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RM 1-2
Question | Answer |
---|---|
ORG can achieve these with proactive RM | Operations will be more efficient ; Processes will be more effective ; Strategy will be more efficacious |
Operations more efficient because with RM because | Because events that can cause disruption will be identified in advance and actions taken to reduce their likelihood, reduce the damage and contain the costs of events that disrupt normal production Ops |
Processes will be more effective with RM beacause | Because consideration given to selection of processes and risks involved in available alternatives. Process changes by way of projects will be more effectively and reliably delivered. |
Strategy will be more efficacious with RM because | Because the risks associated with different strategic options will be fully analyzed and better strategic decisions will be reached. Efficacious refers to the fact that the strategy developed will be fully capable of delivering the required outcomes. |
Exposure presented by individual risk defined by | Likelihood of the risk materializing and the impact of the risk when it does materialize |
Guide 73 refers to measurement of likelihood and impact | Current or residual risk (Guide 73) |
Book def of 'Impact' | Size of the event that has occurred or might occur |
Book def of 'consequences' | Indicates the range of impacts that a particular event could have |
Risks can be identified by | Considering Key Dependences of ORG, Corporate and/or stakeholder expectations, and core processes of ORG |
Corporate Objectives should be presented as | Statement of short, medium and long-term aims of an ORG |
Most important disadvantage to 'objectives-driven' RM | Considering risks out of the context that gives rise to them |
Standard to attach risks to _______ ; may be more efffectiviley attached to | Corporate objectives ; Key dependencies |
Reward for RM effor to Hazard risks | Fewer disruptive events |
Reward for RM effor to Project (control) risks | Project is more likely to be delivered on time, within budget and to specification/quality |
Reward for RM effort to opportunity risks | Fewer unsuccessful new products and a higher level of profit or lower level of loss for all new activities or products. |