IAM IAM-Certificate Question Answer
Risk is best described as:
The effect of uncertainty on an organisation's objectives
An organisation's tolerance to uncertainty
An organisation's appetite to uncertainty
The effect of meeting an organisation's objectives
The impact of uncertainty
This is theISO 31000 and ISO 55000 definition of risk. Risk encompassesboth threats and opportunities—any uncertainty that may affect objectives.
Exact Extract from ISO 55000:2014, Clause 3.2.21 – Risk:
“Risk: Effect of uncertainty on objectives.”
TESTED 02 Jan 2026
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