APICS Certified Supply Chain Professional (CSCP) — Question 175

Which of the following statements regarding ISO 31000 is correct?

Answer options

• A. It is an international standard for risk management and is intended for certification purposes.
• B. It includes guidelines for establishing internal and external risk communication processes.
• C. It is a management system standard developed to assist the financial services industry in risk mitigation.
• D. It is a mandatory standard enforced by the U.S. Securities and Exchange Commission (SEC).

Correct answer: B

Explanation

Option B is correct because ISO 31000 does provide guidelines for establishing effective internal and external risk communication processes. The other options are incorrect: A misrepresents the purpose of ISO 31000 as being for certification, C incorrectly limits its applicability to the financial services sector, and D falsely claims it is a mandatory standard enforced by the SEC.