Test Bank

The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result

Defining Risk Management. Without directly referring to your text, construct a definition (as you understand it) of at least 3 of the following:

Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,

a. Changes in market interest rates and related changes in the security 's prepayment risk

Identify the potential risks which affect the company and manage these risks within its risk appetite;

You have been asked to develop a risk inventory, risk map and the general risk response you would recommend to address each risk.

supportive of the project to develop a new plan. You have been assigned to develop this new plan.

* There are three (3) schools of thought regarding risk. The first considers the positive and negative aspects of risk, but sees them as separate. The second group believes that there are benefits from treating threats and opportunities together, while the third school does not label uncertainties, but addresses uncertainty as part of “doing the job.” Argue the value of having a risk strategy despite the cost associated with it. Include an example to support

Risk Management issues are often handled at the facility where the problem(s) exist. One of the duties of Risk Manager’s is to communication and collaboration between departments within an organization in question. In addition, to sinking risks, and cutting costs in order to promote process efficiency .By analyzing incident reports is one way to correct current problems, and future problem areas. Risk managers are also responsible for certain criteria that must be met in order for full participation in certain government and state reimbursement programs ("World Health Organization," “n.d.”). Risk Management is a structured approach to managing improbability, related to a risk, through a structure of human interaction.

Our implementation plan mainly focuses on five risks, which are compliance risk, strategic risk, credit risk, operational risk, and financial risk. The corporation has established risk management committees to assess and manage the corporation’s exposure to the above risks. Then, the committees will prioritize these risks and establish guidelines for risk management processes. After that, it will assign the management of some risks to appropriate operating departments or individuals. The management process and department control activities are monitored by the committee and board of directors. However, each individual within the company has responsibility to identify and report potential risks to their managers.

(cite) explained that risk management is the decision-making process to identify threats, vulnerabilities, and impacts of the threats on business objectives. In the Blue Spider (BS) project, it was clear from the beginning that the organization did not manage risk properly. The problem began when Henry Gable, as the director of engineering, made the unethical decision to lie about the project specifications. The unethical decision by Gable would be the key reason of many risks faced by Gary Anderson throughout the project. Furthermore, (cite) explained that there are five risk response strategies that an organization could take. The strategies are listed as mitigating risk, avoiding risk, sharing risk, retaining risk, and transferring risk. It is clear that Anderson did not maintain risk assessment and response plan since the beginning of the project.

Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.

Discuss the risk management process presented in the course text (Page 8 of session 1). Apply it to a specific risk present in your own workplace and pay particular attention to any secondary risks that may be introduced.

3. There are several techniques available for managing risk. For each of the following risks, identify an appropriate technique, or combination of techniques, that would be appropriate for dealing with the risk.

Concept of risk, risk assessment, risk management and how uncertainty affects the process will be discussed.