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

According to ISO/IEC Guide73 (2009), clause B., causes are ''elements which alone or in combination have potential to give rise to risk''.Health, safety, environment, finance and chemical breakdown are examples of causes that can create risks for an organization or an individual1.Insurance is not a cause but a method of transferring or mitigating some types of risks1.

Risk management ensures that value is created by identifying opportunities for investment, mergers, or acquisition. Risk management helps to assess the potential benefits, costs, and risks of different options and make informed decisions.

Within an organisation, when attempting to manage and control risk, uncertainty must be taken into account4.Uncertainty refers to ''the state, even partial, of deficiency of information related to understanding or knowledge of an event''4and it influences both risks and opportunities.

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.

Recording and reporting documents information that are relevant to the organization's risk management framework, process, and system2. These activities help to provide evidence, feedback, learning, and improvement for risk management.

DBMS (Database Management System) and RDBMS (Relational Database Management System) can result in artifacts and records1. These systems are used to store, organize, and manipulate data that can be used for risk management purposes.

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.

Risk management is tailored4. Tailored means that risk management takes into account the specific needs, objectives, and characteristics of each organization and its context.

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.

ISO 31000:2018 consists of risk management principles, framework, and process that have been adopted as a national risk management standard by more than 60 countries23. It provides guidelines on managing any type of risk faced by organizations.