Risk Management Flashcards
What is risk management?
The systematic application of management policies, procedures, and practices to identify, analyse, evaluate, treat, and monitor risk.
What is the purpose of the Navy Risk Management System?
To identify and treat risks, manage and report on them consistently, supporting sound decision making.
True or False: Risk management guarantees that risks will not be realised.
False.
Define ‘Risk’.
The effect of uncertainty on objectives.
What characterises an event in risk management?
A deviation from the expected - positive and/or negative.
Differentiate between Threat and Hazard.
- Threat: Conditions that can negatively impact outcomes
- Hazard: Condition that can cause injury, illness, or damage.
What is a ‘Consequence’?
Outcome of an event affecting objectives with positive or negative effects.
Fill in the blank: The chance of risk being realised is called _______.
[Likelihood].
What is a ‘Control’?
A measure designed to reduce the likelihood of occurrence and/or the consequence of a risk being realised.
List the categories of controls within Navy.
- Preventative
- Restorative
- Monitoring.
Define ‘Risk Appetite’.
The amount of risk an entity is willing to accept or retain to achieve its objectives.
What does ‘Risk Tolerance’ refer to?
Levels of risk taking that are acceptable to achieve a specific objective.
What is a ‘Risk Threshold’?
When risks exceed risk appetite or risk tolerance, requiring further treatment or escalation.
What does SFARP stand for?
So Far as Reasonably Practical.
How must workplace health and safety risks be managed?
In accordance with legislative requirements to eliminate or reduce SFARP.
What is ‘Residual Risk’?
The risk remaining after systems of control have been developed and implemented.
What are the four characteristics that can define a given risk?
Duration, applicability, recognition, and level of severity.
What is a chronic risk?
An enduring risk that is always present and requires continual monitoring and re-assessment.
What is a finite risk?
A risk that applies for a specific time or activity and is no longer monitored once that time or activity has passed.
Define systemic risk.
A risk that extends across the whole system and cannot be managed exclusively by one part or authority.
Define discrete risk.
Risks that can be managed by a single executive authority and do not impact other parts of the system.
What is a known risk?
A risk that has been correctly identified, regardless of the ability to evaluate it.
What are the two types of unknown risks?
- New (unknown unknowns) * Latent (known unknowns)
What is the purpose of the Navy Harmonised Risk Matrix (NHRM)?
To assign a risk’s level of severity through analysis of likelihood and consequence.
What is deliberate risk management?
A process designed to identify risks and develop controls to prevent or mitigate them.
What is incident management?
The application of restorative controls when a known risk has materialized.
What characterizes crisis management?
Urgency, ad hoc decisions, multiple opinions, limited options, and conflicting information.
What is the primary objective of the Navy Risk Management System?
To avoid the realization of risk and progression to incident management.
What should risk managers do to avoid a crisis management scenario?
Constantly scan the risk horizon for new and latent risks and changes to known risks.
List critical factors for monitoring the risk horizon.
- Access to reliable knowledge * Experienced personnel * Avoiding day-to-day distractions * Robust assurance regime * Posting continuity * Effective induction processes * Performance reporting system.
How often should risk managers review known risks?
-every six months
- on posting of key personnel
- on changes to regulations
- when a finite risk is due to expire
What is a system of controls in risk management?
A hierarchy of preventive, monitoring, and restorative controls needed for effective risk management.
What is residual risk?
Risk that remains after preventive controls have been applied.
What can cause design flaws in controls?
Resource constraints, unknown risks, interdependencies, new technologies, and lack of knowledge.
What human factors can lead to ineffective controls?
Fatigue, carelessness, bravado, inexperience, and poor communication.
What must be included in a risk management strategy to ensure effectiveness?
Process and outcome assurance.
True or False: Every control can be 100% effective in mitigating risk.
False.
What should risk managers do when a finite risk is scheduled to expire?
Review the risk and assess for any new or existing risks.
What’s the reference for risk management
ANP3001 CH7
What are the types of risk
Safety
Technical
Capability
Mission
Environmental
Reputation
