Chapter 2 Flashcards
Risk indetification
What is the goal of risk identification?
The goal of risk identification is to identify all potential risks that could affect the company.
Name four requirements of an ideal risk identification process.
- Completeness: All relevant risks should be identified.
- Systematicity: Identification should be structured and transparent.
- Timeliness: Risks should be identified as early as possible.
- Up-to-dateness: The process should be regularly updated to take new risks into account.
What conflicts might occur when trying to meet the requirements of an ideal risk identification process?
There may be conflicts between the requirements, e.g. between completeness and efficiency: A complete identification of all risks can be very time-consuming.
Name three methods for risk identification.
- Checklists: Systematic listing of potential risks.
- Brainstorming: Creative idea generation in a group.
- Scenario analysis: Development of future scenarios and analysis of the associated risks.
What is a fault tree analysis and how is it used in risk identification?
A fault tree analysis is a top-down, deductive failure analysis method. It starts with a potential negative event and works backwards to identify all possible causes, creating a tree-like structure of potential risks.
How can the Delphi method be used for risk identification?
The Delphi method involves gathering opinions from a panel of experts through multiple rounds of anonymous questionnaires. It can be used to identify potential risks by leveraging the collective knowledge and experience of experts in relevant fields.
What is the difference between qualitative and quantitative risk identification methods?
Qualitative methods rely on subjective judgments and descriptive scales (e.g. high/medium/low risk), while quantitative methods use numerical data and statistical analysis to identify and prioritize risks.
