Risk Evaluation Flashcards
It is 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.
RISK EVALUATION
What is the purpose of risk evaluation?
The purpose of risk evaluation is to support a decision.
Who suggest the use of risk evaluation matrix?
Cuskelly and audl (1989)
It is systematic process of evaluating the potential risks that may be involved in a projected activity or undertaking.
Risk assessment
It is the process of comparing the estimated risk levels against predefined criteria to determine their significance and decide whether they are acceptable or need treatment.
Risk evaluation
It is a management tool which accurately assess
business exposure based on the frequency and severity of identified
potential risk.
Risk evaluation matrix
It refers to the probability or chance of a risk event occurring.
Likelihood
It uses descriptive terms and expert judgment to evaluate risk, often based on experience and subjective analysis.
Qualitative risk assessment
It uses numerical values and statistical methods to evaluate risk, providing a more objective measurement.
Quantitative risk assessment
This is a form of self-insurance, whereby the business
operator assumes and accepts a certain level of losses.
Risk retention
They’re defined the level of identified risk
Wilks and davis
risk are retained by business operator
without the knowledge that
they are occurring
Passive retention
risk is identified and
a decision is made to retain and
pay for any losses from
the business operator’s
own resources
Active retention
It is a risk management
technique that seeks to
reduce the possible loss of
business.
Risk reduction or loss control
It is the
elimination of hazards,
activities and exposures that
can negatively affect an
organization and its assets.
Risk avoidance
