ISO-31000-CLA practice question 10 of 35
The accuracy and reliability of the risk assessment should be identified as clearly as possible.
Full set: 100 questionsThe statement is true. According to the ISO 31000:2018 standard, a core principle of risk management is using the "best available information." This principle explicitly requires that the process takes into account any limitations and uncertainties associated with the information used. During the risk analysis phase, the availability and reliability of information are key factors that determine the complexity and detail of the analysis. Therefore, clearly identifying and communicating the accuracy and reliability of the risk assessment is essential for ensuring transparency and enabling informed decision-making based on the assessment's outputs.
B. False: This is incorrect. Neglecting to identify the accuracy and reliability of a risk assessment would violate the ISO 31000 principle of using the "best available information" and being transparent about its limitations and uncertainties.
1. ISO 31000:2018, Risk management — Guidelines, Clause 4, Principles. The principle of "Best available information" states: "The inputs to the risk management process are based on historical and current information, as well as on future expectations. Risk management explicitly takes into account any limitations and uncertainties associated with such information and expectations."
2. ISO 31000:2018, Risk management — Guidelines, Clause 6.4.3, Risk analysis. This clause notes: "Risk analysis can be undertaken with varying degrees of detail and complexity, depending on the purpose of the analysis, the availability and reliability of information, and the resources available."
3. Purdy, G. (2010). ISO 31000:2009—Setting a New Standard for Risk Management. Risk Analysis: An International Journal, 30(6), 881-886. (DOI: https://doi.org/10.1111/j.1539-6924.2010.01442.x). This article discusses how the standard emphasizes that the quality and availability of data directly influence the confidence in the risk assessment results.
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Other ISO-31000-CLA practice questions
- Question 1Which of the following consists of risk management principles, framework, and process tha…
- Question 2Which of the following is described in terms of consequence and likelihood?
- Question 3Relying on historic analysis when assessing potential risks and possible impacts implies …
- Question 4Which of the following are Critical Elements of a Risk Management Framework? (choose four)
- Question 5Which of the following statements does not apply to ISO 31000?
- Question 6ISO 31000 is intended to be a family of standards relating to risk management codified by…
