Risk management Flashcards
Diagnosis
Identification of all risks and evaluation of frequency/probability
Therapy
Searching for methods to manage these risks
Objective of risk identification
- Complete identification of all risks
- Quick identification of new risks
- Prognosis of future risks
- Integrate safety measures
Steps in the risk management process
- Risk identification
- Evaluation
- Management methods
Prognosis of future risks
When a new building is being planned, fire risk should be examined to integrate safety measures in the planning process
How can cause chair effects be used in risk identification
Look at the chain of events that lead to a loss, then see where the week points are
Progressive approach
Identify risks/causes as you move forward through the chain (cause > effect)
Retrograde approach
Look backwards (cause
inductive reasoning
Estimates the future from what has happned in the past
Deductive reasoning
Drawing conclusions from general data
Positive delimitation of risks
Identification of existing risks
Negative delamination of risks
Looking at what is risky
Methods of risk identification (4)
- inspections
- Employees
- Analysis of documents
- Organisational analysis
Limitations of inspection of inspections
Not all risks can be seen
General inspection
Where you go on a tour looking for risks in general
What type of inspection can get you additional information
Supplementary inspection
What is the issue with consulting employees for gathering information in regard to risks
They may not disclose them because there would be more work for them
Issue with looking at documents to find risks
Focus on the past
What types of risks can be found by looking at documents?
Systematic risks (entire organisation) like over-reliance on a supplier
What are the 2 types of organisation analysis
Organisational structure and operational structure
Organisational structure analysis
Dependencies in an org
What does an organisational structure analysis show?
Personal failure, confidentiality risks, IT risks, corporate espionage
Operational structures analysis
Looks at the causes and effects of disruptions
Levels of operational structures analysis
- Enterprise and its environment
- Whole industry
- Special part of the process
What are the 2 dimensions when evaluating risks
Probability and severity
Methods/instruments of risk management
- Loss control
- Risk financing
Loss control
Preventing and mitigating
Risk financing
Risk transfer (hedging), insurance, self-insurance, risk assumption
Three categories of risk management instruments
- Real, tangible or nominal
- Effects (severity and probability
- Sphere (real or nominal)
When should risk be eliminated instead of just mitigated
In life or death situations
Phases of risk management
Before and after
