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To take the ISO-31000-CLA exam, candidates must have a minimum of five years of professional experience in risk management. They must also have completed a formal risk management training course or have equivalent experience. Candidates should also have a good understanding of ISO 31000 and its principles.
GAQM ISO-31000-CLA (ISO 31000 - Certified Lead Risk Manager) Certification Exam is a globally recognized certification exam that evaluates an individual's knowledge and understanding of risk management principles and practices. ISO-31000-CLA exam is designed for professionals who are responsible for managing risks in their organization, including risk managers, business owners, executives, and consultants. ISO 31000 - Certified Lead Risk Manager certification is widely recognized by employers and industry experts, indicating a high level of expertise in risk management.
NEW QUESTION # 18
Understanding the potential causes of risk events will primarily help an organisation to
- A. reduce the frequency of loss.
- B. comply with corporate governance standards.
- C. eliminate all risks
- D. improve internal audit procedures.
Answer: A
Explanation:
Explanation
Understanding the potential causes of risk events will primarily help an organisation to reduce the frequency of loss. This is because identifying and analysing the sources and drivers of risks can enable an organisation to implement preventive or mitigating measures.
NEW QUESTION # 19
ISO 31000 is intended to be a family of standards relating to risk management codified by the ________.
- A. OpenSource
- B. International Organization for Standardization
- C. GlobalDocument
- D. OpenDocument
Answer: B
Explanation:
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 # 20
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. Define gender equality in the school environment.
- 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. Discuss the role of girls and how they are viewed by community members.
Answer: D
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 # 21
The organization's resources and internal support are ________ the risk management strategy.
- A. inputs in the development of
- B. outcomes of the development of
- C. metrics used to measure the value of
- D. adjustable to match
Answer: A
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 # 22
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 need not be considered.
- C. uncertainty must be taken into account
- D. consideration should be given to internal controls only.
Answer: C
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 # 23
Which plan provides a roadmap on how the treatment options will be deployed?
- A. Fixed
- B. Static
- C. Vison
- 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 # 24
How many types of potential risk strategies exist?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
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 # 25
Which type of risk framework is expected to improve efficiency by aligning strategy, processes, technology and people?
- A. Supervision, audit and compliance
- B. Controls, risk and supervision.
- C. Governance, risk and compliance.
- D. Corporate, governance and control.
Answer: C
Explanation:
Explanation
A governance, risk and compliance (GRC) framework is expected to improve efficiency by aligning strategy, processes, technology and people. GRC aims to integrate these elements to achieve organisational objectives while managing risks and complying with regulations.
NEW QUESTION # 26
A systemic risk involves:
- A. A risk that loss in one area of an organization may cause loss in another area of the organization
- B. A potential major disruption in the function of an entire market or financial system
- C. A risk that all of the current suppliers of an organization's inputs will be unable to produce the inputs
- D. A risk that an event will cause multiple key people in an organization to leave at once
Answer: B
Explanation:
Explanation
According to 1, systemic risk is "the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy". It is different from other types of risks that affect only specific parts or aspects of an organization
NEW QUESTION # 27
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. Hazard management.
- C. Core processes.
Answer: C
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 # 28
Which of the following are ISO 31000:2009 Enhanced Risk Management attributes? (Choose two)
- A. Full accountability for risk controls and treatment
- B. Decision making involves risk
- C. Crisis management and process attributes
- D. Solution offering
Answer: A,B
Explanation:
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.
NEW QUESTION # 29
Which of the is a set of systematic, deliberate, and actionable steps to manage risk?
- A. Control
- B. Security
- C. Process
- D. Vision
Answer: A
Explanation:
Explanation
Control is not a set of systematic, deliberate, and actionable steps to manage risk, but rather a measure or action that modifies risk1. Process is a set of systematic, deliberate, and actionable steps to manage risk2.
Process involves establishing context, identifying risks, analyzing risks, evaluating risks, and treating risks.
NEW QUESTION # 30
As part of the ISO 31000 risk management process, 'monitoring and review' is best thought of as which of the following?
- A. A feedback loop.
- B. Part of risk assessment.
- C. An extra stage.
Answer: A
Explanation:
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 # 31
Which of the following is an important aspect with stakeholders, customers, and interested parties is the essential element for maintaining the relevance of enhanced risk management within the structure of a changing context?
- A. Session Storming
- B. Interviews
- C. Communication
- D. Brainstorming
Answer: C
Explanation:
Explanation
Communication with stakeholders, customers, and interested parties is an essential element for maintaining the relevance of enhanced risk management within the structure of a changing context3. Communication helps to establish trust, transparency, accountability, and feedback mechanisms for risk management.
NEW QUESTION # 32
Which of the following are measured extensively throughout the organization and into the supply chain?
- A. PDA's and PBA's
- B. CMP's and CAD's
- C. API's and SKD's
- D. KPI's and KRI's
Answer: D
Explanation:
Explanation
KPIs (Key Performance Indicators) and KRIs (Key Risk Indicators) are measured extensively throughout the organization and into the supply chain1. These indicators help to monitor and evaluate the performance and effectiveness of risk management.
NEW QUESTION # 33
Which of the following statement about operations risk management is incorrect?
- A. Dynamic, iterative and responsive to change
- B. Disregarding human factors
- C. Capable of continual improvement and enhancement
- D. Transparent and inclusive
Answer: B
Explanation:
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 # 34
Who is expected to take a more focused oversight role with respect to risk management control and governance process?
- A. External auditors
- B. None of the above
- C. Audit committee
- D. Internal auditors
Answer: D
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 # 35
What is typically the day-to-day responsibility of a Chief Risk Officer within a large organisation?
- A. Producing policies on compliance matters
- B. Providing assurance that individual risk management processes are effective.
- C. Ensuring that all key risks are adequately managed and reported.
- D. Preparing and maintaining individual insurance arrangements
Answer: C
Explanation:
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.
NEW QUESTION # 36
Which of the following consists of risk management principles, framework, and process that have been adopted as a national risk management standard by more than 60 countries?
- A. ISO 27001:2013
- B. ISO 9001:2015
- C. ISO 14001:2018
- D. ISO 31000:2018
Answer: D
Explanation:
Explanation
ISO 31000:2018 consists of risk management principles, framework, and process that have been adopted as a national risk management standard by more than 60 countries . It provides guidelines on managing any type of risk faced by organizations.
NEW QUESTION # 37
Which activity does the risk management professional perform immediately after obtaining internal and external information about the organization?
- A. Report the information.
- B. Organize the information
- C. Prioritize the information
- D. Analyze the information.
Answer: B
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 # 38
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The ISO-31000-CLA exam is designed for professionals who are responsible for managing risks in their organizations, including risk managers, business continuity managers, compliance officers, and security managers. ISO 31000 - Certified Lead Risk Manager certification exam evaluates the candidates' understanding of the ISO 31000 framework, including its principles, guidelines, and risk management process.
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