Podcast
Questions and Answers
What is the primary distinction between a hazard and a risk?
What is the primary distinction between a hazard and a risk?
Food sanitation permits are recommended but not mandatory for businesses in the food industry.
Food sanitation permits are recommended but not mandatory for businesses in the food industry.
False
What are the benefits of a risk management framework?
What are the benefits of a risk management framework?
It enables identification of threats, informs planning, reduces costly surprises, improves resource allocation, and performance.
A hazard is defined as a potential source of ______.
A hazard is defined as a potential source of ______.
Signup and view all the answers
Match the following terms with their definitions:
Match the following terms with their definitions:
Signup and view all the answers
Which principle is NOT part of a good risk management framework?
Which principle is NOT part of a good risk management framework?
Signup and view all the answers
The likelihood of adverse effects linked to a hazard is labeled as risk.
The likelihood of adverse effects linked to a hazard is labeled as risk.
Signup and view all the answers
List one key question a risk management framework seeks to answer.
List one key question a risk management framework seeks to answer.
Signup and view all the answers
Which of the following is NOT a principle of risk management as defined by the International Standards Organization (ISO)?
Which of the following is NOT a principle of risk management as defined by the International Standards Organization (ISO)?
Signup and view all the answers
Risk management should be a separate process and not embedded within organizational practices.
Risk management should be a separate process and not embedded within organizational practices.
Signup and view all the answers
What is the first step of the risk assessment process?
What is the first step of the risk assessment process?
Signup and view all the answers
Risk management should be based on the best available __________.
Risk management should be based on the best available __________.
Signup and view all the answers
What should be included in a typical risk management plan?
What should be included in a typical risk management plan?
Signup and view all the answers
Human factors must not be taken into account during the risk management process.
Human factors must not be taken into account during the risk management process.
Signup and view all the answers
Name one reason why risk management should be dynamic.
Name one reason why risk management should be dynamic.
Signup and view all the answers
Match the following risk management steps with their correct descriptions:
Match the following risk management steps with their correct descriptions:
Signup and view all the answers
What is the primary focus of risk management?
What is the primary focus of risk management?
Signup and view all the answers
Risk exclusively refers to hazards in the physical safety domain.
Risk exclusively refers to hazards in the physical safety domain.
Signup and view all the answers
What is the international standard definition of risk?
What is the international standard definition of risk?
Signup and view all the answers
A risk management framework helps organizations to effectively _____ potential risks before they occur.
A risk management framework helps organizations to effectively _____ potential risks before they occur.
Signup and view all the answers
Match the following concepts with their descriptions:
Match the following concepts with their descriptions:
Signup and view all the answers
Which of the following is NOT considered a source of risk?
Which of the following is NOT considered a source of risk?
Signup and view all the answers
Risk management is only relevant for large corporations.
Risk management is only relevant for large corporations.
Signup and view all the answers
Give one example of a risk that can arise in food handling.
Give one example of a risk that can arise in food handling.
Signup and view all the answers
Study Notes
Opening Prayer
- Expresses gratitude for a wonderful day and blessings of family.
- Seeks forgiveness for sins, offering forgiveness to those who have sinned against.
- Requests guidance in learning new knowledge, values, and skills.
- Asks for joy, meaningful experiences and productive work.
- Prays for God's grace and love.
- Ends with "Amen."
Risk Management Concepts and Principles
-
Objectives:
- Gain foundational knowledge of risk management.
- Understand risk management elements.
- Recognize the significance of risk management plans, considering potential risks before they occur.
- Understand risk management framework benefits.
- Appreciate the principles of risk management.
- Comprehend the risk management process.
What is Risk Management?
- The process of identifying, assessing, and controlling threats to an organization's capital and earnings.
- Threats stem from various sources, including financial uncertainty, legal liabilities, strategic management errors, accidents, and natural disasters.
Risk Defined
- The possibility of something bad happening.
- Involves uncertainty regarding the implications of an activity concerning valued aspects like health, well-being, wealth, property, or the environment.
- Often focuses on negative or undesirable consequences.
- The international standard definition is "effect of uncertainty on objectives."
Risk (UNWTO Definition)
- A situation exposing someone or something to danger, harm, or loss.
- Can encompass physical safety matters, property loss, financial risks, and more.
- Risk attaches from the moment a person engages in business (sole proprietorship, partnership, or corporation).
Example: Food Handling
- Food handling requires careful attention to prevent contamination and food poisoning.
- Government regulations ensure businesses follow safety standards.
- Food sanitation permits are mandated for food industry businesses.
Example: Tourism and Hospitality
- Obtaining guest and clientele information is crucial for security in tourism and hospitality.
- Information gathering is considered a risk itself that requires safeguarding.
What is Hazard?
- Defined as a potential source of harm.
- Substances, events, or circumstances create hazards if they could realistically cause damage to health, life, property, or value.
- Probability of harm combined with potential harm magnitude creates risk.
Risk vs. Hazard
- Hazard: Refers to any source of potential damage, harm, or adverse health effects for something or someone.
- Risk: Refers to the chance or probability that someone will experience harm or an adverse health effect, property loss, or harmful environmental effects from encountering a hazard.
Benefits of a Risk Management Framework
- Enables the identification of threats and opportunities for an agency.
- Improves and informs the planning process.
- Reduces the likelihood of costly surprises.
- Contributes to improved resource allocation.
- Improves efficiency and performance.
- Improves accountability.
- Encourages continuous improvement.
Risk Management Framework - ISO 31000:2009
- A structured framework for risk management.
Seven Key Questions
- What are we trying to achieve?
- What events or circumstances could affect achieving our objectives?
- What are the consequences?
- How likely are these events?
- What can we do to manage these outcomes?
- How do we maximize opportunities?
- Can the organization recover if a risk eventuates?
Principles of Risk Management
- ISO principles:
- The process creates value.
- Integral part of the organizational process.
- Part of the decision-making process.
- Explicitly addresses uncertainty.
- Systematic and structured.
- Additional principles for dynamic, adaptable and inclusive processes.
- Transparency and inclusivity.
- Adaptability and change response.
- Continuous monitoring and improvement.
- Core principles alignment using best available information.
- Tailoring to specific projects.
- Acknowledging human factors.
Risk Management Process
- Identification: Brainstorming to list all possible risks.
- Planning: Develop contingency plans and implement controls.
- Derive Safeguards: Incorporate 'fallbacks' in the project plan to address potential risks.
- Monitor: Continuously track risks, both anticipated and unforeseen.
Content of a Typical Risk Management Plan
- Risk management policy statement.
- Scope and objectives.
- Consistent language and definitions.
- Integration with other practices.
- Risk assessment criteria.
- Internal/external context description.
- Analyzed risk list.
- Risk treatment plan summary.
- Risk reporting protocol outline.
- Monitoring and review program outline.
Embedding Risk Management
- Risk management should be integrated into all organizational practices and processes.
- Should be relevant, effective, and efficient.
- Embedded within policy development, business and strategic planning, and change management processes.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on the essential concepts and principles of risk management. This quiz covers foundational knowledge, the significance of risk management plans, and the risk management process. Understand how to identify, assess, and control risks to enhance organizational stability and performance.
