GAQM ISO-31000-CLA Exam Questions Instant Access

Question 1

From the three actions Tom Brown is undertaking, which is categorised as a pure risk?

ABuying 100 lottery tickets

BSelling his house even though he receives less than he paid for it because he thinks prices will fall further.

CGoing horse riding without wearing a riding helmet.

Answer : C

According to1, page 9, pure risk is ''a situation where there are only two possible outcomes: loss or no loss''. Buying lottery tickets and selling a house are examples of speculative risk, where there is a possibility of gain or loss. Going horse riding without a helmet is an example of pure risk, where there is only a possibility of loss (injury) or no loss.

Question 2

Which risk identification involves creating alternative ways to achieve an objective?

AScenario Based

BObjectives-Based

Answer : A

According to , page 11, scenario based risk identification involves ''creating different scenarios based on varying assumptions about how events might unfold''. This can help explore alternative ways to achieve an objective under different circumstances.

Question 3

What does the probability of occurrence multiplied by the impact of the event, equals to

ARisk Tangent

BRisk Scale

CRisk Level

DRisk Magnitude

Answer : D

According to , page 13-14, probability multiplied by impact equals risk magnitude which is ''a measure that reflects both likelihood and consequences''. It can be used as an indicator for prioritizing risks.

Question 4

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

AAnalyze the information.

BOrganize the information

CPrioritize the information

DReport the information.

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 5

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 6

When an operational area develops a treatment for a critical risk, the risk management professional MUST

Aadd the risk to the risk map.

Bcommunicate the treatment plan directly with internal audit.

Cevaluate the dollar savings associated with the treatment.

Devaluate the impact upon other areas.

Answer : D

When an operational area develops a treatment for a critical risk, the risk management professional must evaluate the impact upon other areas3. This helps to ensure that the treatment does not create new risks or adversely affect other objectives.

Question 7

Uncertainties may involve: (Choose two)

AThe process used to conduct the risk analysis

BThe processed to know upcoming security issues

CDiffering abilities among risk analysts

DAppointing security analyst

Answer : A, C

Uncertainties may involve the process used to conduct the risk analysis and differing abilities among risk analysts.These are examples of factors that can affect the quality and reliability of risk assessment1.

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