Risk Management Flashcards
(46 cards)
Fundamental process that involves identifying, analyzing, treating, monitoring, & reporting risks. Crucial for projects & businesses, involving the identification & assessment of uncertainties that may impact objectives.
Risk Management
Refers to how often the risk assessment process is conducted within an organization. The regularity with which risk assessments are conducted within an organization.
Risk Assessment Frequency
Conducted as and when needed, often in response to a specific event or situation that has the potential to introduce new risks or change the nature of existing risks. Specific events or situations & may be repeated.
Ad-Hoc Risk Assessments.
Conducted at regular intervals, such as annually, quarterly, or monthly.
Recurring Risk Assessments
Conducted for a specific purpose & are not repeated. Specific project or initiative & are not repeated.
One-Time Risk Assessments
Ongoing monitoring & evaluation of risks.
Continuous Risk Assessments
Recognizing potential risks that could negatively impact an organization’s ability to operate or achieve its objectives.
Risk Identification
Process that involves evaluating the potential effects of disruption to an organization’s business functions & processes.
Business Impact Analysis
It represents the maximum acceptable length of time that can elapse before the lack of a business function severely impacts the organization.
Recovery Time Objective (RTO)
It represents the maximum acceptable amount of data loss measured in time.
Recovery Point Objective (RPO)
It represents the average time required to repair a failed component or system.
Mean Time to Repair (MTTR)
It represents the average time between failures.
Mean Time Between Failures (MTBF)
A document detailing identified risks, including their description, impact likelihood, and mitigation strategies.
Risk Register (Risk Log)
Entails identifying & providing a detailed description of the risk.
Risk Description
Potential consequences if the risk materializes.
Risk Impact
Chance of a particular risk occurring.
Risk Likelihood/Probability
Result of a risk, linked to its impact & likelihood.
Risk Outcome
Determined by combining the impact & likelihood.
Risk Level/Threshold
Pertains to its financial impact on the project, including potential expenses if it occurs or the cost of risk mitigation.
Cost
Refers to an organization or individual’s willingness to deal with uncertainty in pursuit of their goals.
Risk Tolerance/Risk Acceptance
Signifies an organization’s willingness to embrace or retain specific types and levels of risk to fulfill its strategic goals. An organization’s willingness to take on certain risks to achieve its objectives. It can be expansionary, conservative, or neutral, depending on the balance the organization seeks between risk & return.
Risk Appetite.
Organization is open to taking more risk in the hopes of achieving greater returns
Expansionary Risk Appetite
Implies that an organization favors less risk, even if it leads to lower returns.
Conservative Risk Appetite
Signifies a balance between risk & return.
Neutral Risk Appetite
