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GAQM Certification
ISO-31000-CLA Exam
GAQM.ISO-31000-CLA.v2024-01-03.q34 Dumps

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Question 31

Due to the nature of crises, the management of a Crisis Management Team (CMT) usually requires which type of decision making structure?

A.Centralized
B.Networked
C.Bottom-up
D.Consensus-based

Correct Answer: A

Explanation
According to , page 17, a crisis management team (CMT) is "a group of senior managers who have been delegated authority by an organization's executive leadership team to make decisions during a crisis". A centralized decision making structure allows for faster and more coordinated responses in an emergency situation.

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Question 32

Using the FIRM scorecard which of the following risks could a risk manager quantify?
1. Loss of income.
2. Financial gain.
3. Reputational damage.

A.1 and 2.
B.1 and 3.
C.2 and 3.

Correct Answer: A

Explanation
According to 2, FIRM scorecard is "a tool for measuring risk performance". It uses four dimensions: financial impact, internal processes, reputation and market position (FIRM). Loss of income and financial gain are examples of financial impact risks that can be quantified using monetary values or ratios. Reputational damage is an example of reputation risk that is more difficult to quantify using objective measures.

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Question 33

Which of the following are measured extensively throughout the organization and into the supply chain?

A.KPI's and KRI's
B.API's and SKD's
C.PDA's and PBA's
D.CMP's and CAD's

Correct Answer: A

Explanation
KPIs (Key Performance Indicators) and KRIs (Key Risk Indicators) are measured extensively throughout the organization and into the supply chain1. These indicators help to monitor and evaluate the performance and effectiveness of risk management.

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Question 34

Which risk is sometimes called 'retained risk.'?

A.Residual risk
B.Conceptualize risk
C.Analytical risk
D.Procedural risk

Correct Answer: A

Explanation
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 strategies 3.

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