Tools and techniques 1: risk identification Flashcards
Is Risk Management a separate unit within an organisation?
No, it is integral and indivisible from strategic and operational management
What shapes perceptions of risk importance?
External events
What are the sources of internal information?
- People
- Meetings
- Committees
- Documents
- Databases
- Observation
How do people collect data?
- Tour
- Automatic Information Gathering
- ## Collecting from documents
Can information taken from documents be accepted at facevalue?
No
What are the methods of risk identification?
Organisation charts Flow Charts Checklists and Questionnaires Physical Inspections Brainstorming and workshops Fault trees Hazard and operability (HAZOP) studies
What do organisation charts show?
Who reports to who and route important decisions take
What doe flow charts show?
All ingredients taken for the final product
Checklists and questionnaires are useful…
- as an ‘aide memorie’
- if risk team needs to delegate information gathering
- bring information to a common format
What is the disadvantage of giving a questionnaire to another person to complete?
Answers dictated by the questions
What is the benefit of checklists and questionnaires?
Efficient way of getting basic information from large numbers
What is the difference between a questionnaire and a checklist?
Q = sent to someone else to complete C = prompts a professional to give answers in a particular way
What are fault trees?
investigate what could cause supply to cease and likelihood
What are the 2 things a fault tree can achieve?
- assess the chance of supply chain being broken
- view for potential damage
What is HAZOP?
Method to quantify risk. Breaks complexity down
What 4 questions does a HAZOP study address?
What is the part intended to achieve?
What deviations are possible
What could be the cause of variations
what could be the consequences of variations
Are physical inspections better than desk studies?
Yes
According to the Aon Global risk management survey, what type of risk was of greatest concern in 2019?
Economic slowdown/slow recovery.
The Health and Safety committee of a business has recently met to discuss the impact of new construction site regulations. Which document will be most useful to the risk department as part of their risk identification activities in understanding the key decisions made?
Minutes.
A manufacturer wants to understand what impact a loss of electricity supply will have. They have asked operations managers to submit reports on the impact of power outages lasting different lengths of time. What method of risk identification is being used?
A desktop exercise.
The main advantage of using a checklist to gather risk information is:
it is a cheap and efficient way of collecting large amounts of standardised information.
Why should risk departments take a detailed interest in procedures manuals?
Where procedural risk management is implemented
Why are large companies including risk information in their annual reports?
demonstrate proper management and risk awareness
What is the difference between a flow chart and fault tree?
Flow chart = good and services come together
Fault tree = possible causes of failure to deliver
What are fault trees used for?
To investigate what could cause supplies to cease and likelihood
