GAQM ISO-31000-CLA Exam Questions Instant Access

Question 1

Which type of risk management technique does insurance belongs to?

ASharing

BReduction

CRetention

Answer : A

According to , page 16-17, insurance belongs to sharing technique which is ''a way of transferring some or all financial consequences associated with a particular exposure''. It involves paying a premium in exchange for compensation in case of loss.

Question 2

What could a financial organisation make primary use of, to assess whether its risk management systems are likely to fail?

AKey control indicators.

BKey risk indicators.

CSilo-based risk management.

DPhysical inspections.

Answer : B

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.

Question 3

Which element is often the biggest challenge in risk implementation?

Ahuman

Bcomputation

Answer : A

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.

Question 4

What is typically the day-to-day responsibility of a Chief Risk Officer within a large organisation?

AEnsuring that all key risks are adequately managed and reported.

BPreparing and maintaining individual insurance arrangements

CProducing policies on compliance matters

DProviding assurance that individual risk management processes are effective.

Answer : A

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.

Question 5

Which two of the following are types Integrated Processes? (Choose two)

APeople processes

BSoft processes

CHard process

DQuality analysis

Answer : A, C

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.

Question 6

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 7

Risk management theory that considers an organization-wide approach to risk management is known as what type of approach?

ACross-functional

BComprehensive

CInterrelational

DHolistic

Answer : D

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 uncertainty2.

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