Free GAQM ISO-31000-CLA Practice Exam with Questions & Answers | Set: 3

According to , page 4, a holistic approach to risk management is “one that considers all sources and types of risks across all organizational units and activities”. It aims to integrate governance, strategy, performance, culture and ethics into a coherent framework for managing uncertainty 2.

Records and reports provide a continuing account of the risk management system2. They help to monitor and review the performance and effectiveness of risk management.

 Risk treatment is the risk process step to manage, control, or remediate risk1. Risk treatment involves selecting and implementing options to modify or control risks.

Communication with stakeholders, customers, and interested parties is an essential element for maintaining the relevance of enhanced risk management within the structure of a changing context3. Communication helps to establish trust, transparency, accountability, and feedback mechanisms for risk management.

According to , page 8, hazard risk is “the traditional pure risk that only has a downside”. It is usually associated with natural disasters, accidents, lawsuits or other events that cause harm or damage.

According to , page 9, defining the context involves “understanding what influences people’s perception and tolerance of risks”. Discussing how girls are viewed by community members can help identify potential sources of resistance, conflict or violence that may affect the project’s objectives and outcomes.

Chief Risk Officer (CRO) serves as the principal adviser to the CEO, business unit heads, and critical function heads on risk matter. CRO leads the development and implementation of the organization’s risk management framework and process.

Control is not a set of systematic, deliberate, and actionable steps to manage risk, but rather a measure or action that modifies risk1. Process is a set of systematic, deliberate, and actionable steps to manage risk2. Process involves establishing context, identifying risks, analyzing risks, evaluating risks, and treating risks.

A review of the goals and objectives of the risk strategy is part of defining the success measures for the organization’s risk strategy1. This helps to ensure that the risk strategy aligns with the organization’s purpose, vision, mission and values.

According to ISO 31000:2018, a risk management framework consists of four critical elements: design (B), implement (D), evaluate (E) and improve (F)5. These elements guide an organization in integrating risk management into all functions and processes.