Risk management Flashcards
What is risk management?
Risk management is the identification, assessment, and prioritisation of risks followed by coordinated and economical application of resources to minimise, monitor, and control the probability and/or impact of unfortunate events.
Name 4 ways to manage risk
- Transfer the risk to another party
- Avoid the risk
- Reduce the negative effect of the risk
- Accept some/all of the consequences of a particular risk
Name 6 types of risk
Performance risk Management risk External risk Development risk Support risk Commercial risk
What is the simple 2 term equation for risk?
Risk = likelihood x impact
(= exposure x hazard)
How is good performance defined for performance risk?
There is a considerable margin/safety factor between the worst case and required performance
How is potentially poor performance defined for performance risk?
estimated performance is close to the required performance, greater chance that the design could fail
What is risk analysis?
The systematic identification of hazards and their risks, how likely they are and how severe it would be if they occur
What is risk management?
The whole process of identifying hazards, analysing risks and controlling them
What are the 5 steps of risk management?
- Hazard identification
- Risk estimation
- Risk evaluation
- Risk control
- Risk monitoring
What is risk evaluation?
deciding whether risks are acceptable
What is risk control?
reducing any unacceptable risks to acceptable levels
What are the 8 steps of a risk review?
1) Background: why undertake a review?
2) Articulate purpose: what is the purpose of the review?
3) Define requirements: who, what, when, where?
4) Describe system: what is to be assessed?
5) Identify hazards: what could go wrong?
6) Assess risks: will it go wrong?
7) Propose actions: what actions are required?
8) Review process: what next?
