GAQM ISO-31000-CLA Exam Questions Instant Access

Question 1

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 2

Risk management professionals conduct supply-chain analyses to identify

Acontingent business interruption coverage.

Bcustomer technology needs.

Cinternational regulatory requirements.

Dpotential vulnerabilities to the organization.

Answer : D

According to page 12 of the source, risk management professionals conduct supply chain analysis to identify potential vulnerabilities to the organization. These vulnerabilities can arise due to supplier dependency, breakdowns or disruptions in the supply chain, natural or human-made disasters, political or social instability, cyberattacks or other threats. Identifying such risks is crucial to prevent adverse impacts on the organization's operations, reputation or financial position.

Question 3

Which of the following is considered a risk analysis technique?

ABudget allocation

BConsensus building

CInsurance placement

DMonte Carlo simulation

Answer : D

Monte Carlo simulation is a risk analysis technique that uses random variables to model uncertainty and generate possible outcomes2. This helps to assess the probability and impact of different scenarios.

Question 4

Which of the following are two ISO 31000:2018 risk management principles? (Choose two)

AIntegrated

BCustomized

CFunctional

DStatistical

EDesign

FStrategy

Answer : A, B

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.

Question 5

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?

AInternal -- Infrastructure.

BExternal -- Reputational.

CExternal -- Marketplace.

Answer : C

According to1, 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.

Question 6

A risk management professional advises management on the status of key risks by

Aannually identifying the inventory of risks.

Bproviding information about competitors' risk management plan.

Cproviding insights into the changing characteristics of a risk.

Dsummarizing internal audit reports.

Answer : C

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.

Question 7

How many types of potential risk strategies exist?

Answer : C

According to1, 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).

GAQM ISO 31000 - Certified Lead Risk Manager ISO-31000-CLA Exam Questions