Risk Flashcards
1
Q
Types of failure
A
- quality failures
- fraud
- environmental failures
2
Q
Management system model to avoid system failure
A
- develop procedures
- review procedures to ensure they are right procedures
- keep records
- internally and externally audit the system records
3
Q
Criticisms of management system approach to risk
A
- bureaucratic
- system may overlook significant possible failures
- weak auditing
- loss of flexibility
4
Q
Risk appetite
A
Amount and type of risk that makes organisation is prepared to pursue, retain or take
5
Q
High reliability organisations e.g aircraft carriers
A
- risk was managed through “mindfulness” not procedures
- sensitivity to operations
- commitment to resilience
6
Q
Enterprise risk management
A
Provides a process for organisations to prioritise their efforts to minimise and mitigate operational tasks
7
Q
As technological systems become more complex what becomes more likely
A
Catastrophic failure
8
Q
What is an alternative to management systems where uncertainty is high
A
Mindfulness or risks
9
Q
Process of enterprise risk management
A
- identify possible failures
- assess probability of occurrence
- estimate cost of each failure
- prioritise failures with kargest expected cost/year
- prevention (develop preocedures/systems to reduce probability
