Podcast
Questions and Answers
What is a key reason why risk management in organisations often fails to identify and assess multiple simultaneous risks?
What is a key reason why risk management in organisations often fails to identify and assess multiple simultaneous risks?
- Risk management is only focused on independent risks
- The techniques of risk management are too complex to accommodate multiple simultaneous failures (correct)
- The human mind is not capable of processing complex risk scenarios
- The organisation's culture is not conducive to risk management
What is a key consideration for organisations in terms of managing multiple simultaneous risks?
What is a key consideration for organisations in terms of managing multiple simultaneous risks?
- Focusing on the most likely risk to occur
- Assessing the likelihood of multiple untoward events happening at the same time (correct)
- Developing a crisis management plan for individual risks
- Identifying a single critical risk that could bring down the organisation
Why is it important for organisations to consider multiple simultaneous risks?
Why is it important for organisations to consider multiple simultaneous risks?
- Because it is a best practice in risk management
- Because organisations often fail or almost fail due to multiple simultaneous risks materialising (correct)
- Because it is a requirement for audit compliance
- Because it is a key aspect of organisational culture
What is an example of multiple simultaneous risks materialising?
What is an example of multiple simultaneous risks materialising?
What is a challenge in risk management when dealing with multiple simultaneous risks?
What is a challenge in risk management when dealing with multiple simultaneous risks?
What is the role of human intuition in managing multiple simultaneous risks?
What is the role of human intuition in managing multiple simultaneous risks?
What was the consequence of the 'flight to quality' by depositors?
What was the consequence of the 'flight to quality' by depositors?
What should organisations do in addition to identifying and responding to threats?
What should organisations do in addition to identifying and responding to threats?
What can occur if an organisation misses an opportunity?
What can occur if an organisation misses an opportunity?
What did the home loans company declare to their own banks?
What did the home loans company declare to their own banks?
What is the purpose of identifying opportunities in risk management?
What is the purpose of identifying opportunities in risk management?
What is illustrated in Figure 5.15?
What is illustrated in Figure 5.15?
What is the primary purpose of a risk matrix?
What is the primary purpose of a risk matrix?
What is the difference between inherent risk and gross risk?
What is the difference between inherent risk and gross risk?
What is the term for the level of risk remaining after mitigating actions have been introduced?
What is the term for the level of risk remaining after mitigating actions have been introduced?
What is the risk appetite of an organization?
What is the risk appetite of an organization?
What happens when an organization has to accept a level of risk beyond its risk appetite?
What happens when an organization has to accept a level of risk beyond its risk appetite?
What is the benefit of plotting multiple risks on a single risk matrix?
What is the benefit of plotting multiple risks on a single risk matrix?
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