K1 What risk is and why it is important

Question 1

Mark Zuckerberg

Answer 1

“In a world that is changing really quickly, the ony strategy that is guarenteed to fail is not taking risks”.

Question 2

Perry and Heyes

Answer 2

“Risk is a measureable uncertainty, but uncertainty is an unmeasurable risk.”

Question 3

Flanagan and Norman

Answer 3

“Uncertainty is asituation where no historical data exists or previous history related to the situation.”

Question 4

ISO 73 & The institute of Internal Auditions definition of risk

Answer 4

“The efftect on uncertainty on objectives.”

Question 5

Compliance risk

Answer 5

Overholdelse af love og regler, for at undgå bøder og have ‘license to operate’. Uden overholdelse af compliance, riskerer man at miste license to operate.”

Question 6

Hazard risk

Answer 6

Potential harm for undining objectives in a negative way.
Needs to be managed to tolerable levels.
Occupational health and safety.

Question 7

Control risk

Answer 7

• Associated with unknown and unexpected events and
• new projects where it is knowns events will occor, but precice consequences are difficult to predict.

Question 8

Opportunity risk

Answer 8

The risk of taking the opportunity and the risk of not acting.

Spekulative risks.

Question 9

Inherent level of risk

Answer 9

Niveauet af risiko før nogle foranstaltninger er iværksat.

Question 10

Current or residual level of risk

Answer 10

Niveauet af risiko efter foranstaltninger er implimenteret.

Question 11

Target level of risk

Answer 11

Risikoi niveauet man ønsker at opnå med yderligere control measures.

Question 12

Risk likelihood og impact (Heat map)

Answer 12

Y-akse: Impact
x-akse: Likelihood

Question 13

Probability

Answer 13

Used to describe the likelihood of a risk matrilizing.

Question 14

STOC

Answer 14

Strategy
Tactics
Operations
Compliance

Question 15

Risk attitude

Answer 15

Organisations approach to assess and eventually persue, retain, takE or turn away from risk.

Question 16

Risk appetite

Answer 16

Størrelsen og typen af risici en org. er villig til at forfølge eller beholde.

Question 17

FIRM

Answer 17

Finances
Infrastructure
Reputation
Marketplace

Question 18

Impact

Answer 18

Defines how event affects FIRM

Question 19

Konsekvenser

Answer 19

Graden af begivenheden der resulterer i ændring af planlagte mål for en smart og effektiv STOC,

Question 20

Impact of hazard risks

Answer 20

Har udelukkene negative outcomes. Fokusere på helbred og sikkerhed.

Question 21

Risiko avers

Answer 21

Tends to avoid or minimize exposure to risk.

Question 22

Risiko aggresiv

Answer 22

Willing to embrace higher levels of risk in pursuit of potentially higher returns

Question 23

4P

Answer 23

People
Premises
Processes
Products