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GAQM ISO 31000 - Certified Lead Risk Manager Sample Questions (Q26-Q31):

NEW QUESTION # 26
What is the role of risk management in the strategic planning process?

  • A. Draft the decisions to be made.
  • B. Challenge the decisions made.
  • C. Identify threats and opportunities.
  • D. Develop risk treatment plans.

Answer: C

Explanation:
Explanation
According to , page 7-8, one of the roles of risk management in the strategic planning process is to identify threats and opportunities that could affect the organization's objectives and performance.


NEW QUESTION # 27
Transparency and inclusiveness are key ISO 31000:2018 attributes.

  • A. False
  • B. True

Answer: B

Explanation:
Explanation
Transparency and inclusiveness are key ISO 31000:2018 attributes. Transparency means that risk management activities are visible, understandable, and verifiable by relevant stakeholders. Inclusiveness means that appropriate stakeholders are involved in risk management decisions and actions.


NEW QUESTION # 28
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 self insurance.
  • B. level of risk tolerance.
  • C. effectiveness of risk reserving.
  • D. effectiveness of a business continuity plan.

Answer: D

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 # 29
Risk management as defined by OCEG GRC model is:

  • A. Capability to proactively identify, assess and address uncertainty and potential obstacles to achieving objectives
  • B. Capability to proactively encourage and ensure compliance with established policies and boundaries
  • C. Capability to set and evaluate performance against objectives

Answer: A

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 # 30
Due to the nature of crises, the management of a Crisis Management Team (CMT) usually requires which type of decision making structure?

  • A. Consensus-based
  • B. Centralized
  • C. Bottom-up
  • D. Networked

Answer: B

Explanation:
Explanation
According to , page 17, a crisis management team (CMT) is "a group of senior managers who have been delegated authority by an organization's executive leadership team to make decisions during a crisis". A centralized decision making structure allows for faster and more coordinated responses in an emergency situation.


NEW QUESTION # 31
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