Risk Management Flashcards
What is risk management?
The systematic application of management policies, procedures, and practices to identify, analyse, evaluate, treat, and monitor risk.
What is the purpose of the Navy Risk Management System?
To identify and treat risks, manage and report on them consistently, supporting sound decision making.
True or False: Risk management guarantees that risks will not be realised.
False.
Define ‘Risk’.
The effect of uncertainty on objectives.
What characterises an event in risk management?
A deviation from the expected - positive and/or negative.
Differentiate between Threat and Hazard.
- Threat: Conditions that can negatively impact outcomes
- Hazard: Condition that can cause injury, illness, or damage.
What is a ‘Consequence’?
Outcome of an event affecting objectives with positive or negative effects.
Fill in the blank: The chance of risk being realised is called _______.
[Likelihood].
What is a ‘Control’?
A measure designed to reduce the likelihood of occurrence and/or the consequence of a risk being realised.
List the categories of controls within Navy.
- Preventative
- Restorative
- Monitoring.
Define ‘Risk Appetite’.
The amount of risk an entity is willing to accept or retain to achieve its objectives.
What does ‘Risk Tolerance’ refer to?
Levels of risk taking that are acceptable to achieve a specific objective.
What is a ‘Risk Threshold’?
When risks exceed risk appetite or risk tolerance, requiring further treatment or escalation.
What does SFARP stand for?
So Far as Reasonably Practical.
How must workplace health and safety risks be managed?
In accordance with legislative requirements to eliminate or reduce SFARP.
What is ‘Residual Risk’?
The risk remaining after systems of control have been developed and implemented.
What are the four characteristics that can define a given risk?
Duration, applicability, recognition, and level of severity.
What is a chronic risk?
An enduring risk that is always present and requires continual monitoring and re-assessment.
What is a finite risk?
A risk that applies for a specific time or activity and is no longer monitored once that time or activity has passed.
Define systemic risk.
A risk that extends across the whole system and cannot be managed exclusively by one part or authority.
Define discrete risk.
Risks that can be managed by a single executive authority and do not impact other parts of the system.
What is a known risk?
A risk that has been correctly identified, regardless of the ability to evaluate it.
What are the two types of unknown risks?
- New (unknown unknowns) * Latent (known unknowns)
What is the purpose of the Navy Harmonised Risk Matrix (NHRM)?
To assign a risk’s level of severity through analysis of likelihood and consequence.
