K1 What risk is and why it is important Flashcards
Mark Zuckerberg
“In a world that is changing really quickly, the ony strategy that is guarenteed to fail is not taking risks”.
Perry and Heyes
“Risk is a measureable uncertainty, but uncertainty is an unmeasurable risk.”
Flanagan and Norman
“Uncertainty is asituation where no historical data exists or previous history related to the situation.”
ISO 73 & The institute of Internal Auditions definition of risk
“The efftect on uncertainty on objectives.”
Compliance risk
Overholdelse af love og regler, for at undgå bøder og have ‘license to operate’. Uden overholdelse af compliance, riskerer man at miste license to operate.”
Hazard risk
Potential harm for undining objectives in a negative way.
Needs to be managed to tolerable levels.
Occupational health and safety.
Control risk
- Associated with unknown and unexpected events and
- new projects where it is knowns events will occor, but precice consequences are difficult to predict.
Opportunity risk
The risk of taking the opportunity and the risk of not acting.
Spekulative risks.
Inherent level of risk
Niveauet af risiko før nogle foranstaltninger er iværksat.
Current or residual level of risk
Niveauet af risiko efter foranstaltninger er implimenteret.
Target level of risk
Risikoi niveauet man ønsker at opnå med yderligere control measures.
Risk likelihood og impact (Heat map)
Y-akse: Impact
x-akse: Likelihood
Probability
Used to describe the likelihood of a risk matrilizing.
STOC
Strategy
Tactics
Operations
Compliance
Risk attitude
Organisations approach to assess and eventually persue, retain, takE or turn away from risk.
