Risk Management Flashcards
risk management relate to managers’ tendencies to rely on older perceptions of the risks they face and the most effective ways of managing them.
Cognitive barriers to risk management
risk
Effect of uncertainty on the ability to meet organizational objectives
Coordinated activities to direct and control an organization with regard to risk
risk management
Unforeseen “outlier” events that are extremely rare, have a major impact, and, when viewed in hindsight, are reasonably predictable
“Black swans”
Kaplan and Mikes’s Categories of risks
Internal and preventable; Strategy; External
What considers risk to be an integrated issue that must be managed across functions and divisions in an enterprise
Enterprise Risk Management
The ERM Framework divides risk into four categories
Strategy; Operations; Financial reporting; Compliance
ISO’s organizational framework of risk-aware and risk-intelligent culture
Management commitment; Design of a framework for managing risk; Implementing risk management; Periodic monitoring and review of the framework; Continual improvement of the framework
What data is necessary for developing a global organizational and functional strategy
PESTLE
the organization’s desired gain or acceptable loss in value
risk position
a tool used to gather individual assessments of various characteristics of risk
risk scorecard
Metrics that “provide an early signal of increasing risk exposures in the various areas of an enterprise.”
key risk indicators (KRIs)
PAPA model matrix
prepare, act, park, and adapt
List of information about and responsibility for managing specific risks. This information increases the transparency and accountability in an organization’s risk management process.
Risk Register
The risk plan creates another layer of opportunity or risk
secondary risk
