Risk Assessment Concepts and Indicators

The video tutorial covers both qualitative and quantitative risk assessments, explaining how to evaluate risks using methods like the Traffic Light Grid and calculations involving asset value and exposure factors. It discusses the importance of considering impacts on life, property, and finances, and explains concepts like risk appetite and tolerance with practical examples. The tutorial also highlights the use of a risk register for documenting and managing risks effectively.

What tool is used in qualitative risk assessment to categorize risks as low, medium, or high?

• Risk Matrix

• Risk Heat Map

• Traffic Light Grid

• SWOT Analysis

In a qualitative risk assessment, what color might be used to indicate a high level of risk?

• Red

• Blue

• Yellow

• Green

What does ARO stand for in quantitative risk assessment?

• Asset Rate of Occurrence

• Annualized Rate of Occurrence

• Asset Risk Overview

• Annual Risk Output

How is Single Loss Expectancy (SLE) calculated?

• Asset Value divided by Exposure Factor

• Asset Value multiplied by Exposure Factor

• Annualized Rate of Occurrence multiplied by Asset Value

• Annualized Rate of Occurrence divided by Exposure Factor

Which impact is considered most important in risk calculations?

• Life

• Safety

• Financial

• Property

What is the difference between likelihood and probability in risk assessment?

• Both are quantitative

• Both are qualitative

• Likelihood is qualitative, probability is quantitative

• Likelihood is quantitative, probability is qualitative

What term describes the level of risk an organization is willing to accept?

• Risk Capacity

• Risk Threshold

• Risk Tolerance

• Risk Appetite

In the context of risk, what does a higher risk tolerance indicate?

• A lower level of acceptable risk

• A higher level of acceptable risk

• No change in risk levels

• A need for more risk management

What is the purpose of a risk register in project management?

• To eliminate all risks

• To document and manage risks

• To increase project costs

• To delay project timelines

What is a key risk indicator in a risk register?

• A measure of project success

• A timeline milestone

• A factor that could cause project failure

• A financial metric