GAQM ISO-31000-CLA Exam - Topic 5 Question 24 Discussion

Actual exam question for GAQM's ISO-31000-CLA exam

Question #: 24
Topic #: 5

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

Aa fire occurring in a new manufacturing process line.

Bentering into a contract to purchase a new factory.

Cmaking a strategic decision that affects the long-term future of the organisation.

Dthe purchase of a currency derivative.

Show Suggested Answer

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 Annamae at Mar 06, 2026, 08:16 AM

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