Chapters 1 & 2
This organization defines risk as the combination of the probability of an event and its consequences
What is the Institute of Risk Management (IRM)?
This is defined as the process which aims to help organizations understand, evaluate and take action on all their risks with a view to increasing the probability of success and reducing the likelihood of failure
What is risk management?
A silo-based approach is representative of this
What is traditional risk management?
Strategy risks typically occur with this type of risk impact
What are long-term risks?
This is achieved when the benefits obtained from taking the risk are greater than any benefit that would have resulted from not taking it
What is the upside of risk?
This indicates the long-term view of the organization
What is risk attitude?
A short-term loan for a new machine is an example of this type of risk
What is a medium-term risk?
Holistic views of key risks is representative of this
What is enterprise risk management (ERM)?
Operation risks typically occur with this type of risk impact
What are short-term risks?
This is about reducing the likelihood of an adverse event occurring
What is loss prevention?
The level of the risk before any actions have been taken to change the likelihood or magnitude of the risk is known as this
What is the inherent level of risk?
These type of decisions are the most important that an organization has to make
What are strategic decisions?
Name the acronym FIRM in order
What are financial risks, infrastructure risks, reputational risks and marketplace risks?
If a risk has occurred more than 3 times in the past 10 years or occurs regularly in similar organizations, it represents this
What is a possible likelihood of risk?
Name the 4 T's of the Hazard Risk Response matrix
What are transfer, terminate, tolerate and treat?
Name three of the four quadrants of the Risk and Reward Matrix
What are mature operation, growth, decline and start-up operation?
Organizations should _____ opportunity risks, _____ control risks, _____ hazard risks and _____ compliance risks
What are embrace, manage, mitigate and minimize?
Name four of the seven stages of the ISO 31000 standard
If a risk has a serious impact on health, it represents this
What is a severe impact of risk?
If a risk has a high impact of risk but a low likelihood of risk, it falls in this quadrant of the 4Ts Hazard Risk Response matrix
What is transfer?
Name five of the eight stages of the COSO ERM Cube
What are internal environment, objective setting, event identification, risk assessment, risk response, control activities, information & communication and monitoring?