[Q55-Q72] Latest ISO-31000-CLA Practice Test Questions Verified Answers As Experienced in the Actual Test!

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Latest ISO-31000-CLA Practice Test Questions Verified Answers As Experienced in the Actual Test!

Pass GAQM ISO-31000-CLA Exam in First Attempt Easily

The ISO-31000-CLA Exam covers a wide range of topics related to risk management, including risk identification, assessment, and treatment, as well as risk communication and monitoring. ISO-31000-CLA exam is divided into multiple sections, each focusing on a specific aspect of risk management. ISO-31000-CLA exam questions are designed to test the candidate’s knowledge and practical skills in risk management, and are based on real-world scenarios that professionals may encounter in their day-to-day activities.

NO.55 Enterprise Risk Management (ERM) is considered to have a significant difference compared with traditional risk management approaches because ERM

ensures that an organisation’s objectives will be achieved.

takes an integrated or holistic approach.

addresses strategic, tactical and operational risk management.

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.

NO.56 An international bank has identified the risks associated with economic changes in the countries in which it operates. Which of the following correctly describes these risks?

Internal – Infrastructure.

External – Reputational.

External – Marketplace.

Explanation
According to 1, page 15-16, external risks are “those arising from events outside the organization” and marketplace risks are “those arising from changes in market conditions such as customer demand, competition, regulation”. Economic changes in different countries can affect the market conditions for an international bank’s operations.

NO.57 Risk management theory that considers an organization-wide approach to risk management is known as what type of approach?

Cross-functional

Comprehensive

Interrelational

Holistic

Explanation
According to , page 4, a holistic approach to risk management is “one that considers all sources and types of risks across all organizational units and activities”. It aims to integrate governance, strategy, performance, culture and ethics into a coherent framework for managing uncertainty 2.

NO.58 Which management ensures that value is created by identifying opportunities for investment, mergers, or acquisition.

Risk

Quality

Crisis

Safety

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.

NO.59 What does the probability of occurrence multiplied by the impact of the event, equals to

Risk Tangent

Risk Scale

Risk Level

Risk Magnitude

Explanation
According to , page 13-14, probability multiplied by impact equals risk magnitude which is “a measure that reflects both likelihood and consequences”. It can be used as an indicator for prioritizing risks.

NO.60 Which element is often the biggest challenge in risk implementation?

human

computation

Explanation
Human element is often the biggest challenge in risk implementation. Human element involves overcoming resistance to change, engaging stakeholders, building trust and commitment, and fostering a positive risk culture.

NO.61 Causes of risk include all the following except:

Health, safety and environment

Finance

Insurance

Chemical breakdown

Explanation
According to ISO/IEC Guide73 (2009), clause B., causes are “elements which alone or in combination have potential to give rise to risk”. Health, safety, environment, finance andchemical breakdown are examples of causes that can create risks for an organization or an individual 1. Insurance is not a cause but a method of transferring or mitigating some types of risks 1.

NO.62 A risk management professional advises management on the status of key risks by

annually identifying the inventory of risks.

providing information about competitors’ risk management plan.

providing insights into the changing characteristics of a risk.

summarizing internal audit reports.

Explanation
A risk management professional advises management on the status of key risks by providing insights into the changing characteristics of a risk3. This helps to monitor and review the effectiveness of risk management activities and communicate any changes in risk levels or priorities.

NO.63 The organization’s resources and internal support are ________ the risk management strategy.

adjustable to match

inputs in the development of

metrics used to measure the value of

outcomes of the development of

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.

NO.64 Which of the following is a process with inputs, activities, and outcomes?

Supply chain management

Financial management

Risk management

Quality management

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.

NO.65 Which of the following are ISO 31000:2009 Enhanced Risk Management attributes? (Choose two)

Full accountability for risk controls and treatment

Solution offering

Decision making involves risk

Crisis management and process attributes

Explanation
Full accountability for risk controls and treatment and decision making involves risk are two of the enhanced risk management attributes according to ISO 31000:20091. These attributes indicate that risk management is integrated into governance and decision-making processes.

NO.66 Which risk identification involves creating alternative ways to achieve an objective?

Scenario Based

Objectives-Based

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.

NO.67 From the three actions Tom Brown is undertaking, which is categorised as a pure risk?

Buying 100 lottery tickets

Selling his house even though he receives less than he paid for it because he thinks prices will fall further.

Going horse riding without wearing a riding helmet.

Explanation
According to 1, page 9, pure risk is “a situation where there are only two possible outcomes: loss or no loss”.
Buying lottery tickets and selling a house are examples of speculative risk, where there is a possibility of gain or loss. Going horse riding without a helmet is an example of pure risk, where there is only a possibility of loss (injury) or no loss.

NO.68 What could a financial organisation make primary use of, to assess whether its risk management systems are likely to fail?

Key control indicators.

Key risk indicators.

Silo-based risk management.

Physical inspections.

Explanation
Key risk indicators are metrics that provide information about potential changes in the level of risk exposure3.
They can help an organisation monitor and manage its risks more effectively. Key control indicators are metrics that measure the performance of internal controls4.

NO.69 Which step is the risk process steps to manage, control, or remediate risk?

Risk avoidance

Risk identification

Risk evaluation

Risk treatment

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.

NO.70 What is typically the day-to-day responsibility of a Chief Risk Officer within a large organisation?

Ensuring that all key risks are adequately managed and reported.

Preparing and maintaining individual insurance arrangements

Producing policies on compliance matters

Providing assurance that individual risk management processes are effective.

Explanation
The day-to-day responsibility of a Chief Risk Officer within a large organisation is to ensure that all key risks are adequately managed and reported4. This involves overseeing the implementation of risk management policies, processes and systems across the organisation.

NO.71 Risk management as defined by OCEG GRC model is:

Capability to set and evaluate performance against objectives

Capability to proactively identify, assess and address uncertainty and potential obstacles to achieving objectives

Capability to proactively encourage and ensure compliance with established policies and boundaries

Explanation
According to 1, OCEG GRC model is “a framework for integrating governance, risk management, compliance and ethics/culture into a single capability”. It defines risk management as “the capability that enables an organization to understand how uncertainty affects its ability to achieve objectives” 2.

NO.72 Risk management is a strategic management process.

True

False

Explanation
Risk management is a strategic management process . Risk management helps organizations to align their objectives, strategies, and actions with their external and internal environment.

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GAQM 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 setting. ISO-31000-CLA exam covers topics such as risk management principles and framework, risk assessment and analysis, risk evaluation and treatment, risk communication and consultation, and risk monitoring and review. ISO-31000-CLA exam is also designed to test the candidate’s ability to manage risk at a strategic level and to integrate risk management into the organization’s overall management system.

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ISO-31000-CLA Practice Tests

[Q55-Q72] Latest ISO-31000-CLA Practice Test Questions Verified Answers As Experienced in the Actual Test!

Related Certifications

CSM-001
CDCP-001
ISO-31000-CLA
CDCS-001