GAQM ISO 31000 - Certified Lead Risk Manager ISO-31000-CLA Exam Practice Test

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Total 100 questions
Question 1

When defining the success measures for the organization's risk strategy, the risk management professional will include which of the following steps?



Answer : A

A review of the goals and objectives of the risk strategy is part of defining the success measures for the organization's risk strategy1. This helps to ensure that the risk strategy aligns with the organization's purpose, vision, mission and values.


Question 2

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.



Answer : C

According to3, 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 captives1.It can also access reinsurance markets to transfer some of its own risks1.It can sometimes offer greater cover than is available in the insurance market by tailoring its policies to suit its parent's needs3.It does not have to be located in the same country as its parent company; in fact, many captives are domiciled offshore for tax or regulatory reasons4.


Question 3

Which activity does the risk management professional perform immediately after obtaining internal and external information about the organization?



Answer : B

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.


Question 4

Risk management takes human and cultural factors into account.



Answer : A

Risk management takes human and cultural factors into account1. 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.


Question 5

Which type of risk remains after risk treatment has been applied?



Answer : B

Residual risk is the type of risk that remains after risk treatment has been applied1. Residual risk reflects the remaining exposure or uncertainty after taking into account existing controls.


Question 6

Who is expected to take a more focused oversight role with respect to risk management control and governance process?



Answer : A

According to3, 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.


Question 7

New definition of risk under ISO 31000 and 31010 is:



Answer : D

According to ISO/IEC Guide73 (2009), clause 1., risk is defined as ''the effect of uncertainty on objectives''. This definition applies to both ISO/IEC Guide73 (2009) and ISO31000 (2018), which are standards for risk management terminology and principles respectively.


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Total 100 questions