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GAQM ISO 31000 - Certified Lead Risk Manager Sample Questions (Q30-Q35):

NEW QUESTION # 30
Which risk identification involves creating alternative ways to achieve an objective?

• A. Objectives-Based
• B. Scenario Based

Answer: B

Explanation:
Explanation
According to , page 11, scenario based risk identification involves "creating different scenarios based on varying assumptions about how events might unfold". This can help explore alternative ways to achieve an objective under different circumstances.

NEW QUESTION # 31
Causes of risk include all the following except:

• A. Health, safety and environment
• B. Chemical breakdown
• C. Finance
• D. Insurance

Answer: D

Explanation:
Explanation
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 andchemical breakdown are examples of causes that can create risks for an organization or an individual 1. Insurance is not a cause but a method of transferring or mitigating some types of risks 1.

NEW QUESTION # 32
Which of the following is becoming the basis for all decision making?

• A. Marketing management
• B. Quality management
• C. Crisis management
• D. Risk management

Answer: D

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 # 33
Which of the following is considered a risk analysis technique?

• A. Consensus building
• B. Budget allocation
• C. Monte Carlo simulation
• D. Insurance placement

Answer: C

Explanation:
Explanation
Monte Carlo simulation is a risk analysis technique that uses random variables to model uncertainty and generate possible outcomes2. This helps to assess the probability and impact of different scenarios.

NEW QUESTION # 34
Which of the following is the current trend in auditing, risk management and compliance?

• A. Providing assurance over threats
• B. Front office function providing leading indicators about risk
• C. Performing discrete audits in compliance with internal control

Answer: B

Explanation:
Explanation
According to 3, 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)".

NEW QUESTION # 35
......

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