[Full-Version] 2023 New ISO-31000-CLA Actual Exam Dumps, GAQM Practice Test
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The ISO 31000 - Certified Lead Risk Manager certification exam is a comprehensive assessment that covers all aspects of risk management, including risk identification, assessment, evaluation, treatment, and monitoring. ISO-31000-CLA exam also covers the ISO 31000 standard, which is a globally recognized risk management framework that provides guidance on how organizations can effectively manage risk. ISO 31000 - Certified Lead Risk Manager certification program aims to equip candidates with the necessary knowledge and skills to implement the ISO 31000 standard in their organizations and help them achieve their risk management objectives.
NEW QUESTION # 29
The risk management landscape has changed dramatically in recent history because of changes in all but which of the above?
- A. Globalization
- B. Finance
- C. Technology
- D. Global warming
Answer: D
Explanation:
Explanation
According to , page 3, some of the drivers for change in risk management landscape include technology (such as digitalization, automation, artificial intelligence), globalization (such as increased interdependence, complexity and diversity), finance (such as financial crises, regulations, standards) but not global warming.
NEW QUESTION # 30
Which of the following are two ISO 31000:2018 risk management principles? (Choose two)
- A. Functional
- B. Integrated
- C. Strategy
- D. Design
- E. Statistical
- F. Customized
Answer: B,F
Explanation:
Explanation
Integrated and customized are two of the nine risk management principles in ISO 31000:20181. Integrated means that risk management is an integral part of all organizational activities. Customized means that risk management is aligned with the organization's external and internal context and risk profile.
NEW QUESTION # 31
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 4.
- B. 2 and 3.
- C. 1 and 2.
Answer: B
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 # 32
A systemic risk involves:
- A. A risk that an event will cause multiple key people in an organization to leave at once
- B. A risk that all of the current suppliers of an organization's inputs will be unable to produce the inputs
- C. A risk that loss in one area of an organization may cause loss in another area of the organization
- D. A potential major disruption in the function of an entire market or financial system
Answer: D
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 # 33
What could a financial organisation make primary use of, to assess whether its risk management systems are likely to fail?
- A. Physical inspections.
- B. Silo-based risk management.
- C. Key risk indicators.
- D. Key control indicators.
Answer: C
Explanation:
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.
NEW QUESTION # 34
The ISO 31000:2018 process can be used to identify stakeholder risk requirements, needs, and expectations.
- A. True
- B. False
Answer: A
Explanation:
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 # 35
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. Communication
- B. Brainstorming
- C. Interviews
- D. Session Storming
Answer: A
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 # 36
A risk management professional advises management on the status of key risks by
- A. providing insights into the changing characteristics of a risk.
- B. providing information about competitors' risk management plan.
- C. summarizing internal audit reports.
- D. annually identifying the inventory of risks.
Answer: A
Explanation:
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.
NEW QUESTION # 37
Risk management takes human and cultural factors into account.
- A. True
- B. False
Answer: A
Explanation:
Explanation
Risk management takes human and cultural factors into account . Human factors include perception, judgment, behavior, and communication that influence risk management. Cultural factors include values, beliefs, norms, and expectations that shape the organization's risk culture.
NEW QUESTION # 38
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)
- A. Functional
- B. Vision
- C. Dynamic
- D. Internal
- E. External
Answer: D,E
Explanation:
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 # 39
Which two of the following are types Integrated Processes? (Choose two)
- A. Hard process
- B. Quality analysis
- C. Soft processes
- D. People processes
Answer: A,D
Explanation:
Explanation
People processes and hard processes are two types of integrated processes3. People processes involve human factors such as culture, values, ethics, and behavior that influence risk management. Hard processes involve technical aspects such as methods, tools, techniques, and systems that support risk management.
NEW QUESTION # 40
Which element is often the biggest challenge in risk implementation?
- A. human
- B. computation
Answer: A
Explanation:
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 # 41
__________ and___________ can result in artifacts and records.
- A. MOS, SMOS
- B. RBPS, RBDM
- C. TDMS, VSMS
- D. DBMS, RDBMS
Answer: D
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 # 42
Which of the following statement about operations risk management is incorrect?
- A. Disregarding human factors
- B. Transparent and inclusive
- C. Dynamic, iterative and responsive to change
- D. Capable of continual improvement and enhancement
Answer: A
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 # 43
Risk management is a strategic management process.
- A. True
- B. False
Answer: A
Explanation:
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.
NEW QUESTION # 44
How many types of potential risk strategies exist?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
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 # 45
What is typically the day-to-day responsibility of a Chief Risk Officer within a large organisation?
- A. Producing policies on compliance matters
- B. Ensuring that all key risks are adequately managed and reported.
- C. Preparing and maintaining individual insurance arrangements
- D. Providing assurance that individual risk management processes are effective.
Answer: B
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 # 46
A train has crashed and is badly damaged. There have been numerous claims from injured passengers as well as a loss of revenue for the train operator. This is an example of
- A. risk severity.
- B. risk categorisation.
- C. risk aggregation.
- D. risk probability.
Answer: C
Explanation:
Explanation
A train crash and its consequences is an example of risk aggregation, which is the combined effect of multiple risks on an organisation's objectives3. Risk aggregation can result in losses that are greater than the sum of individual losses.
NEW QUESTION # 47
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ISO 31000-CLA, or ISO 31000 - Certified Lead Risk Manager, is an internationally recognized certification program offered by the Global Association for Quality Management (GAQM). ISO 31000 - Certified Lead Risk Manager certification is designed to equip professionals with the knowledge and skills required to effectively manage risks within an organization. ISO 31000 - Certified Lead Risk Manager certification is an essential step for professionals who are seeking to advance their careers in the field of risk management.
The ISO 31000 standard is a risk management framework that provides guidelines, principles, and a process for managing risks in an organization. The ISO-31000-CLA Exam focuses on the leadership aspect of risk management and aims to validate an individual's ability to lead risk management activities and implement the ISO 31000 standard effectively. ISO 31000 - Certified Lead Risk Manager certification is ideal for professionals who work in risk management, governance, compliance, and auditing roles.
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