Tools and techniques 1: risk identification

Question 1

Is Risk Management a separate unit within an organisation?

Answer 1

No, it is integral and indivisible from strategic and operational management

Question 2

What shapes perceptions of risk importance?

Answer 2

External events

Question 3

What are the sources of internal information?

Answer 3

• People
• Meetings
• Committees
• Documents
• Databases
• Observation

Question 4

How do people collect data?

Answer 4

• Tour
• Automatic Information Gathering
• ## Collecting from documents

Question 5

Can information taken from documents be accepted at facevalue?

Answer 5

No

Question 6

What are the methods of risk identification?

Answer 6

Organisation charts 
Flow Charts 
Checklists and Questionnaires 
Physical Inspections 
Brainstorming and workshops 
Fault trees
Hazard and operability (HAZOP) studies

Question 7

What do organisation charts show?

Answer 7

Who reports to who and route important decisions take

Question 8

What doe flow charts show?

Answer 8

All ingredients taken for the final product

Question 9

Checklists and questionnaires are useful…

Answer 9

• as an ‘aide memorie’
• if risk team needs to delegate information gathering
• bring information to a common format

Question 10

What is the disadvantage of giving a questionnaire to another person to complete?

Answer 10

Answers dictated by the questions

Question 11

What is the benefit of checklists and questionnaires?

Answer 11

Efficient way of getting basic information from large numbers

Question 12

What is the difference between a questionnaire and a checklist?

Answer 12

Q = sent to someone else to complete 
C = prompts a professional to give answers in a particular way

Question 13

What are fault trees?

Answer 13

investigate what could cause supply to cease and likelihood

Question 14

What are the 2 things a fault tree can achieve?

Answer 14

• assess the chance of supply chain being broken

- view for potential damage

Question 15

What is HAZOP?

Answer 15

Method to quantify risk. Breaks complexity down

Question 16

What 4 questions does a HAZOP study address?

Answer 16

What is the part intended to achieve?
What deviations are possible
What could be the cause of variations
what could be the consequences of variations

Question 17

Are physical inspections better than desk studies?

Answer 17

Yes

Question 18

According to the Aon Global risk management survey, what type of risk was of greatest concern in 2019?

Answer 18

Economic slowdown/slow recovery.

Question 19

The Health and Safety committee of a business has recently met to discuss the impact of new construction site regulations. Which document will be most useful to the risk department as part of their risk identification activities in understanding the key decisions made?

Answer 19

Minutes.

Question 20

A manufacturer wants to understand what impact a loss of electricity supply will have. They have asked operations managers to submit reports on the impact of power outages lasting different lengths of time. What method of risk identification is being used?

Answer 20

A desktop exercise.

Question 21

The main advantage of using a checklist to gather risk information is:

Answer 21

it is a cheap and efficient way of collecting large amounts of standardised information.

Question 22

Why should risk departments take a detailed interest in procedures manuals?

Answer 22

Where procedural risk management is implemented

Question 23

Why are large companies including risk information in their annual reports?

Answer 23

demonstrate proper management and risk awareness

Question 24

What is the difference between a flow chart and fault tree?

Answer 24

Flow chart = good and services come together

Fault tree = possible causes of failure to deliver

Question 25

What are fault trees used for?

Answer 25

To investigate what could cause supplies to cease and likelihood