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NEW QUESTION 29
ISO 31000 is built on 11 guiding principles. Identify THREE of these.

• A. Risk Management should address uncertainty faced by the organisation
• B. Risk Management should be done annually
• C. Risk Management should include only the Departments affected by risk
• D. Risk Management should take into account company culture
• E. Risk management can create value

Answer: A,D,E

Explanation:
Explanation
The first three sentences are true about ISO 31000. The list of the 11 principles are from p. 140. ISO 3100 is a known exam topic.

NEW QUESTION 30
Which of the following statements about binomial distribution are true? Select THREE

• A. the events of one trial will impact on the next one
• B. there are only two outcomes
• C. each trial has the same probability
• D. they are based on continuous events
• E. there is only one outcome per event

Answer: B,C,E

Explanation:
Explanation
1, 3 and 4 are the correct options. Binomial is based on discreate events not continuous and it assumes the events of each trial are independent of one another. This YouTube video explains it all perfectly using the chance that an ice-cream cone is broken. It's a nice memorable example to help you remember what binomial distribution is and how it works: https://www.youtube.com/watch?v=3EZbX2ftCUk - it's a very memorable example and really helped me. You can also see more info in the cips textbook p.131

NEW QUESTION 31
Which of the following will you put into box 5?

• A. new technology
  (Correct)
• B. forward contract
• C. outsource
• D. insurance

Answer: A

Explanation:
Explanation

New technology (ie a new web portal or payment mechanism) would help treat this risk.

NEW QUESTION 32
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