24 RAC

What are the three styles of risk management discussed in the text?

• Hazard management, Compliance management, Safety management

• Safety management, Control management, Opportunity management

• Hazard management, Control management, Opportunity management

• Risk management, Compliance management, Opportunity management

What is the hazard tolerance related to in risk management?

• Acceptable exposure to opportunity risks

• Maximum exposure to hazard risks acceptable to the organization

• Cost associated with controlling risks

• Negative outcome associated with hazard risks

Which style of risk management is based on fulfilling legal obligations?

• Opportunity management

• Control management

• Hazard management

• Compliance management

What is the risk appetite of an organization composed of?

• Hazard tolerance, Control acceptance, Opportunity investment

• Risk exposure, Risk capacity, Risk tolerance

• Risk acceptance, Risk investment, Risk control

• Hazard acceptance, Control investment, Opportunity tolerance

What is the first step to improve risk management performance in an organization?

• Developing a risk management policy

• Sponsoring the risk management initiative by a senior member

• Setting risk management performance targets

• Implementing risk management standards

What is the importance of identifying barriers in implementing a risk management initiative?

• To delay the implementation process

• To ensure the initiative is successful

• To discourage senior management involvement

• To increase the complexity of the initiative

What is the acronym suggested by recent UK Health and Safety Executive (HSE) research for components of a risk-aware culture?

• SHARE

• LILAC

• CARE

• LEARN

What is the primary objective of a risk management initiative?

• To improve risk management processes and outputs

• To discourage senior management involvement

• To ensure consistent undesirable behaviors

• To increase blame culture within the organization

What is the purpose of aligning risk management activities with other operations in an organization?

• To embed risk management into existing procedures

• To complicate risk management processes

• To separate risk management from other activities

• To reduce the effectiveness of risk management

What is the significance of risk maturity models in measuring risk culture within an organization?

• To determine the level of sophistication in risk management

• To identify areas of weakness in risk management

• To measure the level of risk management effectiveness

• To establish a blame culture within the organization