10 Risk Assessment Considerations

What is the purpose of risk assessment?

• To increase the number of risks affecting the organization

• To ignore risks and proceed with the organization's plans

• To eliminate all risks from the organization

• To identify and rate risks to determine the significant risks of an organization, project, or strategy

What is the main input into strategy formulation?

• Risk recognition

• Risk assessment

• Risk evaluation

• Risk management

What is the benefit of undertaking inherent risk assessment?

• Ignoring the existing control measures

• Making the risk assessment process more complicated

• Avoiding the identification of critical controls

• Identifying the difference between the current and inherent levels of risk

Who is likely to prefer undertaking risk assessments with current controls in place?

• Board of directors

• CEOs

• Health and safety practitioners

• Internal auditors

What is an important consideration for organizations when planning how to undertake risk assessment?

• The number of risks identified in a workshop

• Consistency with the organization's culture

• The use of voting software

• The involvement of specific individuals

What is the most common risk assessment approach?

• FMEA techniques

• HAZOP studies

• Brainstorming sessions

• Checklists/questionnaires

What is the relationship between risk attitude and risk appetite?

• They are the same thing

• They are unrelated

• Risk attitude is the established criteria, while risk appetite is the immediate need to take risks

• Risk appetite is the established criteria, while risk attitude is the immediate need to take risks

What is the overall attitude of an organization to risk described by?

• Risk appetite

• Risk criteria

• Risk matrix

• Risk severity

What is the main requirement of risk management in terms of the consequences of high impact events?

• To ignore the consequences

• To manage the consequences for the strategy, tactics, operations, and compliance

• To avoid the consequences

• To downplay the consequences

What is the approach taken by ISO 31000 in discussing risk appetite?

• It emphasizes the importance of risk appetite

• It considers risk appetite as the most crucial aspect of risk management

• It does not discuss risk appetite

• It provides a detailed definition of risk appetite