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Risk Management Reviewer Lesson 1

The document outlines the importance of risk management, emphasizing the need for organizations to reliably manage risks to meet stakeholder expectations. It details processes for identifying, assessing, and prioritizing risks, as well as the benefits of implementing loss control measures to reduce costs and enhance safety. Additionally, it highlights the critical role of data in informing safety protocols and compliance with regulatory requirements.

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Keith bryan Cruz
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6 views

Risk Management Reviewer Lesson 1

The document outlines the importance of risk management, emphasizing the need for organizations to reliably manage risks to meet stakeholder expectations. It details processes for identifying, assessing, and prioritizing risks, as well as the benefits of implementing loss control measures to reduce costs and enhance safety. Additionally, it highlights the critical role of data in informing safety protocols and compliance with regulatory requirements.

Uploaded by

Keith bryan Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Risk Management Reviewer

1. An organization should be able to reliably provide its stakeholders with a reasonable


expectation that it can manage risk to an acceptable amount.
2. Past events can help predict future occurrences. While historical data is used in risk
assessment.
3. Databases that gather information on incidents and losses suffered by industry or area may
alert the business to possible dangers.
4. We should obtain an understanding of internal controls relevant to risk management
practices.
5. The severity of a risk is assessed at multiple levels.
6. Risks identified and included in a entity’s risk inventory are assessed to understand the
severity of each to the achievement of an entity’s strategy and business objectives.
7. The auditor is required to identify and asses the risk of misstatement whether due to fraud
or error, through understanding and its environment, including internal controls.
8. To categorize risks, organizations must first identify the sources of the risks, including
identifying potential sources of information, data, research, and reports that can assist risk
owners in identifying their relevant and applicable risk sources.
9. Focuses on the probability of a threat occurring and how it will impact the company.
10. Particularly useful for a complex risk management process that involves at looking at large
project or company area.
11. Risks scales that estimate probability
a. Low
b. Medium
c. High
12. The data is intended for public disclosure.
13. The data is not generally available to the public.
14. Protection of the data is required by law/ regulation.
15. Initial stage of risk management.
16. Multi Step Process that aims to reduce the impact of threats on organizational processes
17. Comparing the analyzed risk against predetermined criteria or standards.

Importance of R.E

1. By preventing accidents and injuries, organizations can significantly reduce costs associated
with medical claims.

2. By systematically identifying and assessing risk organizations can implement effective safety
measures, reducing the likelihood of accidents and injuries.

3. Data necessary to make informed decisions regarding safety protocols, training, and equipment
investments.

4. Help prioritize resources effectively. By understanding which risk pose the greatest threat.
18. Critical Aspect of risk management that involves identifying, analyzing, and evaluating
potential risk.

Primary Components of L.C.M

1. Once the risk is identified, they are evaluated in terms of severity and likelihood; this helps in
prioritizing the risk that needs to be addressed immediately versus those that can be deferred.

2. Involves identifying potential risks that could cause financial loss, damage to property injuries, or
fatalities.

3. It involves the continuous evaluation of loss control and measures to ensure their effectiveness
in achieving the desired goals.

4. Refers to the process of equipping employees with the necessary skills, knowledge, and attitudes
needed to identify potential hazards in the workplace and take the necessary steps to prevent or
minimize loss.

5. Is the process of assessing the potential risk and hazards that can occur in a workplace or
environment.

6. Refers to the process of reviewing and evaluating a workplace incident or accident to determine
the root cause and identify potential corrective measures.

7. Refers to the documentation and communication of information related to incidents, accidents,


hazards, and risks.

L.C.M Benefits

1. Can reduce the amount of money they spend on insurance premiums, workers’ compensation,
and legal fees.

2. Adapting a loss control program can help businesses to improve productivity in various ways.

3. can help a business comply with various regulatory requirements and avoid potential legal
liabilities.

4. A company can demonstrate its commitment to safety and risk reduction, which are key aspects
stakeholders look for.

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