Page 7 - EBOOK RISK MANAGEMENT

3.4.3 Checklists ............................................................................................................................................................. 23
3.4.4 HAZARD and Operability Studies (HAZOP) ............................................................................. 24

3.4.5 Fault and Logic Tree Analysis ............................................................................................................. 24
3.4.6 Interviews .............................................................................................................................................................. 25
3.4.7 Analysis of Financial Statements ........................................................................................................ 25

3.5 Tutorial Questions 3 .............................................................................................................................................. 26
4.0 RISK MEASUREMENT AND ANALYSIS ................................................................................................................. 28
4.1 Risk Measurement and Analysis ..................................................................................................................... 28

4.2 Risk Matrix ....................................................................................................................................................................... 28
4.3 The Measurement of Probability .................................................................................................................. 29
4.3.1 Mutually Exclusive Events ........................................................................................................................ 30

4.3.2 Compound or Joint Probability Outcomes ............................................................................... 32
4.3.3 Expected Value .............................................................................................................................................. 33

4.3.4 Variance and Standard Deviation ................................................................................................. 34
4.4 Tutorial Questions 4 .............................................................................................................................................. 37
5.0 RISK MANAGEMENT TECHNIQUES ..................................................................................................................... 39

5.1 Risk Management Techniques ........................................................................................................................ 39
5.1.1 Risk Control ......................................................................................................................................................... 39
5.1.2 Risk Financing ................................................................................................................................................... 41

5.2 Selection & Implementation of Risk Management Techniques .............................................. 42
5.3 Monitoring And Reviewing The Risk Management Programme ............................................ 43
5.4 Tutorial Questions 5 .............................................................................................................................................. 44

6.0 RISK MANAGEMENT PROGRAMME ................................................................................................................... 46
6.1 Fire Risk ............................................................................................................................................................................. 46
6.2 Property Risk ................................................................................................................................................................. 47

6.3 Liability Risk ................................................................................................................................................................... 47
6.4 Enterprise Risk .............................................................................................................................................................. 48
6.5 International Trade Risk ....................................................................................................................................... 48

6.6 Online Fraud Risk ...................................................................................................................................................... 51
6.7 Cyber Security Risk .................................................................................................................................................. 52

6.8 Fidelity Risk..................................................................................................................................................................... 52
6.9 Burglary Risk .................................................................................................................................................................. 54
6.10 Work Place Risk .......................................................................................................................................................... 55
6.11 Tutorial Questions 6 .............................................................................................................................................. 56

REFERENCES ....................................................................................................................................................................................... 61

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