Risk Management Policy and Process

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary goal of risk identification?

To identify, recognize, and describe risks (correct)

To analyze and evaluate risks

To develop risk treatment strategies

To develop a risk management policy

What is a common source of information used in risk identification?

Historical data and expert opinions (correct)

Risk management policy statements

Stakeholder surveys and theoretical analysis

Risk treatment strategy documents

What is the term for a tangible or intangible element that has the potential to give rise to risk?

Risk

Risk cause

Risk source (correct)

Risk event

What is the purpose of a risk management policy?

To state the overall intentions and direction of an organization related to risk management Signup and view all the answers

What is the next step after risk identification in the risk management process?

Risk analysis Signup and view all the answers

What is the risk treatment strategy that involves deciding not to start or continue with the activity that gives rise to the risk?

Risk Avoidance Signup and view all the answers

Which of the following risk treatment strategies involves taking or increasing risk in order to pursue an opportunity?

Risk Taking Signup and view all the answers

What is the primary goal of monitoring in the risk management process?

To determine the status of risk performance Signup and view all the answers

What is the term for the risk treatment strategy that involves removing the risk source?

Risk Elimination Signup and view all the answers

What is the purpose of communication and consultation in risk management?

To engage in dialogue with stakeholders regarding risk management Signup and view all the answers

Which of the following risk treatment strategies involves changing the likelihood or consequences of the risk?

Risk Modification Signup and view all the answers

What is the risk treatment strategy that involves sharing the risk with another party or parties?

Risk Sharing Signup and view all the answers

What is a key characteristic of the monitoring process in risk management?

It is a continuous process Signup and view all the answers

What is the ultimate goal of communication and consultation in risk management?

To provide, share, or obtain information and engage in dialogue with stakeholders Signup and view all the answers

What is the focus of monitoring in the risk management process?

Identifying changes from the performance level required or expected Signup and view all the answers

Study Notes

Risk Management Policy

A statement that outlines the overall intentions and direction of an organization regarding risk management.

Risk Management Process

Risk Identification: a process of finding, recognizing, and describing risks.
Risk Sources: tangible or intangible elements that alone or in combination have the potential to give rise to risk.
Risk identification methods:
- Historical data
- Theoretical analysis
- Informed and expert opinions
- Stakeholder needs

Risk Management Process (Continued)

Communication and Consultation: continual and iterative processes to provide, share, or obtain information and engage in dialogue with stakeholders regarding risk management.
Monitoring: continual checking, supervising, or determining the status to identify changes from the required or expected performance level based on risk criteria.

Risk Treatment Options

Avoiding the Risk: deciding not to start or continue with the activity that gives rise to the risk.
Taking or Increasing Risk: pursuing an opportunity by taking or increasing risk.
Removing the Risk Source: eliminating the risk altogether.
Changing the Likelihood: altering the probability of the risk occurring.
Changing the Consequences: modifying the impact of the risk.
Sharing the Risk: distributing the risk with another party or parties through contracts and risk financing.
Retaining the Risk: making an informed decision to accept the risk.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Learn about risk management policy, its intentions, and direction in an organization. Understand the risk management process, including risk identification, and its components.