RISK (U1M1) Flashcards
is the effect of uncertainty on objectives
Risk
deviation from the expected
Effect
can have different aspects and categories and can be applied at different levels
Objectives
coordinated activities to direct and control an organization
Risk management
a proactive management tool in preventing occurrence of possible risk
Risk management
The 8 principles of effective risk management
a. Integrated
b. Structured and Comprehensive
c. Customized
d. Inclusive
e. Dynamic
f. Best Available Information
g. Human and Cultural Factors
h. Continual Improvement
Name the Value Creation and Protection
a. Integrated
b. Structured and Comprehensive
c. Customized
d. Inclusive
e. Dynamic
f. Best Available Information
g. Human and Cultural Factors
h. Continual Improvement
overall process of risk identification, risk analysis, and risk evaluation
Risk assessment
to find, recognize, and describe the risks that might help or prevent an organization to achieve its objectives.
Risk identification
give the Types of Risks
- Compliance Risk
- Control Risk
- Hazard Risk
- Opportunity Risk
involve government-mandated licenses and business permits and requirements.
Compliance (mandatory) risks
are risks, that can cause uncertainty or doubt about the ability to achieve company’s goals
are risks, that can cause uncertainty or doubt about the ability to achieve company’s goals
4 P’s
-People
-Premises
-Processes
-Products
risks that can prevent and deter the achievement of company’s goals
Hazard (or pure) risks
usually deliberately sought or embraced by the organization specifically for the future long-term success of any organization
usually deliberately sought or embraced by the organization specifically for the future long-term success of any organization
True or False: Risk management are overall activities to direct and control an organization with regard to the effect of uncertainty on objectives.
True
True or False: The purpose of risk management is the creation and protection of value in an organization.
True
True or False: Risks can only be expressed in terms of its likelihood.
False
