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49 Cards in this Set
- Front
- Back
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definition: risk |
Uncertainty about outcomes that can be either negative or positive
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definition: risk management
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The process of making and implementing decisions that enable an organization to optimize its level of risk
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definition: risk map (aka risk matrix)
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A template depicting the likelihood and potential impact/consequences of risks |
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These are 6 typical risk identification and analysis techniques
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• Questionnaires and checklists
• Workshops • Cause and effect analysis • Failure analysis • Future states analysis • Strategy analysis |
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Risk identification and analysis techniques: 2 examples of questionnaires and checklists
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• Risk analysis questionnaires
• Insurance coverage checklists |
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Risk identification and analysis techniques: 2 examples of workshops
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• Brainstorming
• Delphi |
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Risk identification and analysis techniques: 2 examples of cause and effect analysis
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• 5 Whys |
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Risk identification and analysis techniques: 3 examples of failure analysis
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• Hazard and operability studies (HAZOP)
• Fault tree analysis (FTA) • Failure mode and effects analysis (FMEA) |
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Risk identification and analysis techniques: 2 examples of future states analysis
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• Scenario analysis
• Monte Carlo simulation |
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Risk identification and analysis techniques: 2 examples of strategy analysis
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• SWOT analysis
• PEST analysis |
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acronym: SWOT
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Strengths, weaknesses, opportunities, and threats
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acronym: PEST
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Political, economic, social, and technological
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5 basic risk treatment techniques
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• Avoid the risk
• Modify the likelihood and/or impact of the risk • Transfer the risk • Retain the risk • Exploit the risk |
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definition: residual risk
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Risk remaining after actions to alter the risk’s likelihood or impact
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definition: speculative risk
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A chance of loss, no loss, or gain
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definition: pure risk
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A chance of loss or no loss, but no chance of gain
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definition: avoidance
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A technique that involves ceasing or never undertaking an activity so that the possibility of future gains or losses occurring from that activity is eliminated
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definition: loss prevention
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A risk control technique that reduces the frequency of a particular loss
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definition: loss reduction
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A risk control technique that reduces the severity of a particular loss
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definition: retention
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A risk financing technique that involves assumption of risk in which gains and losses are retained within the organization
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5 theories of accident causation
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• Sequence of events/domino theory (Heinrich)
• Energy transfer theory (Haddon) • Technique of Operations Review (TOR) • Change analysis • Job safety analysis |
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definition: domino theory
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An accident causation theory that presumes that accidents are the end result of a chain of accident factors
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The 5 dominos/elements of the chain in domino theory
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1. Ancestry and social environment
2. Fault of person 3. An unsafe act and/or mechanical hazard 4. The accident itself 5. The resulting injury |
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Which domino/link in the chain is usually removed to break the sequence?
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The third – unsafe act and/or mechanical hazard
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definition: energy transfer theory
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An approach to accident causation that views accidents as energy that is released and that affects objects, including living things, in amounts or at rates that the objects cannot tolerate
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the 10 strategies of energy transfer theory
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1. Prevent the creation of the hazard in the first place
2. Reduce the amount of hazard created 3. Prevent the release of an already-existing hazard 4. Modify the rate or special distribution of the hazard from its source 5. Separate in time or space the hazard from that which is to be protected 6. Separate the hazard and what is to be protected by a material barrier 7. Modify relevant basic qualities of the hazard 8. Make what is to be protected more resistant to damage from the hazard 9. Move rapidly to detect and evaluate damage that has occurred and counter its continuation and extension 10. Stabilize, repair, and rehabilitate the damaged object |
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definition: technique of operations review (TOR)
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An approach to accident causation that views the cause of accidents to be a result of management’s shortcomings
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5 basic principles of TOR
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• An unsafe act, an unsafe condition, and an accident are all symptoms of something wrong in the management system
• Certain circumstances, unless identified and controlled, will produce severe injuries • Safety should be managed like any other organizational function, with management setting achievable goals and planning, organizing, leading, and controlling to achieve them • Management must specify procedures for accountability if safety efforts are to be effective • The function of safety is to locate and define the operational errors that allow accidents to occur |
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definition: change analysis
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An analysis that projects the effects a given system change is likely to have on an existing system
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definition: job safety analysis
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An analysis that dissects a repetitive task, whether performed by a person or machine, to determine potential hazards if each action is not performed
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definition: system safety
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A safety engineering technique also used as an approach to accident causation that considers the mutual effects of the interrelated elements of a system on one another throughout the system’s life cycle
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the 4 features all systems have
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• Components
• Purpose • Environment • Life cycle |
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the 3 types of environment a system can have
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• Immediate physical environment
• Organizational (management) environment • Socioeconomic/legal environment |
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the 5 phases of a system’s life cycle
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• Conceptual
• Engineering • Production • Operational • Disposal |
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definition: conceptual phase
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A phase in the life of a system when the basic purpose and preliminary design of the system are formulated
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definition: engineering phase
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A phase in the life of a system when the system’s design is constructed and prototypes are created
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definition: production phase
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A phase in the life of a system when the actual system is created
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definition: operational phase
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A phase in the life of a system when the system is implemented
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definition: disposal phase
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A phase in the life of a system when the system reaches the end of its useful life and is disposed of
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list 4 basic loss control techniques
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• Avoidance
• Loss prevention • Loss reduction • Separation, duplication, and diversification |
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loss prevention : frequency of losses :: loss reduction : _____
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severity of losses
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loss prevention : _____ :: loss reduction : severity of losses
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frequency of losses
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_____ : frequency of losses :: loss reduction : severity of losses
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loss prevention
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loss prevention : frequency of losses :: _____ : severity of losses
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loss reduction
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definition: separation
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A risk control technique that isolates loss exposures from one another to minimize the adverse effect of a single loss
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definition: duplication
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A risk control technique that uses backups, spares, or copies of critical property, information, or capabilities and keeps them in reserve
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definition: diversification
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A risk control technique that spreads loss exposures over numerous projects, products, markets, or regions
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When is duplication more appropriate than separation?
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When an asset or activity is so important that the consequence of its loss justifies the expense and time of maintaining the duplicate
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What is the distinction between separation and duplication?
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How often the organization will be relying on the asset or activity
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