Get Real ISO-31000-CLA Exam Dumps [Aug-2023] Practice Tests [Q10-Q29] – IT Certification Exam Questions & Answers

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Get Real ISO-31000-CLA Exam Dumps [Aug-2023] Practice Tests

Last ISO-31000-CLA practice test reviews: Practice Test GAQM dumps

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.

The ISO-31000-CLA certification exam is based on the ISO 31000 standard, which provides guidelines on risk management principles and processes. The standard is applicable to any organization, regardless of its size, industry, or sector. ISO 31000 – Certified Lead Risk Manager certification exam covers various topics, including risk management principles and framework, risk assessment and analysis, risk treatment and mitigation, and risk communication and consultation. Candidates who pass the exam will have a comprehensive understanding of risk management and will be able to implement effective risk management practices within their organizations.

NEW QUESTION 10
What is the role of risk management in the strategic planning process?

Challenge the decisions made.

Develop risk treatment plans.

Draft the decisions to be made.

Identify threats and opportunities.

Explanation
According to , page 7-8, one of the roles of risk management in the strategic planning process is to identify threats and opportunities that could affect the organization’s objectives and performance.

NEW QUESTION 11
The ISO 31000:2018 process can be used to identify stakeholder risk requirements, needs, and expectations.

True

False

Explanation
The ISO 31000:2018 process can be used to identify stakeholder risk requirements, needs, and expectations4.
This is part of establishing the context for risk management, which involves defining the scope, objectives, criteria, roles and responsibilities for risk management.

NEW QUESTION 12
Which of the following statement about operations risk management is incorrect?

Transparent and inclusive

Dynamic, iterative and responsive to change

Disregarding human factors

Capable of continual improvement and enhancement

Explanation
According to ISO31000 (2018), clause 4., one of the principles of effective risk management is “taking human and cultural factors into account”. This means that risk management should consider how people’s behaviors, perceptions, values and attitudes influence or are influenced by risk .

NEW QUESTION 13
ISO 31000 is intended to be a family of standards relating to risk management codified by the ________.

OpenDocument

International Organization for Standardization

OpenSource

GlobalDocument

Explanation
According to 1, ISO 31000 is a family of standards relating to risk management codified by the International Organization for Standardization (ISO). It provides principles and guidelines on managing risks that could affect organizations.

NEW QUESTION 14
What is a primary benefit of a commercial customer self-insuring a risk?

Claims costs will reduce

Controllability of risk will increase

Its short-term cash-flow position is likely to improve.

Staff training requirements will decrease.

Explanation
A primary benefit of a commercial customer self-insuring a risk is that its short-term cash-flow position is likely to improve. This is because self-insurance reduces or eliminates insurance premiums and administrative costs associated with external insurers.

NEW QUESTION 15
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?

Decreased risk avoidance.

Decreased risk tolerance.

Increased risk elimination.

Increased risk retention.

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 16
Uncertainty leads to a changing context

True

False

Explanation
Uncertainty leads to a changing context . This means that uncertainty creates variability in outcomes and expectations, which may affect the objectives and scope of risk management.

NEW QUESTION 17
Where does an internal auditor typically spend most of his time auditing today?

People

Process

Technology

Infrastructure

Explanation
According to , page 9, one of the current trends in auditing, risk management and compliance is “shifting from auditing people to auditing processes”. This means that internal auditors focus more on how well an organization’s processes are designed and implemented to achieve its objectives and manage its risks.

NEW QUESTION 18
As part of the ISO 31000 risk management process, ‘monitoring and review’ is best thought of as which of the following?

An extra stage.

A feedback loop.

Part of risk assessment.

Explanation
According to 3, clause 6.5., monitoring and review “is intended as a feedback loop for checking whether any change has occurred either internally or externally that may affect performance against objectives”. It helps to ensure that the risk management process remains relevant and effective over time.

NEW QUESTION 19
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.

NEW QUESTION 20
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.

NEW QUESTION 21
Which of the following significant risks of reporting are outside the risk appetite of the organization and can impact compliance, which may also be reportable to regulatory agencies? (Choose two)

External

Vision

Internal

Dynamic

Functional

Explanation
External and internal risks are significant risks of reporting that are outside the risk appetite of the organization and can impact compliance, which may also be reportable to regulatory agencies1. These risks may arise from external factors such as market changes, natural disasters, or cyberattacks, or internal factors such as human errors, fraud, or system failures.

NEW QUESTION 22
Risk management is tailored.

True

False

Explanation
Risk management is tailored4. Tailored means that risk management takes into account the specific needs, objectives, and characteristics of each organization and its context.

NEW QUESTION 23
ISO uses the concept of uncertainty as the driver and rationale for risk management.

True

False

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 24
Which of the following is becoming the basis for all decision making?

Risk management

Crisis management

Quality management

Marketing management

Explanation
Risk management is becoming the basis for all decision making2. Risk management helps organizations to identify opportunities and threats, evaluate alternatives, and make informed choices.

NEW QUESTION 25
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.

1 and 4.

1 and 2.

2 and 3.

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 26
Which management can be used in varied and complex settings?

Crisis

Quality

Safety

Risk

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 27
Which of the following is a process with inputs, activities, and outcomes?

Risk management

Quality management

Financial management

Relations 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.

NEW QUESTION 28
Records and reports provide a continuing account of the risk management system.

True

False

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 29
Which of the following documents information are relevant to the organization’s risk management framework, process, and system?

Reporting and auditing

Recording and reporting

Visualizing and conceptualizing

Rationalizing and reporting

Explanation
Recording and reporting documents information that are relevant to the organization’s riskmanagement framework, process, and system2. These activities help to provide evidence, feedback, learning, and improvement for risk management.

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