BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Risk ranking is a process by which risks can be prioritised for action.
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Risk evaluation of identified hazards taking into account the existing controls and defences.
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Risk is a function of the probability of contact with (or exposure to) a hazard, multiplied by the likely severity of the consequences of that contact or exposure.
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A “hazard” is a condition, property or situation with the potential for loss.
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Detailed explanation-1: -Risk Ranking Mean ? Risk ranking is a process by which risks can be prioritised for action. Risk evaluation of identified hazards taking into account the existing controls and defences.
Detailed explanation-2: -1. The phase of a risk management process where all identified risks are assessed either quantitatively or qualitatively, to ascertain which ones have the highest likelihood of occurrence and which ones have the greatest consequence of occurrence so as to rank the risks in overall order of importance.
Detailed explanation-3: -Regardless of your specific prioritization approach, the idea is to rank from low risk to high risk. Focus on prioritizing risks with high impacts and high likelihoods. A risk matrix is an effective tool for prioritization; it lets you chart each risk by likelihood (one axis) and severity (the other axis).
Detailed explanation-4: -Risk prioritizing is the process of identifying the most critical risks so they can be addressed first. Priorities should be set using the likelihood of a risk and the potential impact it poses to the company.
Detailed explanation-5: -Risk priority: The risk priority is determined by assigning a risk score to each risk, which is obtained by multiplying the risk impact and probability values. If you’re using qualitative measurements, you’ll need to prioritize risks with the highest impact and highest probability.