GAQM ISO-31000-CLA Exam Practice Test Instant Access

Question 1

After validating the training curricula, a risk management professional

Adevelops training.

Bdevelops and schedules training.

Cmatches training to audience.

Dschedules and conducts training.

Answer : D

According to , page 23, after validating the training curricula, a risk management professional schedules and conducts training sessions based on the target audience's needs and availability.

Question 2

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?

ADecreased risk avoidance.

BDecreased risk tolerance.

CIncreased risk elimination.

DIncreased risk retention.

Answer : D

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.

Question 3

When an operational area develops a treatment for a critical risk, the risk management professional MUST

Aadd the risk to the risk map.

Bcommunicate the treatment plan directly with internal audit.

Cevaluate the dollar savings associated with the treatment.

Devaluate the impact upon other areas.

Answer : D

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.

Question 4

Using the FIRM scorecard which of the following risks could a risk manager quantify?

1. Loss of income.

2. Financial gain.

3. Reputational damage.

A1 and 2.

B1 and 3.

C2 and 3.

Answer : A

According to2, 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.

Question 5

Which risk is sometimes called 'retained risk.'?

AResidual risk

BConceptualize risk

CAnalytical risk

DProcedural risk

Answer : A

According to ISO/IEC Guide73 (2009), clause B., residual risk is ''the level of remaining after controls have been applied''.It is sometimes called 'retained risk' because it represents the amount of risk that an organization decides to accept or retain after implementing its mitigation strategies3.

Question 6

Organizational information systems, information flows, and formal and informal decision-making processes are all a part of establishing which type of context in regard to the organization?

AExternal

BTechnological

CLocal

DInternal

Answer : D

According to ISO31000 (2018), clause 5., establishing the context involves defining ''the external and internal parameters to be taken into account when managing risk''. The internal context includes ''information systems, information flows and decision-making processes'' among other factors.

Question 7

ISO uses the concept of uncertainty as the driver and rationale for risk management.

ATrue

BFalse

Answer : A

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.

GAQM ISO-31000-CLA ISO 31000 - Certified Lead Risk Manager Exam Practice Test