Unit 4 Risk Assessment 1 - Introduction & Identification Flashcards
Unit 4: Risk assessment 1: introduction and identification Risk assessment considerations, risk classification systems (risk identification), risk causes (sources) and consequences.
Which of these is an advantage of using questionnaires and checklists for risk assessment?
Which of these is an advantage of using flowcharts for risk assessment?
A top-down approach to risk assessment is likely to:
Activity 4.3. Using the diagram on page 33 in Hopkin, try to identify a second level cause of each of the two risk sources on the diagram.
And what might be a second level consequence for each of the three consequences on the diagram?
A possible cause of faulty electrical equipment is a lack of routine checking and maintenance. A possible cause of unattended cooking might be a lack of staff at necessary times of activities, such as at lunch and dinner time. A possible consequence of asset destruction is a financial loss to the business caused byhaving to replace the assets and from business interruption. Smoke inhalation could result in the consequence of long-term staff absences and thus affect the ability of the business to trade. The consequences of accident or injury to staff might be financial penalties (fines) resulting from a breach of health and safety regulations and a loss of reputation to the business.
Activity 4.4 You are studying for IRM’s International Diploma in Risk Management.
a Identify three risks which could impact on your objective to gain that qualification.
b Identify two causes for each of the three risks that you identify.
Here, we hope you can think of a full set of risks – such as illness, family events and a lack of time to study – to the less likely events – such as getting lost on the way to the exam centre or forgetting your pen! You could complete the cause → risk → consequences analysis by asking yourself what, if you do fail to achieve the qualifications, could be the consequences for your future career.
Activity 4.6. Identify three reasons why organisations find it useful to classify risks
Check off your reasons for classifying risks against our list earlier in this
unit.
Activity 4.6. List the six risk categories for each of the PESTLE acronym and identify three advantages and disadvantages of the PESTLE risk classification system
The six categories of the PESTLE risk classification system are political,
economic, social, technological, legal and environmental (or sometimes
ethical) risks. Its big advantage is in identifying external risks; it is less
appropriate for identifying internal risks. Hopkin also provides a list of the advantages and disadvantages of PESTLE in chapter 11
Activity 4.6. Try to think of three reasons why sometimes we will treat risks without knowing the underlying causes of that risk.
If the cost of investigation is very high then it might simply be too expensive. If the timescale between the risk event and its impact is very short there might not be time to investigate the causes. If the severity of the risk is so great (for example, in the form of a crisis), we cannot delay in trying to contain the symptoms (we will later define this idea of cost containment) while we discover the causes
