GAQM ISO-31000-CLA Dumps

Risk management is systematic, structured, and timely4. Systematic means that risk management follows a logical and consistent approach. Structured means that risk management has clear steps, roles, and responsibilities. Timely means that risk management provides information in time for decision making.

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 , 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 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.

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.

According to 1, systemic risk is “the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy”. It is different from other types of risks that affect only specific parts or aspects of an organization 2.

The day-to-day responsibility of a Chief Risk Officer within a large organisation is to ensure that all key risks are adequately managed and reported4. This involves overseeing the implementation of risk management policies, processes and systems across the organisation.

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.

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.

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.

according to page 15 of source 3, the development of a risk management strategy takes into account the organization's resources and internal support. These resources include factors such as human, capital, and technological resources; organizational structure, culture, and governance; communication and consultation mechanisms; and support from senior management and leadership. These inputs have an impact on the feasibility and effectiveness of the risk management strategy.

Level of risk is described in terms of consequence and likelihood. Consequence means the outcome or impact of a risk event on objectives. Likelihood means how probable it is that a risk event will occur.

According to 3, clause 6.5., monitoring and review “is intended as a feedback loop for checking whether any change has occurred either internally or externally that may affect performance against objectives”. It helps to ensure that the risk management process remains relevant and effective over time.

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.