ISO-31000-CLA Exam Dumps - ISO 31000 - Certified Lead Risk Manager

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.

A fire occurring in a new manufacturing process line is an example of a pure risk, which is a situation that can only end in a loss12. For example, the fire could damage property, injure workers or disrupt operations.

Residual risk is the type of risk that remains after risk treatment has been applied1. Residual risk reflects the remaining exposure or uncertainty after taking into account existing controls.

The ISO 31000:2018 standard provides a framework for risk management, with a focus on the strategic and integrated aspects of risk management. It outlines principles, a framework, and a process for managing risk in organizations of all kinds. The focus of the standard is on aligning risk management with the organization’s context, objectives, and strategy, and on integrating risk management into all aspects of an organization’s governance, culture, and performance. 

The Chief Risk Officer chairs the ERM/RM steering committee. The ERM/RM steering committee oversees the organization’s risk management activities and provides guidance and support to senior management.

Human element is often the biggest challenge in risk implementation. Human element involves overcoming resistance to change, engaging stakeholders, building trust and commitment, and fostering a positive risk culture.

Risk management is a strategic management process2. Risk management helps organizations to align their objectives, strategies, and actions with their external and internal environment.

According to 1, page 9, pure risk is “a situation where there are only two possible outcomes: loss or no loss”. Buying lottery tickets and selling a house are examples of speculative risk, where there is a possibility of gain or loss. Going horse riding without a helmet is an example of pure risk, where there is only a possibility of loss (injury) or no loss.

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 management is a process with inputs, activities, and outcomes1. The inputs are the organization’s context and risk criteria. The activities are risk identification, analysis, evaluation, and treatment. The outcomes are improved decision making, performance, and resilience.

There are nine risk management principles in ISO 31000:2018. These principles are:

• Integrated
• Structured and comprehensive
• Customized
• Inclusive
• Dynamic
• Best available information
• Human and cultural factors
• Continual improvement