Questions and Answers
What is the formula to calculate the risk of an event?
Probability x Severity
What is the severity of the catastrophic destruction of the manufacturing plant?
$2,000,000,000
What is the probability of the plant being catastrophically destroyed each year?
1 in 1 million
Which of the following is NOT a common trigger for workplace violence?
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What is the annual cost of the risk to the plant due to the process malfunction?
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Which of the following situations is LEAST likely to lead to a workplace violence incident?
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Study Notes
Risk Calculation
- The annual cost of risk is calculated by multiplying the probability of an event by its severity.
- In this case, the probability of the plant being catastrophically destroyed is 1 in a million (0.000001).
- The severity of the event is $2 billion, or $2,000,000,000.
- The annual cost of the risk is $2,000 (0.000001 x $2,000,000,000).
Workplace Violence Triggers
- Common triggers of workplace violence incidents include:
- Disputes with co-workers and/or customers
- Personal financial issues
- Company layoffs
- Unfavorable performance reviews
- Perceived "unfairness"
- Substance abuse
- Personal problems
- Emotional problems
- Substance abuse and conflicts with co-workers are most likely to lead to a workplace violence incident.
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Description
This quiz calculates the annual cost of risk due to a process malfunction in a manufacturing plant, using probability and severity values.
