lesson 3

Question 1

a process that is used to compare risk analysis result
with risk criteria in order to determine whether or not a specified level
of risk is acceptable or tolerable

Answer 1

Risk Evaluation

Question 2

The outcome of risk evaluation should be _______, _________,
and then ________ at the appropriate levels of organization.

Answer 2

recorded, communicated,
and then validated

Question 3

a management tool which accurately assess
business exposure based on the frequency and severity of identified
potential risk.

Answer 3

Risk Evaluation Matrix

Question 4

is where both the frequency and severity of risk is low, risk
is often retain. This is a form of self-insurance, whereby the business
operator assumes and accepts a certain level of losses.

Answer 4

Risk retention

Question 5

(risk are retained by business operator
without the knowledge that
they are occurring)

Answer 5

Passive Retention

Question 6

(where risk is identified and
a decision is made to retain and
pay for any losses from
the business operator’s
own resources).

Answer 6

Active Retention

Question 7

is a risk management
technique that seeks to
reduce the possible loss of
business.

Answer 7

Risk Reduction or Loss
control

Question 8

is the
elimination of hazards,
activities and exposures that
can negatively affect an
organization and its assets.

Answer 8

Risk Avoidance

Question 9

where the frequency
of risk potential is low, but the
severity of a potential incident is high,
the most common and traditional
approach to risk mgt is transferring
the responsibility to other parties.

Answer 9

Risk Transfer