Risk Management Flashcards
1
Q
Define what is Risk Management?
A
The identification, analysis, and economic control of those risks which can threaten the assets or earning capacity of an enterprise.
2
Q
What are the three basic steps for Risk Management?
A
IDENTIFY, ANALYSE, CONTROL
3
Q
What is the process of identifying?
A
- Characterizing threats
- Perform a physical inspection
- Review the organizational structure and operational processes.
4
Q
What is the process of analyzing?
A
- Assessing the vulnerability of critical assets to specific threats
- Analyze and measure its impact quantitatively and qualitatively
- Select acceptable risk
5
Q
What is the process of controlling?
A
- Manage unacceptable risks
- Monitor uncontrollable risks
- Implement contingency plan to mitigate financial losses
