Podcast
Questions and Answers
What is the primary goal of risk identification?
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?
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?
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?
What is the purpose of a risk management policy?
What is the next step after risk identification in the risk management process?
What is the next step after risk identification in the risk management process?
What is the risk treatment strategy that involves deciding not to start or continue with the activity that gives rise to the risk?
What is the risk treatment strategy that involves deciding not to start or continue with the activity that gives rise to the risk?
Which of the following risk treatment strategies involves taking or increasing risk in order to pursue an opportunity?
Which of the following risk treatment strategies involves taking or increasing risk in order to pursue an opportunity?
What is the primary goal of monitoring in the risk management process?
What is the primary goal of monitoring in the risk management process?
What is the term for the risk treatment strategy that involves removing the risk source?
What is the term for the risk treatment strategy that involves removing the risk source?
What is the purpose of communication and consultation in risk management?
What is the purpose of communication and consultation in risk management?
Which of the following risk treatment strategies involves changing the likelihood or consequences of the risk?
Which of the following risk treatment strategies involves changing the likelihood or consequences of the risk?
What is the risk treatment strategy that involves sharing the risk with another party or parties?
What is the risk treatment strategy that involves sharing the risk with another party or parties?
What is a key characteristic of the monitoring process in risk management?
What is a key characteristic of the monitoring process in risk management?
What is the ultimate goal of communication and consultation in risk management?
What is the ultimate goal of communication and consultation in risk management?
What is the focus of monitoring in the risk management process?
What is the focus of monitoring in the risk management process?
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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.
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