C. ISO 18776
- D. ISO 15776
Answer: B
NEW QUESTION # 50
A large manufacturing organisation has renewed an insurance policy and has accepted a significant increase in the policy deductible. What is this most likely to indicate?
- A. Decreased risk tolerance.
- B. Increased risk elimination.
- C. Decreased risk avoidance.
- D. Increased risk retention.
Answer: D
Explanation:
Explanation
A large manufacturing organisation has renewed an insurance policy and has accepted a significant increase in the policy deductible. This is most likely to indicate increased risk retention, which means accepting more responsibility for potential losses5. This could be done to reduce insurance premiums or increase control over claims.
NEW QUESTION # 51
Which management can be used in varied and complex settings?
- A. Crisis
- B. Safety
- C. Risk
- D. Quality
Answer: C
Explanation:
Explanation
Risk management can be used in varied and complex settings . Risk management can help organizations deal with uncertainty and complexity in any type of activity, industry, or sector.
NEW QUESTION # 52
__________ and___________ can result in artifacts and records.
- A. RBPS, RBDM
- B. MOS, SMOS
- C. DBMS, RDBMS
- D. TDMS, VSMS
Answer: C
Explanation:
Explanation
DBMS (Database Management System) and RDBMS (Relational Database Management System) can result in artifacts and records1. These systems are used to store, organize, and manipulate data that can be used for risk management purposes.
NEW QUESTION # 53
When an operational area develops a treatment for a critical risk, the risk management professional MUST
- A. evaluate the dollar savings associated with the treatment.
- B. communicate the treatment plan directly with internal audit.
- C. evaluate the impact upon other areas.
- D. add the risk to the risk map.
Answer: C
Explanation:
Explanation
When an operational area develops a treatment for a critical risk, the risk management professional must evaluate the impact upon other areas3. This helps to ensure that the treatment does not create new risks or adversely affect other objectives.
NEW QUESTION # 54
Which of the following is a process with inputs, activities, and outcomes?
- A. Financial management
- B. Relations management
- C. Quality management
- D. Risk management
Answer: D
Explanation:
Explanation
Risk management is a process with inputs, activities, and outcomes1. The inputs are the organization's context and risk criteria. The activities are risk identification, analysis, evaluation, and treatment. The outcomes are improved decision making, performance, and resilience.
NEW QUESTION # 55
Within an organisation, when attempting to manage and control risk, the organisation should be aware that
- A. consideration of risk perception is not required.
- B. uncertainty must be taken into account
- C. consideration should be given to internal controls only.
- D. uncertainty need not be considered.
Answer: B
Explanation:
Explanation
Within an organisation, when attempting to manage and control risk, uncertainty must be taken into account4
. Uncertainty refers to "the state, even partial, of deficiency of information related to understanding or knowledge of an event" 4 and it influences both risks and opportunities.
NEW QUESTION # 56
Hopkin states "most standard definitions of risk refer to risks being attached to corporate objectives". What is another important factor to consider when linking risk to an organisation?
- A. Risk correlation.
- B. Core processes.
- C. Hazard management.
Answer: B
Explanation:
Explanation
According to 1, page 11, core processes are "the activities that an organization performs in order to deliver its products or services". They are essential for achieving the organization's objectives and creating value for its stakeholders. Therefore, core processes should be considered when linking risk to an organization.
NEW QUESTION # 57
New definition of risk under ISO 31000 and 31010 is:
- A. Probability of loss to an insurer
- B. Possibility of investment loss
- C. Probability of an event that will have an impact on objectives
- D. Danger that injury, damage, or loss will occur
Answer: C
Explanation:
Explanation
According to ISO/IEC Guide73 (2009), clause 1., risk is defined as "the effect of uncertainty on objectives".
This definition applies to both ISO/IEC Guide73 (2009) and ISO31000 (2018), which are standards for risk management terminology and principles respectively.
NEW QUESTION # 58
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