Risks (chap 1) Flashcards
(3 cards)
1
Q
What is the black swan theory
A
in 1697 no one has ever seen a black swan before. Hence everyone believed that all swans are white.
Absence of proof is not proof of absence
2
Q
How do we manage risks
A
Transfer
Risk to another
Treat
Risk to reduce the impact/exposure
Terminate
activity generating risk
Tolerate
risk and its likely impact
3
Q
Exception to 4T’s approach
A
sometimes org are forced to keep risks that are beyond their risk appetite or risk management ability.
It is when organisations have to tolerate risk that are un critical levels.
