Definitions of Risk Flashcards
1
Q
What is the IRM definition of risk?
A
Risk is the combination of the probability of an event and its consequences. Consequences can range from positive to negative.
2
Q
What is Hopkin’s definition of risk?
A
An event with ability to impact (inhibit, enhance or cause doubt about) the effectiveness and efficiency of the core processes of an organisation.
3
Q
What is the Orange Book (2020) definition of risk?
A
Risk is the effect of uncertainty on objectives. Risk is usually expressed in terms of causes, potential events, and their consequences.
4
Q
What are the key themes included in a definition of risk?
A
- Uncertainty on objectives
- Probability of an event
- Consequences of an event
- Impact on achievement of objectives
- impact on efficiency and effectiveness of core processes.
