[2024] Use Valid New ISO-31000-CLA Questions - Top choice Help You Gain Success
ISO-31000-CLA Exam Practice Materials Collection
The ISO-31000-CLA certification exam comprises 150 multiple-choice questions that must be completed within a duration of 3 hours. ISO-31000-CLA exam is conducted in a proctored environment, and candidates must score a minimum of 70% to pass the exam. ISO-31000-CLA exam covers various topics such as risk principles and framework, risk assessment, risk treatment, risk communication, and risk monitoring.
NEW QUESTION # 47
Which step is the last part of the risk assessment process, which started with risk identification then moved to risk assessment, and finally risk evaluation?
- A. Risk avoidance
- B. Risk evaluation
- C. Risk acceptance
- D. Risk outsourcing
Answer: B
Explanation:
Explanation
the last step of the risk assessment process, which starts with risk identification, moves to risk assessment, and finally risk evaluation, is Risk evaluation.
Risk evaluation involves comparing the estimated level of risk against the risk criteria established during the risk assessment phase, to determine the significance of the risk and whether it is acceptable or not. This decision is made in consultation with stakeholders, who may provide additional context and information to inform the decision.
The American Society for Quality (ASQ) describes risk evaluation as "the process of comparing an estimated risk against given risk criteria to determine the acceptability of the risk." [1] Similarly, ISO/IEC 27001:2013 (Information technology - Security techniques - Information security management systems - Requirements) defines risk evaluation as "the process of comparing the estimated risk against given risk criteria in order to determine the significance of the risk." [2] References: [1] ASQ Glossary - Risk evaluation, https://asq.org/quality-resources/risk-evaluation [2] ISO/IEC
27001:2013, Clause 6.1.3(c), https://www.iso.org/standard/54534.html
NEW QUESTION # 48
A risk management professional advises management on the status of key risks by
- A. summarizing internal audit reports.
- B. providing insights into the changing characteristics of a risk.
- C. annually identifying the inventory of risks.
- D. providing information about competitors' risk management plan.
Answer: B
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 # 49
Enhanced risk management emphasizes the continual improvement of risk management capabilities.
- A. True
- B. False
Answer: A
Explanation:
Explanation
Enhanced risk management emphasizes the continual improvement of risk management capabilities1. This means that risk management is regularly reviewed and updated to ensure its relevance, adequacy, and effectiveness.
NEW QUESTION # 50
Which management can be used in varied and complex settings?
- A. Risk
- B. Safety
- C. Quality
- D. Crisis
Answer: A
Explanation:
Explanation
Risk management can be used in varied and complex settings . Risk management can help organizations deal with uncertainty and complexity in any type of activity, industry, or sector.
NEW QUESTION # 51
Risk management theory that considers an organization-wide approach to risk management is known as what type of approach?
- A. Cross-functional
- B. Comprehensive
- C. Interrelational
- D. Holistic
Answer: D
Explanation:
Explanation
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 uncertainty 2.
NEW QUESTION # 52
A systemic risk involves:
- A. A risk that loss in one area of an organization may cause loss in another area of the organization
- 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 an event will cause multiple key people in an organization to leave at once
- 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 # 53
Which of the following is becoming the basis for all decision making?
- A. Marketing management
- B. Risk management
- C. Quality management
- D. Crisis management
Answer: B
Explanation:
Explanation
Risk management is becoming the basis for all decision making2. Risk management helps organizations to identify opportunities and threats, evaluate alternatives, and make informed choices.
NEW QUESTION # 54
Relying on historic analysis when assessing potential risks and possible impacts implies that
- A. should adverse events occur, the impact can be accurately modelled.
- B. all significant risks can be confidently analysed.
- C. management believe that the future will behave much like the past.
Answer: C
Explanation:
Explanation
According to 1, page 19, historic analysis is "a method of risk identification based on past data". It assumes that past patterns and trends will continue in the future, which may not always be true.
NEW QUESTION # 55
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. Session Storming
- B. Brainstorming
- C. Communication
- D. Interviews
Answer: C
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 # 56
Which type of risk framework is expected to improve efficiency by aligning strategy, processes, technology and people?
- A. Governance, risk and compliance.
- B. Corporate, governance and control.
- C. Supervision, audit and compliance
- D. Controls, risk and supervision.
Answer: A
Explanation:
Explanation
A governance, risk and compliance (GRC) framework is expected to improve efficiency by aligning strategy, processes, technology and people. GRC aims to integrate these elements to achieve organisational objectives while managing risks and complying with regulations.
NEW QUESTION # 57
Which of the following statement about operations risk management is incorrect?
- A. Capable of continual improvement and enhancement
- B. Transparent and inclusive
- C. Dynamic, iterative and responsive to change
- D. Disregarding human factors
Answer: D
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 # 58
New definition of risk under ISO 31000 and 31010 is:
- A. Possibility of investment loss
- B. Probability of loss to an insurer
- C. Danger that injury, damage, or loss will occur
- D. Probability of an event that will have an impact on objectives
Answer: D
Explanation:
Explanation
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.
NEW QUESTION # 59
Risk management as defined by OCEG GRC model is:
- A. Capability to proactively encourage and ensure compliance with established policies and boundaries
- B. Capability to proactively identify, assess and address uncertainty and potential obstacles to achieving objectives
- C. Capability to set and evaluate performance against objectives
Answer: B
Explanation:
Explanation
According to 1, OCEG GRC model is "a framework for integrating governance, risk management, compliance and ethics/culture into a single capability". It defines risk management as "the capability that enables an organization to understand how uncertainty affects its ability to achieve objectives" 2.
NEW QUESTION # 60
A broker is undertaking a business interruption review on behalf of a client. This would most commonly include an evaluation of the
- A. level of risk tolerance.
- B. effectiveness of a business continuity plan.
- C. level of self insurance.
- D. effectiveness of risk reserving.
Answer: B
Explanation:
Explanation
A business interruption review is an evaluation of the effectiveness of a business continuity plan, which is a set of procedures and resources to ensure that an organisation can continue its critical functions in the event of a disruption12.
NEW QUESTION # 61
Which of the following are two ISO 31000:2018 risk management principles? (Choose two)
- A. Strategy
- B. Design
- C. Statistical
- D. Integrated
- E. Customized
- F. Functional
Answer: D,E
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 # 62
Which type of risk remains after risk treatment has been applied?
- A. Controlled risk
- B. Avoidance risk
- C. Accepted risk
- D. Residual risk
Answer: D
Explanation:
Explanation
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.
NEW QUESTION # 63
Treatment plan becomes a living document of defining the direction of the risk treatment and being able to monitor progress against the plan.
- A. True
- B. False
Answer: A
Explanation:
Explanation
Treatment plan becomes a living document of defining the direction of the risk treatment andbeing able to monitor progress against the plan3. Treatment plan helps to ensure that risk treatment actions are aligned with the changing context, objectives, and stakeholder expectations.
NEW QUESTION # 64
Which of the following ensures that uncertainty is managed so the organization can meet its objectives?
- A. Avoidance risk management
- B. Enhanced risk management
- C. Evasive risk management
- D. Extended risk management
Answer: B
Explanation:
Explanation
Enhanced risk management ensures that uncertainty is managed so the organization can meet its objectives4.
Enhanced risk management involves applying a systematic and logical process to identify, analyze, evaluate, treat, monitor, review, and communicate risks.
NEW QUESTION # 65
ISO 31000:2018 currently has a tactical and process focus.
- A. False
- B. True
Answer: A
Explanation:
Explanation
The ISO 31000:2018 standard provides a framework for risk management, with a focus on the strategic and integrated aspects of risk management. It outlines principles, a framework, and a process for managing risk in organizations of all kinds. The focus of the standard is on aligningrisk management with the organization's context, objectives, and strategy, and on integrating risk management into all aspects of an organization's governance, culture, and performance.
NEW QUESTION # 66
Which teams are composed of cross functional subject matter experts, risk experts, and process owners?
- A. Crisis management teams
- B. Project management teams
- C. Crisis Information teams
- D. Risk assessment teams
Answer: D
Explanation:
Explanation
Risk assessment teams are composed of cross functional subject matter experts, risk experts, and process owners. Risk assessment teams conduct risk assessments for specific areas or projects within the organization.
NEW QUESTION # 67
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