Risk Management Flashcards
Definition of Risk Management
Risk management is a process that allows individual risk events to be understood and managed proactively, optimising success by minimising threats and maximising opportunities.
Risk Management Process - 5 Stages
Initiate Identify Assess Plan Responses Implement Responses
Risk Management Stage 1
Initiate
Risk Management Stage 2
Identify
Risk Management Stage 3
Assess
Risk Management Stage 4
Plan Responses
Risk Management Stage 5
Implement Responses
Purpose of Risk Management Stage 1 - Initiate
Define the scope and objectives of risk management.
The output of this stage is the Risk Management Plan.
Purpose of Risk Management Stage 2 - Identify
Identify the risks and document them in the Risk Register.
Purpose of Risk Management Stage 3 - Assess
Risks are assessed using qualitative techniques to asses attention prioritisation.
Quantitative analysis can be used to determine combined effect of risks on objectives.
Purpose of Risk Management Stage 4 - Plan Response
Aim to:
Avoid, Reduce, Transfer or Accept.
If Risk is an Opportunity then responses could be:
Exploit, Enhance, Share or Reject.
Purpose of Risk Management Stage 5 - Implement Responses
Implement the agreed responses from the planning stage.
Risk Response 1 (A)
Avoid
Risk Response 2 (R)
Reduce
Risk Response 3 (T)
Transfer
