ISO-22301-Lead-Auditor Practice Exam Questions with Answers PECB Certified ISO 22301 Lead Auditor Exam Certification

Organizational activities are the actions and processes that an organization performs to achieve its objectives and deliver its products and services. These activities are exposed to innumerable threats that have the potential to compromise the achievement of corporate goals. These threats can be internal orexternal, natural or man-made, intentional or accidental, and can affect the organization’s resources, capabilities, reputation, and continuity. Some examples of threats that can disrupt organizational activities are:

• Natural disasters, such as earthquakes, floods, storms, fires, or pandemics
• Cyber-attacks, such as hacking, malware, ransomware, denial-of-service, or data breaches
• Human errors, such as mistakes, negligence, or miscommunication
• Malicious acts, such as sabotage, theft, fraud, vandalism, or terrorism
• Supply chain issues, such as delays, shortages, quality problems, or contractual disputes
• Regulatory changes, such as new laws, standards, or policies that affect the organization’s operations or compliance
• Market changes, such as shifts in customer demand, preferences, or expectations, or increased competition or innovation
• Social changes, such as changes in demographics, culture, values, or behaviors that affect the organization’s stakeholders or environment To protect against these threats and ensure the continuity of organizational activities, organizations need to implement a business continuity management system (BCMS) that follows the requirements of ISO 22301. A BCMS is a set of policies, procedures, and practices that enable an organization to prepare for, respond to, and recover from disruptions when they arise. A BCMS helps an organization to identify its critical activities, assess the risks and impacts of potential disruptions, develop strategies and plans to mitigate and manage the disruptions, and test and improve the effectiveness of the BCMS. By implementing a BCMS, an organization can enhance its resilience, reduce its losses, and maintain its reputation and customer satisfaction. References: : What is ISO 22301 standard and what is its purpose? : Building Business Resilience: A Guide to ISO 22301 Certification : ISO 22301:2019(en), Security and resilience ? Business continuity management systems ? Requirements

The Plan-Do-Check-Act (PDCA) paradigm ensures that organizations can effectively complete the full cycle of the management system, thereby achieving its intended outcomes. The PDCA cycle is a four-step iterative process that helps organizations to establish, implement, maintain, and continually improve their management systems. The PDCA cycle consists of the following phases:

• Plan: Establish the objectives and processes necessary to deliver the desired results.
• Do: Implement the processes as planned.
• Check: Monitor and measure the processes and results against the objectives and report the outcomes.
• Act: Take actions to improve the performance of the processes, if necessary. The PDCA cycle is also known as the Deming cycle, after its creator, W. Edwards Deming. The PDCA cycle is widely used in various management system standards, including ISO 22301, as it provides a structured approach to achieve continual improvement and customer satisfaction. References: ISO 22301 Auditing eBook, page 10 1; ISO 22301:2019, clause 0.3 2

A multidisciplinary function encompasses the knowledge and skills of a diverse group of professionals to manage the corporate Business Continuity Management programme.According to the ISO 22301 Auditing eBook, "Business continuity is a multidisciplinary function that involves several different departments and business units, such as IT, human resources, finance, legal, public relations, etc. Each of these departments and units has a role and responsibility in ensuring the continuity of the organization’s critical activities and processes in the event of a disruption. Therefore, a business continuity auditor needs to have a broad understanding of the various aspects and functions of the organization, as well as the specific requirements and expectations of each stakeholder group."1 References:

• ISO 22301 Auditing eBook, Chapter 2: Business Continuity Concepts and Principles, Section 2.2: Business Continuity Auditor Competencies1

According to ISO 22301 Lead Auditor objectives and content, a qualitative approach is a type of approach that has a straightforward process based on informed judgement supported by appropriate guidance. A qualitative approach is used to assess the impacts and risks of a disruption to the organization’s processes, resources, and objectives. A qualitative approach relies on the subjective evaluation of the likelihood and severity of the disruption, as well as the effectiveness of the existing controls and mitigation measures. A qualitative approach can use descriptive scales, such as low, medium, and high, to rank the impacts and risks. A qualitative approach can also use tools, such as matrices, diagrams, and checklists, to facilitate the analysis and communication of the results. A qualitative approach is suitable for organizations that have limited data, resources, or time to conduct a quantitative approach, which requires more complex and objective calculations and measurements. References: ISO 22301 Auditing eBook, page 401; ISO 22301 Clause 8.2.2 Risk assessment2

 According to the ISO 22301 Auditing eBook, there are three types of personal interview, which differ in terms of the structure, purpose and depth of information to be elicited. They are:

• Fully structured interview: This type of interview follows a predefined set of questions that are asked in a fixed order. The interviewer does not deviate from the script and does not probe for additional information. The advantage of this type of interview is that it ensures consistency and comparability of data across different interviewees. The disadvantage is that it may not capture the nuances and complexities of the interviewee’s responses, and may miss some important information that is not covered by the questions.
• Semi-structured interview: This type of interview has a general outline of topics or questions to be covered, but the interviewer has the flexibility to ask follow-up questions, clarify ambiguities, and explore new areas of interest that emerge during the conversation. The advantage of this type of interview is that it allows for a deeper and richer understanding of the interviewee’s perspectives, opinions, and experiences. The disadvantage is that it may introduce some variability and bias in the data collection and analysis, depending on the interviewer’s skills and style.
• Unstructured interview: This type of interview has no predetermined agenda or questions, and the interviewer relies on the natural flow of the conversation to guide the discussion. The interviewer may use some open-ended prompts or probes to elicit more information, but the interviewee has the freedom to express whatever they want. The advantage of this type of interview is that it can reveal unexpected and insightful information that may not be obtained through other methods. The disadvantage is that it may be difficult to manage, control, and summarize the data, and it may require more time and resources to conduct and analyze.

References: : ISO 22301 Auditing eBook, Chapter 5: Audit Techniques, Section 5.2: Personal Interview, Page 63-64.

1of30

Corporate structure outlines the management hierarchy of the organization, such as the board of directors, the executive management, the business units, the departments, the teams, and the individuals. It defines the roles, responsibilities, authorities, and accountabilities of the organizational members, as well as the reporting and communication lines. Corporate structure also reflects the organization’s culture, values, vision, mission, and strategic objectives. It is importantfor the organization to have a clear and effective corporate structure that supports the implementation and operation of the business continuity management system (BCMS) and ensures the alignment of the business continuity objectives with the strategic direction of the organization. References: ISO 22301 Auditing eBook, Chapter 2: Business Continuity Management System (BCMS), Section 2.1: Scope and Objectives, page 23.

Strategy option evaluation and selection is the strategy that supports the recovery needs of each critical product and service. This strategy involves the following steps:

• Identify the recovery options: Based on the results of the business impact analysis (BIA) and the risk assessment, identify the possible recovery options for each critical product and service. Recovery options are the alternative ways of resuming the delivery of the product or service within the recovery time objective (RTO) and the recovery point objective (RPO). Examples of recovery options are: relocating to an alternate site, activating a mutual aid agreement, using a cloud-based backup, outsourcing to a third-party provider, etc.
• Evaluate the recovery options: Assess the feasibility, effectiveness, and efficiency of each recovery option, using criteria such as: cost, availability, scalability, compatibility, security, compliance, etc. Compare the advantages and disadvantages of each option and rank them according to their suitability for meeting the recovery needs.
• Select the recovery options: Choose the best recovery option for each critical product and service, based on the evaluation results and the available resources. Ensure that the selected option aligns with the organization’s business continuity objectives, policies, and strategies. Document the rationale and justification for the selection and communicate it to the relevant stakeholders.

Strategy option evaluation and selection is the strategy that supports the recovery needs of each critical product and service, as it enables the organization to identify, evaluate, and select the most appropriate recovery option for each critical product and service, based on the BIA and the risk assessment results. This strategy helps the organization to ensure the continuity and resilience of its critical products and services in the event of a disruption, and to optimize the use of its resources and capabilities. References:

• ISO 22301 Auditing eBook, Chapter 3: Business Continuity Management System, Section 3.4.2: Business Continuity Strategy, Page 19
• ISO 22301 Auditing eBook, Chapter 5: Business Continuity Management System Audit Activities, Section 5.3.2: Audit of Business Continuity Strategy, Page 37
• ISO 22301:2019, Clause 8.3: Business Continuity Strategies and Solutions, Page 18

According to ISO 22301 Auditing eBook, Chapter 3.2.1, people-oriented objectives are the objectives that are related to shaping the attitudes, behaviours, and skills of individuals within the organization. These objectives aim to enhance the awareness, competence, and commitment of the personnel involved in the business continuity management system (BCMS). Some examples of people-oriented objectives are:

• To increase the level of business continuity awareness among all employees by conducting regular training and awareness sessions.
• To ensure that all business continuity roles and responsibilities are clearly defined and communicated to the relevant personnel.
• To develop and maintain the necessary skills and knowledge for performing business continuity tasks and activities.
• To foster a culture of business continuity within the organization that encourages participation, collaboration, and continuous improvement.

People-oriented objectives are important for ensuring that the organization has the human resources required for implementing and maintaining the BCMS, and for achieving the desired business continuity performance and results. References: ISO 22301 Auditing eBook, Chapter 3.2.1.

Regulatory compliance is the adherence to laws, regulations, guidelines and specifications relevant to an organization’s business processes. It has always been a challenge to organizations since it has a significant influence on corporate planning, such as strategic objectives, policies, procedures, risk management, performance measurement and improvement. Regulatory compliance can also affect the organization’s reputation, customer satisfaction, stakeholder confidence and legal liability. Therefore, organizations need to establish, implement, maintain and improve a business continuity management system (BCMS) that meets the requirements of ISO 22301 and other applicable regulations. References: ISO 22301 Auditing eBook, Chapter 1: Introduction to Business Continuity Management Systems (BCMS), Section 1.2: Regulatory Compliance, page 9.

A formal management system is a type of management system that provides the means for organizations to improve internal controls and management competence. A formal management system is a documented system that defines the policies, objectives, processes, procedures, roles, responsibilities, and resources for managing a specific aspect of the organization’s performance. A formal management system is based on a recognized standard or framework that specifies the requirements and best practices for achieving the desired outcomes and performance. A formal management system also includes mechanisms for monitoring, measuring, reviewing, and improving the system’s effectiveness and efficiency. A formal management system helps the organization to demonstrate its commitment and capability to meet the expectations and needs of its stakeholders, such as customers, regulators, employees, suppliers, etc. A formal management system also helps the organization to identify and manage the risks and opportunities that may affect its performance and continuity. Examples of formal management systems are ISO 22301 for business continuity management, ISO 9001 for quality management, ISO 14001 for environmental management, ISO 27001 for information security management, etc. References:

• ISO 22301 Auditing eBook, Chapter 1: Introduction to Business Continuity Management Systems, Section 1.1: Management System Concepts1
• What is a management system?2
• ISO - Management system standards3

 Deliverables are the specific tasks, products, or outcomes that are required in order to complete the project. They are the tangible and measurable results of the project activities, and they should be aligned with the project objectives and scope. Deliverables can be classified into two types: project deliverables and process deliverables. Project deliverables are the outputs that directly contribute to the achievement of the project goals, such as reports, plans, documents, software, hardware, etc. Process deliverables are the outputs that support the management and execution of the project, such as schedules, budgets, risk assessments, audits, etc. Deliverables should be clearly defined, agreed upon, and accepted by the project stakeholders, and they should be monitored and controlled throughout the project lifecycle. According to ISO 22301, some of the deliverables for implementing a business continuity management system (BCMS) are: business continuity policy, business continuity objectives, business impact analysis, risk assessment and treatment, business continuity strategy, business continuity plans, business continuity procedures, performance indicators, audit reports, corrective actions, etc. References: ISO 22301 Auditing eBook, Chapter 3: Planning the BCMS, Section 3.1: Project Management, page 39. ISO 22301 Auditing eBook, Chapter 3: Planning the BCMS, Section 3.2: Project Deliverables, page 40.

The outgoing commitment from executive management helps to embed a positive business continuity culture within the organization by demonstrating leadership and support for the business continuity management system (BCMS) and its objectives. Executive management is responsible for establishing the BCMS policy, ensuring the alignment of the BCMS with the organization’s strategic direction, providing the necessary resources for the BCMS, communicating the importance of the BCMS, and promoting continual improvement of the BCMS. Executive management also sets an example for the rest of the organization by being actively involved in the BCMS activities and ensuring accountability and responsibility for the BCMS performance. References: ISO 22301 Auditing eBook, page 27; ISO 22301:2019 standard, clause 5.1

 Business Impact Analysis (BIA) is a process of identifying and evaluating the potential impacts of disruptions to critical business processes, systems, and resources. One of the objectives of BIA is to validate the dependencies of the organization’s essential functions and operations. Dependencies are the relationships or interconnections between the organization and its internal or external stakeholders, such as suppliers, customers, partners, regulators, etc. Dependencies can affect the organization’s ability to deliver its products and services, and therefore, they need to be considered in the BIA process. According to ISO/TS 22317:2021, there are two types of dependencies that are validated by BIA: internal dependencies and external dependencies1. Internal dependencies are the dependencies within the organization, such as between different functions, processes, activities, resources, or locations. For example, a production function may depend on the supply of raw materials from a warehouse, or a finance function may depend on the availability of an accounting system. Internal dependencies can be identified by analyzing the inputs and outputs of each function or process, and the resources required to support them. External dependencies are the dependencies outside the organization, such as with suppliers, customers, partners, regulators, or other stakeholders. For example, a retail company may depend on the delivery of goods from its suppliers, or a bank may depend on the compliance with regulatory requirements. External dependencies can be identified by analyzing the contracts, agreements, or expectations with the external parties, and the potential impacts of their failure or disruption. References:

• ISO/TS 22317:2021, clause 6.3.2

ISO 22301:2019 is the international standard for business continuity management systems (BCMS). It specifies the requirements for establishing, implementing, maintaining, and improving a BCMS that enables an organization to prepare for, respond to, and recover from disruptive incidents. ISO 22301:2019 consists of 13 sections and 2 supporting sections. The 13 sections are:

• Scope: This section defines the scope and applicability of the standard and its intended outcomes.
• Normative references: This section lists the normative references that are indispensable for the application of the standard, such as ISO 31000 and ISO/IEC 27000.
• Terms and definitions: This section provides the definitions of the terms used in the standard, such as business continuity, incident, and risk.
• Context of the organization: This section requires the organization to determine its internal and external issues, the needs and expectations of its interested parties, and the scope and boundaries of its BCMS.
• Leadership: This section requires the top management to demonstrate leadership and commitment, establish the business continuity policy and objectives, assign roles and responsibilities, and support the BCMS.
• Planning: This section requires the organization to plan actions to address risks and opportunities, achieve the business continuity objectives, and integrate the BCMS into its business processes.
• Support: This section requires the organization to provide the necessary resources, competence, awareness, communication, and documented information to support the BCMS.
• Operation: This section requires the organization to implement the operational planning and control, conduct the business impact analysis and risk assessment, determine the business continuity strategy and solutions, establish and implement the business continuity procedures, and exercise and test the BCMS.
• Performance evaluation: This section requires the organization to monitor, measure, analyze, and evaluate the performance and effectiveness of the BCMS, conduct internal audits, and review the BCMS at planned intervals.
• Improvement: This section requires the organization to identify and implement opportunities for improvement, address nonconformities and take corrective actions, and continually improve the BCMS.
• Annex A: This section provides informative guidance on the relationship between the clauses of ISO 22301:2019 and ISO 22313:2020, which is the international standard for business continuity management systems - guidance on the use of ISO 22301.
• Annex B: This section provides informative guidance on the relationship between the clauses of ISO 22301:2019 and ISO 31000:

According to the ISO 22301 Auditing eBook, there are five types of strategies involved in the process-centric approach to business continuity management. They are:

• Business continuity strategy: This is the overall approach that provides a framework for ensuring the continuity of an organization’s critical functions in the event of a disruption. It defines the objectives, scope, principles, and policies of the business continuity management system (BCMS).
• Recovery strategy: This is the specific approach that defines how an organization will restore its critical functions within a predefined time frame after a disruption. It identifies the resources, actions, and procedures required to recover the critical functions and resume normal operations.
• Continuity strategy: This is the specific approach that defines how an organization will maintain its critical functions during a disruption. It identifies the alternative arrangements, methods, and modes of operation that will enable the organization to continue delivering its products or services at an acceptable level of performance.
• Mitigation strategy: This is the specific approach that defines how an organization will reduce the likelihood and/or impact of a disruption. It identifies the preventive and protective measures that will minimize the exposure and vulnerability of the organization to potential threats and risks.
• Response strategy: This is the specific approach that defines how an organization will react to a disruption. It identifies the roles, responsibilities, and authorities of the incident management team, the communication channels and protocols, and the escalation and notification procedures.

References: ISO 22301 Auditing eBook, pages 40-42

Coordination is the process of planning and arranging BCM tasks into a proper order of relationship to achieve the defined outcomes. Coordination involves establishing the roles and responsibilities of the BCM team, the stakeholders, and the external parties, as well as defining the communication channels and protocols. Coordination also ensures that the BCM activities are aligned with the organizational objectives, policies, and procedures, and that the BCM resources are allocated and utilized efficiently and effectively. References: ISO 22301 Auditing eBook, page 281

The draft report is not amended according to the feedback provided by the respondents, but rather according to the audit team leader’s judgment and discretion. The feedback from the respondents is only one of the inputs that the audit team leader considers when finalizing the audit report. The audit team leader has the ultimate responsibility and authority to decide on the content and conclusions of the audit report, based on the audit evidence and audit criteria. The audit team leader should ensure that the audit report is accurate, objective, clear, concise, constructive, and timely1.

References: 1: ISO 22301 Auditing eBook, Chapter 8: Closing an ISO 22301 Audit, Section 8.2: Finalizing the Audit Report, Page 128.

The collection of corporate information provides evidence on the state of organizational preparedness, as it allows the organization to assess its currentcapabilities, resources, and performance in relation to its business continuity objectives and requirements. Corporate information includes documents, records, data, and other types of information that are relevant to the organization’s business continuity management system (BCMS). By collecting and analyzing corporate information, the organization can identify its strengths, weaknesses, opportunities, and threats, and determine the gaps and areas for improvement in its BCMS. Corporate information also helps the organization to monitor and measure the effectiveness and efficiency of its BCMS, and to demonstrate its compliance with the ISO 22301 standard and other applicable regulations and standards. References: ISO 22301 Auditing eBook, page 34; ISO 22301:2019 standard, clause 9.1

Succession planning is the type of planning that minimizes impacts due to the unavailability of key staff. Succession planning is a process of identifying and developing potential successors for key positions in an organization. It helps to ensure the continuity of leadership and critical skills in the event of staff turnover, retirement, resignation, illness, death, or any other cause of unavailability. Succession planning is an important component of business continuity management, as it helps to reduce the risk of disruption and loss of performance due to the loss of key staff. Succession planning also helps to retain and motivate high-potential employees, as well as to enhance the organization’s reputation and attractiveness as an employer. Succession planning should be aligned with the organization’sstrategic objectives, culture, and values. It should also be based on a systematic assessment of the current and future needs of the organization, as well as the competencies and potential of the existing and prospective staff. Succession planning should involve the participation and commitment of senior management, human resources, and the relevant staff. It should also be reviewed and updated regularly to reflect the changing circumstances and needs of the organization. References:

• ISO/TS 30433:2021 - Human resource management — Succession planning metrics cluster1
• ISO 22301 Auditing eBook, Chapter 2: Business Continuity Concepts and Principles, Section 2.4: Business Continuity Strategy2
• ISO 22301:2019 - Security and resilience — Business continuity management systems — Requirements, Clause 7.2: Competence3

Maintenance is the activity that ensures that the programme and its components remain in line with the organization’s overall strategy. Maintenance involves monitoring and reviewing the performance and effectiveness of the programme, identifying and implementing improvements, and ensuring alignment with the changing needs and expectations of the organization and its stakeholders. Maintenance is an essential part of the programme management cycle, as it helps to ensure that the programme delivers the intended benefits and outcomes, and that the programme remains relevant and adaptable to the changing environment. Maintenance is also a requirement of ISO 22301, the international standard for business continuity management systems (BCMS). According to ISO 22301, the organization shall establish, implement and maintain a process for continual improvement of the BCMS, which includes evaluating the need for changes to the BCMS, and ensuring that the BCMS remains suitable, adequate and effective1. References:

• ISO 22301:2019, clause 10.2

A documentary review is a type of review that involves examining documents, records, or other forms of evidence related to the audit criteria and objectives. It can often be used as a secondary method to support other forms of information collection methods, such as interviews, observations, or sampling. A documentary review can help to verify the existence, implementation, and effectiveness of the audited processes, activities, or controls. It can also provide useful information about the context, scope, and objectives of the audit, as well as the roles and responsibilities of the auditees and other relevant parties. References: ISO 22301 Auditing eBook, page 611; ISO 19011:2018, clause 6.3.22

Suppliers are the role associated with specialist services offered by third parties, such as consultants, trainers, auditors, or certification bodies. Suppliers can provide external support and expertise to the organization in developing, implementing, maintaining, and improving its BCMS. Suppliers can also help the organization to demonstrate its conformance and competence to interested parties, such as customers, regulators, or investors. Suppliers are one of the key stakeholders of the BCMS, as they can influence or be influenced by the organization’s business continuity performance and objectives. References: ISO 22301 Auditing eBook, page 12 1; ISO 22301:2019, clause 4.2 2

Leadership prepares the organization before and during an incident by establishing the business continuity policy, objectives, and roles and responsibilities, ensuring the alignment of the business continuity management system (BCMS) with the organization’s strategic direction, providing the necessary resources and support for the BCMS, communicating the importance of effective business continuity management to all interested parties, and promoting continual improvement of the BCMS. Leadership also demonstrates commitment and accountability for the BCMS performance, ensures the integration of the BCMS requirements into the organization’s processes, reviews and evaluates the BCMS suitability, adequacy, and effectiveness, and ensures that the organization’s business continuity needs and exp

 The scope of the business continuity management system (BCMS) is the statement that defines the boundaries and applicability of the BCMS. It specifies which products, services, processes, locations, and organizational units are covered by the BCMS, as well as any exclusions or limitations. The scope should document and explain any exclusions, which are the products, services, or processes that are not within the scope of the BCMS. Exclusions may be justified for various reasons, such as:

• The products, services, or processes are not critical to the organization’s operations and objectives.
• The products, services, or processes are already covered by other management systems or plans.
• The products, services, or processes are outside the organization’s control or influence.
• The products, services, or processes are not relevant or applicable to the organization’s context or needs.

However, the exclusions should not affect the organization’s ability to provide products and services that meet the requirements and expectations of its interested parties. The exclusions should also not compromise the conformity of the BCMS with the requirements of ISO 22301, the international standard for business continuity management systems. The scope and the exclusions should be documented in a clear and concise manner, and communicated to all relevant stakeholders. The scope and the exclusions should also be reviewed and updated regularly to reflect the changing circumstances and needs of the organization. References:

• ISO 22301:2019 - Security and resilience — Business continuity management systems — Requirements, Clause 4.3: Determining the scope of the business continuity management system1
• ISO 22301 Auditing eBook, Chapter 3: Business Continuity Integration, Section 3.1: Business Continuity Integration Levels2
• ISO 22301 Clause 4.3 Determining the Scope of the Business Continuity Management System3

A quality audit verifies that the BCM programme activities are adequately managed through conformance to the BCMS requirements, policies, and procedures. It also evaluates the effectiveness and efficiency of the BCMS processes and the continual improvement of the BCMS performance. A quality audit can be internal or external, depending on the source of the audit. References: ISO 22301 Auditing eBook, page 19 1; ISO 22301:2019, clause 9.2 2