Page 6 - EBOOK RISK MANAGEMENT

TABLE OF CONTENTS

SYNOPSIS ................................................................................................................................................................................................ iv

AUTHOR’S BIBLIOGRAPHY ............................................................................................................................................................ v
TABLE OF CONTENTS .................................................................................................................................................................... vi
LIST OF FIGURES .............................................................................................................................................................................. viii

LIST OF TABLES ................................................................................................................................................................................... ix
1.0 NATURE OF RISKS ...............................................................................................................................................................1
1.1 Risk and Uncertainty ..................................................................................................................................................1

1.1.1 Risk versus Uncertainty ..................................................................................................................................1
1.2 Cost Of Risk ......................................................................................................................................................................2

1.3 Peril, Hazard and Loss .............................................................................................................................................2
1.4 Risk Tolerance .................................................................................................................................................................4
1.5 Tutorial Questions 1 ..................................................................................................................................................5
2.0 FUNDAMENTALS OF RISK MANAGEMENT .........................................................................................................7

2.1 Risk Management .........................................................................................................................................................7
2.1.1 Definition of Risk Management. ...............................................................................................................7

2.1.2 Objectives of Risk Management. ..........................................................................................................7
2.2 Role & Methods of Risk Managers .................................................................................................................8
2.2.1 Risk Manager. .......................................................................................................................................................8

2.3 Risk Management Process ................................................................................................................................. 10
2.4 Risk Management Standard ............................................................................................................................ 10
2.4.1 ISO International Organization for Standardization ....................................................... 10

2.5 Tutorial Questions 2 .............................................................................................................................................. 16
3.0 RISK IDENTIFICATION .................................................................................................................................................... 18
3.1 Risk Identification ...................................................................................................................................................... 18

3.2 Classification Of Risk ............................................................................................................................................. 18
3.2.1 Pure and Speculative Risks .................................................................................................................... 18
3.2.2 Fundamental and Particular Risks .................................................................................................... 19

3.3 Types Of Pure Risk ................................................................................................................................................... 19
3.3.1 Personal Risks .................................................................................................................................................... 20
3.3.2 Property Risks .................................................................................................................................................... 20

3.3.3 Liability Risks ...................................................................................................................................................... 21
3.3.4 Financial Risks ................................................................................................................................................... 21

3.4 Tools Of Risks Identification ............................................................................................................................. 22
3.4.1 Physical Inspections ..................................................................................................................................... 22
3.4.2 Flowcharts ........................................................................................................................................................... 22

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