Question

1. What do you understand by the term risk?

2. How would you contextualize risks in your organization?

3. List four methods of identifying risks in an organization.

4. How are risks analyzed?

5. What do you understand by the terms “long term” and “short term” risk treatments?

6. Explain the role of every worker in regards to identification of risks.

7. List the role of senior management team in the mitigation process of risks.

8. Discuss the aims and objectives of ISO31000: 2009 risk management standard?

9. How would you establish a full risk management system ISO31000: 2009 in your organization?

10. Describe the role of senior management in terms of its commitments to risk management systems?

Answer 1

Ans (1)

the can be definid by the term risk the risk implies future uncertainty about deviation from expected earnings or expected outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment.

Description: Risks are of different types and originate from different situations. We have liquidity risk, sovereign risk, insurance risk, business risk, default risk, etc. Various risks originate due to the uncertainty arising out of various factors that influence an investment or a situation

Ans (.3)

List and describe four methods of identifying risk
1) Brainstorming
2) Prompt lists
3) Check lists
4) Delphi

1 . Brainstorming

Brainstorming involves a group of people working together to identify potential risks, causes, failure modes, hazards and criteria for decisions and/or options for treatment. Brainstorming should stimulate and encourage free-flowing conversation amongst a group of knowledgeable people without criticising or rewarding ideas.and finally a collation phase where key ideas are pulled together into themes, duplicates removed and themes summarised. From this final list, the facilitator should create a finalised list of risks for evaluation.

2 Prompt

lists are structured areas to consider or headings for risks. These lists often form part of a project management method. Typically they might include technical, commercial, legal, resources, environmental. Which in each area a team can then brainstorm the likely risks. It’s a useful technique to break down a workshop into subgroups. With each team considering one area of the prompt list and then reporting back to the rest of the group. Compared to brainstorming, prompt lists offer structure and ensure that key areas are not neglected.

3. Checklists

Checklists are pre-populated lists of hazards, risks or control failures that have been developed usually from experience, either as a result of a previous risk assessment or as a result of past failures or incidents.
Auditors often prepare checklists of key controls to aid in their assessment of control effectiveness and the internal control environment.

4. Delphi

The delphi is a way of consulting experts. This is differentiated from brainstorming because the experts don’t meet. The facilitator consults them individually and then a facilitator collates the answers in an iterative process. During this process, the experts comment on the collated results and the risks are updated based on feedback. The process continues until consensus is reached across all the experts. Needless to say this is a very slow and laborious process. Its reserved for the most challenging and difficult projects.

NOTE so many party of this question solving party 1 and 3