PECB ISO-31000-CLA Online Practice Questions and Exam Preparation

PECB ISO-31000-CLA Online Questions & Answers

• Question 1:

  Which of the following is a process with inputs, activities, and outcomes?

  A. Risk management
  B. Quality management
  C. Financial management
  D. Relations management
  A. Risk management

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  explanation:

  Risk management is a process with inputs, activities, and outcomes . The inputs are the organization's 1 context and risk criteria. The activities are risk identification, analysis, evaluation, and treatment. The outcomes are improved decision making, performance, and resilience.

• Question 2:

  Which of the following consists of risk management principles, framework, and process that have been adopted as a national risk management standard by more than 60 countries?

  A. ISO 9001:2015
  B. ISO 27001:2013
  C. ISO 31000:2018
  D. ISO 14001:2018
  C. ISO 31000:2018

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  explanation:

  ISO 31000:2018 consists of risk management principles, framework, and process that have been adopted as a national risk management standard by more than 60 countries23. It provides guidelines on managing any type of risk faced by organizations.

• Question 3:

  Which plan provides a roadmap on how the treatment options will be deployed?

  A. Vison
  B. Static
  C. Fixed
  D. Treatment
  D. Treatment

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  explanation:

  Treatment plan provides a roadmap on how the treatment options will be deployed . Treatment plan helps to 3 define the objectives, scope, responsibilities, resources, timeframe, and monitoring mechanisms for implementing risk treatment actions.

• Question 4:

  Risk management professionals conduct supply-chain analyses to identify

  A. contingent business interruption coverage.
  B. customer technology needs.
  C. international regulatory requirements.
  D. potential vulnerabilities to the organization.
  D. potential vulnerabilities to the organization.

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  explanation:

  According to page 12 of the source, risk management professionals conduct supply chain analysis to identify potential vulnerabilities to the organization. These vulnerabilities can arise due to supplier dependency, breakdowns or disruptions in the supply chain, natural or human-made disasters, political or social instability, cyberattacks or other threats. Identifying such risks is crucial to prevent adverse impacts on the organization's operations, reputation or financial position.

• Question 5:

  The accuracy and reliability of the risk assessment should be identified as clearly as possible.

  A. True
  B. False
  A. True

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  explanation:

  The accuracy and reliability of the risk assessment should be identified as clearly as possible . This helps to 1 communicate the level of confidence in the risk assessment results and to inform decision-making.

• Question 6:

  Which of the following is an important aspect with stakeholders, customers, and interested parties is the essential element for maintaining the relevance of enhanced risk management within the structure of a changing context?

  A. Interviews
  B. Communication
  C. Brainstorming
  D. Session Storming
  B. Communication

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  explanation:

  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 context . Communication helps to 3 establish trust, transparency, accountability, and feedback mechanisms for risk management.

• Question 7:

  Risk management as defined by OCEG GRC model is:

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

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  explanation:

  According to , OCEG GRC model is "a framework for integrating governance, risk management, compliance 1 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

• Question 8:

  Which two of the following are types Integrated Processes? (Choose two)

  A. People processes
  B. Soft processes
  C. Hard process
  D. Quality analysis
  A. People processes
  C. Hard process

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  explanation:

  People processes and hard processes are two types of integrated processes . People processes involve human 3 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.

• Question 9:

  Which type of risk management technique does insurance belongs to?

  A. Sharing
  B. Reduction
  C. Retention
  A. Sharing

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  explanation:

  According to , page 16-17, insurance belongs to sharing technique which is "a way of transferring some or all financial consequences associated with a particular exposure". It involves paying a premium in exchange for compensation in case of loss.

• Question 10:

  Which of the following significant risks of reporting are outside the risk appetite of the organization and can impact compliance, which may also be reportable to regulatory agencies? (Choose two)

  A. External
  B. Vision
  C. Internal
  D. Dynamic
  E. Functional
  A. External
  C. Internal

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  explanation:

  External and internal risks are significant risks of reporting that are outside the risk appetite of the organization and can impact compliance, which may also be reportable to regulatory agencies . These risks may arise from 1 external factors such as market changes, natural disasters, or cyberattacks, or internal factors such as human errors, fraud, or system failures.