Get GAQM ISO-31000-CLA Exam Practice Questions - Real and Updated

Answer : C

A primary benefit of a commercial customer self-insuring a risk is that its short-term cash-flow position is likely to improve. This is because self-insurance reduces or eliminates insurance premiums and administrative costs associated with external insurers.

Answer : A, C

People processes and hard processes are two types of integrated processes3. People processes involve human factors such as culture, values, ethics, and behavior that influence risk management. Hard processes involve technical aspects such as methods, tools, techniques, and systems that support risk management.

Answer : D

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.

Answer : A

According to ISO/IEC Guide73 (2009), clause B., residual risk is ''the level of remaining after controls have been applied''.It is sometimes called 'retained risk' because it represents the amount of risk that an organization decides to accept or retain after implementing its mitigation strategies3.

Answer : C

According to3, page 6, one of the current trends in auditing, risk management and compliance is ''moving from a back-office function providing lagging indicators about risk (e.g., audit findings) to a front-office function providing leading indicators about risk (e.g., key risk indicators)''.