ORA RM QUIZ 3 (M5) Flashcards
ISO 31000 considers that _____ is the main heading under which various options exist, such as:
Avoiding the risk by deciding not to start or continue with the activity,
Taking or increasing the risk in order to pursue an opportunity,
Removing the risk source;
Changing the likelihood or the consequences;
Sharing the risk with another party or parties,
Retaining the risk by informed decision.
TREAT RISK
NOTE:
RISK RESPONSES
AVOIDING
TAKING
REMOVING
CHANGING
SHARING
RETAINING
_________defines RISK TREATMENT Process of Developing, Selecting, and Implementing Controls
Note: Controls
BS 31100
_________defines RISK TREATMENT as development and implementation of measures to modify risk
NOTE: risk
ISO 3100
4 Ts of Hazard Risks
Tolerate
Treat
Transfer
Terminate
4 Ts of Hazard Risks
The exposure may be _____ without any further action being taken. Even if it is not, the ability to do anything about some risks may be limited, or the cost of taking any action may be disproportionate to the potential benefit gained.
tolerable
4 Ts of Hazard Risks
For some risks the best response may be to ______ them. This might be done by conventional insurance, or it might be done by paying a third party to take the risk in another way. This option is particularly good for mitigating financial risks or risks to assets.
transfer
4 Ts of Hazard Risks
By far the greater number of risks are addressed this way. The purpose of ______ whilst continuing within the organization with the activity giving rise to the risk, action (control) is taken to constrain the risk to an acceptable level.
TREAT
4 Ts of Hazard Risks
to reduce likelihood
Treat
risk tolerance defined by ______ as the orgs readiness to BEAR the risk after risk treatment in order to achieve its objective
guide 75
______ can be influ by legal or regul reqs
risk toler
t o f
tolr risk is norm concerned with org being willing to retain or tolr a risk, even if its higher than the org would choose to accept
t
____ is a RM strat to offset losses in investments by taking an ______ position in a related asset. the reduction in risk provided by it also typically results in a ______ in potential profits
Hedging
OPposite
reduction
_____ often be undertaken with the risk at the inherent and/or current level, so that when the risk has been treated, the new current level or target level may become tolerable.
Risk treatment
Insurance is estb. mech for _______ the financial impact of losses arising from hazard risks and to control risks
transferring
2 were considered to be risk transfer and treatment options
R. hedging and Neutralization
the cost of risk transfer is a component of ____
risk financing
___ of risk is done by stopping the process or activity
elim
_____ involves cost of contingent arrangements for the provision of funds to meet the financial impat of risk materializing.
risk financing
___ overall approach to the mgmt of CONTROL and OPPT. risks is similar to the approach adopted for the management of hazard risks
Project and Strategic Risk Response
4 RISK CONTROL TECHNIQUES
limit the possibility
preventive
strongest control
4 RISK CONTROL TECHNIQUES ARE
DIRECT
DETECT
CORRECT
PREVENT
…IVE
4 RISK CONTROL TECHNIQUES
limit the scope for loss and reduce any bad outcomes
corrective
4 RISK CONTROL TECHNIQUES
outcome is achieve
directive
4 RISK CONTROL TECHNIQUES
identify occasiosn of bad outcomes
detective
weakest control
the pooling of fortuitous losses by transfer of such risks to unsurers who agree to indemnify insureds for such losses, to provide other pecuniary benefit on their occurnce m or to render services connected with the risk
insurance
the 6C’s of Insurance Buying are
Cost
Coverage
Capacities
Capabilities
Claim
Compliance
the 6C’s of Insurance Buying
defined by the insurance prem that is REQ from the org and the level of self insurance that is imposed by the policy
cost
the 6C’s of Insurance Buying
amount of risk covered for an indiv or entity by way of insurance servis
coverage
the 6C’s of Insurance Buying
largest amount of insura or reinsurance available from company in gen. determ by financ strength and refer to adtl amount of business that a company or total market could write on excess captial that is surplus capacity
capacity
the 6C’s of Insurance Buying
used in ref to insurance. may be a demand by indiv to recover under policy
claim
the 6C’s of Insurance Buying
other services offered in addition to insurance
capabilities
the 6C’s of Insurance Buying
___ of insura policy to the laws of the country pertaining to insurance such as taxes
compliance
______ how orgs prepares for future incidents that could jeopardize its existence
BCP
Business continuity planning
BS31100:2011 defines ____ as a holistic mgmt process that identifies potential threats to an org and the impacts to business ops that those threats might cause and which provides a framework for building org resilience ….
Safeguard interests of its key _____, ___ , ___, _____
BCP
stakeholders, reput, brand, value creating actvities
6 successful bcp principles
CCPEMP
comprehensive
cost-effective
practical
effective
maintained
practised
_______ a particular component of BCP and involves a set of policies tools and procedures to RECOVER
DRP
DISAST RECOV PLAN
BCP MAJOR COMPONENTS
— Activate crisis mgmt plant
— seek to recover from the event through DRP
— issue of BCP
5 steps to BC standards
BS 25999 pt1 Code of Practice
— Und. busin Context
– BCM sttrategies
— develop a response
— est. cont. culture
— apply and plan maintenance
______ helps put business contuinutiy plans in place to protect them
ISO 22301
