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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

Show Suggested Answer Hide 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.


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Geraldine
2 days ago
Agreed, A makes sense. It's an uncontrollable event.
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Chau
7 days ago
I think A is the best choice. A fire is a pure risk.
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Valentin
12 days ago
Yeah, A is the clear choice here, no doubt about it.
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Colette
17 days ago
I think B is also risky, but not pure risk like A.
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Elsa
22 days ago
Wait, are we sure that's the only example? Seems a bit narrow.
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Craig
27 days ago
Totally agree, option A is spot on.
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Gail
1 month ago
A fire in the manufacturing line is definitely a pure risk!
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Becky
1 month ago
I’m a bit confused because I thought pure risks were more about accidents or natural disasters. I guess A makes sense, but I wonder if there are other examples we missed in our studies.
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Latosha
1 month ago
I recall a practice question where we talked about risks that only lead to loss. A fire definitely seems to fit that definition, so I would go with A as well.
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Pilar
2 months ago
I’m not entirely sure, but I remember discussing pure risks in class. I feel like option B might not fit since it involves potential gains too.
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Benedict
2 months 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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