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GAQM ISO-31000-CLA Exam - Topic 6 Question 31 Discussion

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
A) a fire occurring in a new manufacturing process line.
B) entering into a contract to purchase a new factory.
C) making a strategic decision that affects the long-term future of the organisation.
D) the purchase of a currency derivative.

GAQM ISO-31000-CLA Exam - Topic 6 Question 31 Discussion

Actual exam question for GAQM's ISO-31000-CLA exam
Question #: 31
Topic #: 6
[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 Gladys at Jun 27, 2026, 02:55 PM

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Benedict
4 days ago
I think a pure risk is something that can only result in a loss, so I’m leaning towards option A, the fire in the manufacturing process line.
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