Operational Risk Management Flashcards
1
Q
What is the primary objective of ORM?
A
to avoid unnecessary risk
2
Q
What are the 4 ORM principles?
A
- accept no unnecessary risk
- accept risks only when benefits outweigh cost
- make risk decisions at the right level
- anticipate and manage risk planning
3
Q
3 Levels of ORM
A
Time critical
Deliberate
In depth
4
Q
Which 2 levels include the 5-step process?
A
deliberate and in depth
5
Q
5 STEP PROCESS: 1st step is…
A
Identify hazards
6
Q
5 STEP PROCESS: 2nd step is…
A
Assess hazards to determine risk
7
Q
5 STEP PROCESS: 3rd step is…
A
Develop controls and make risk decisions
8
Q
5 STEP PROCESS: 4th step is…
A
Implement controls
9
Q
5 STEP PROCESS: 5th step is…
A
Supervise and evaluate
10
Q
Risk Assessment Code = _____ + _____
A
Probability + Severity = RAC
11
Q
How to measure probability
A
Likely (A),
probability (B),
may (C),
unlikely (D)
12
Q
How to measure severity
A
May cause death (I) severe injury (II) minor injury (III) minimal threat (IV)
13
Q
What are the types of controls?
A
Administrative & engineering
14
Q
Control criteria
A
suitability, feasibility, acceptability
