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GAQM ISO-31000-CLA Exam - Topic 1 Question 22 Discussion

Actual exam question for GAQM's ISO-31000-CLA exam
Question #: 22
Topic #: 1
[All ISO-31000-CLA Questions]

The Chief Risk Officer within a large manufacturing organisation has been asked by the Board of Directors to provide an example of a pure risk. A suitable example would be

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Suggested Answer: A

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.


by Hester at Nov 19, 2025, 04:39 AM

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Lore
10 hours ago
Really? I thought all risks were kinda mixed.
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Yuki
6 days ago
I think option B is more about business risk, not pure risk.
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Florinda
11 days ago
A fire in the manufacturing line is a pure risk for sure.
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Allene
16 days ago
The purchase of a currency derivative? Sounds like a risky move to me, but I guess that's the point. Gotta love those financial instruments!
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Delisa
21 days ago
C) making a strategic decision that affects the long-term future of the organisation. This is a business risk, not a pure risk.
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Jesusita
26 days ago
B) entering into a contract to purchase a new factory. This is more of a business decision than a pure risk.
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Bo
1 month ago
D) the purchase of a currency derivative. This seems like the most appropriate answer as it involves an uncertain event that could result in either a gain or a loss.
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Kerry
1 month ago
I recall that pure risks are typically insurable, which makes me think A is the best choice. The other options seem more speculative or strategic.
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Lettie
1 month ago
I’m a bit confused about pure risks. I thought they were only about accidents or natural disasters, so A seems right, but I’m not completely sure.
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Merissa
2 months ago
I remember practicing a question about risks, and I’m not sure if entering a contract is considered pure risk. It feels more like a business decision, so I’d probably rule out B.
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Earnestine
2 months ago
I think a pure risk is something that can lead to a loss without any potential gain, so I’m leaning towards option A, the fire.
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Jerry
2 months ago
I think the key here is to focus on the definition of a "pure risk" - an event that the organisation has no control over. Based on that, I'd say A is the best answer.
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Isabelle
2 months ago
A) a fire occurring in a new manufacturing process line. This is a classic example of a pure risk.
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Kristin
2 months ago
I'm a bit confused on this one. C seems like it could also be a pure risk, since a strategic decision could have unpredictable consequences for the organisation. I'll have to think this through more carefully.
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Thaddeus
3 months ago
I'm pretty confident the answer is D. The purchase of a currency derivative is a pure financial risk that the organisation is exposed to, with no ability to control the outcome.
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Danica
3 months ago
D involves financial risk, not pure risk.
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Selma
3 months ago
Hmm, I'm not sure. I was thinking B or D might be the right answer, since those involve financial risks that the organisation is directly taking on.
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Verdell
3 months ago
I think the answer is A. A fire in a new manufacturing process would be a pure risk event that the organisation has no control over.
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Ellsworth
2 months ago
I agree, A seems like the best choice.
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