Risk Management Graphic Flashcards
Effective Risk Management requires…
Well-informed decisions
Well-informed decisions require
Effective comparisons
Effective comparisons are based on…
Meaningful measurements
Meaningful measurements require
Accurate modeling
Requirements for effective risk management…
Well-informed decisions
Effective comparisons
Meaningful measurements
Accurate Modeling
Effective risk management
Goal of any risk management program.
Set of processes that limits future loss.
Why are well-informed decisions important?
In order to Manage future losses.
Risk mitigation, transference, avoidance, acceptance
Effective comparisons
Compare risk associated with two scenarios. Compare risk reduction and costs.
Meaningful measurements
Forecasted range or probable loss.
Not heat maps, High/Medium/Low
Accurate risk modeling
Consistent and repeatable process for measuring risk.
Consistent, rigorous, and logically defensible methods.
