risk identification, analysis, evaluation Flashcards
find the risk
describe the risk
recognize the risk
risk identification
effect of uncertainty on objectives
risk
result in opportunities or threats
effect
different aspects or categories
objectives
coordinated activities to direct and control an organization with regard the risk
risk management
8 risk management principles
integrated
structured and comprehensive
customized
inclusive
dynamic
best available information
human and cultural factors
continual improvement
integrated
risk management is an integral part of all organizational activities
structured and comprehensive
approach risk management contributes to consistent and comparable results
customized
frameworks and processed are customized to organization’s integral and external
inclusive
appropriate and timely involvement of stakeholders enables their knowledge and views
dynamic
detects and respond to these changes in appropriate and timely manner
best available information
inputs of risk management are based on historical and current information
human and cultural factors
human behaviour and culture significantly influence all aspects of risk management
continual improvement
risk management is continually improved through learning and experience
overall process of risk identification, risk analysis and risk evalution
risk assessment
types of risk
compliance risk/mandatory
hazard risk/ pure risk
control risk
opportunity risk
compliance risk
involve government mandated license and business permits and requirements
hazard risk
risk that can prevent and deter achievement at company’s goal, mission
ex. landslide
control risk
risk that can cause uncertainty or doubt about the ability to achieve the company’s goals, mission
ex. internal financial control protocols
opportunity risk
typically pursued by the company with the goal of ensuring its long term success
provide information regarding undesirable events in which it estimates it probabilities and consequences for risk
risk analysis
occurance or change of a particular set of circumstances
event
outcome of an event affecting objectives
consequence
2 steps on how to use risk analysis
identify the threats
estimate risk
identify the existing and possible threats that you might face
identify the threats
calculate the likelihood of these threats being realized and their possible impacts
estimate risk
example of risk
budget, quality, procedural, operational, injury, weather, preparation, safety, financial, technical, natural, political, structural
estimating the risk formula
probability of the event (%) x cost of the event
process of risk analysis/ five steps of risk management process
identification of risk
analyze the risk
evaluate the risk
treat the risk
monitor the risk
identification of risk
team members gather all the use in the project and recognize the outcome of the project
analyze the risk
identify the risk extent, the nature of risk, what extent it may occur in the organization
evaluate the risk
risk analysis tools - swot analysis
treat the risk
team should decide whether to continue the project or not
monitor the risk
review time to time to avoid
threats and vulnerability
devastating - 75%
sever - 50%
noticeable - 25%
minor
process that is used to compare the risk analysis results with risk criteria
risk evaluation
management tool
risk evaluation matrix
