RISKMANAGEMENT Flashcards
is the human activity which
integrates recognition of risk, assessment,
developing strategies to manage it.
Risk Management
the importance of embedding risk into business strategies and linking risk and operational performance.
COSO ERM Framework
a framework to help organizations apply risk management mechanisms to operations, and a process for identifying, evaluating, prioritizing and mitigating risk.
ISO 31000
including functions like identify, assess, respond, report and review.
British Standard (BS) 31100.
framework helps risk professionals assess their programs in five categories: strategy alignment; culture and accountability; risk management capabilities; risk governance; and analytics
The Risk and Insurance Management Society’s Risk Maturity Model (RMM).
4 types of strategies to manage risk
risk avoidance
risk reduction
risk transfer
risk acceptance
strategy implements policies, technology, employee training and other steps designed to eliminate risk
risk avoidance
strategy implements policies, technology, employee training and other steps to reduce risk to an acceptable level
risk reduction
strategy contracts with a third party to bear some or all costs of a risk that may or may not occur
risk transfer
strategy accepts the risk because its potential to harm the organization is very limited or the cost of mitigating it exceeds the damage it would inflict.
risk acceptance
defining -risk appetite and risk tolerance
Establishing the context
risk scenarios - positive or negative impact on the organization’s ability to conduct business.
Risk identification
Making a risk heat map
Risk analysis
Monitoring activities should measure key performance indicators and look for key risk indicators that might trigger a change in strategy.
Monitoring and review
is the process of evaluating and implementing procedures to reduce the impact of risks in construction projects.
Construction risk management
