CFI Risk Management questions with
actual answers.
Defining Risk Management ANS -As the probability and possible severity of accident or loss from
exposure to various hazards, including injury to people and loss of resources
Designed to identify hazards systematically
Defining Risk Management
Key Terms - Hazard ANS -A present condition, event, object, or circumstance that could lead to or
contribute to an unplanned or undesired event
Defining Risk Management
Key Terms - Risk ANS -The future impact of a hazard that is not controlled or eliminated. It is the
possibility of loss or injury. The level of risk is measured by the number
of people or resources affected (exposure); the extent of possible loss (severity); and likelihood of loss
(probability).
Defining Risk Management
Key Terms -Safety ANS -Freedom from those conditions that can cause death, injury, occupational
illness, or damage to or loss of equipment or property, or damage to
the environment.
Complete freedom from all hazardous
conditions is not possible
, Defining Risk Management
Principles of Risk Management - Accept No Unnecessary Risk ANS -carries no commensurate
(inproportion) return in terms of benefits or opportunities
Defining Risk Management
Principles of Risk Management - Make Risk Decisions at the Appropriate Level ANS -The appropriate
decision-maker is the person who can develop and implement risk controls
Defining Risk Management
Principles of Risk Management - Accept Risk When Benefits Outweigh the Costs ANS -All identified
benefits should be compared against all identified costs. Even high-risk endeavors may be undertaken
when there is clear knowledge that the sum of the benefits
exceeds the sum of the costs.
Defining Risk Management - Risk Management Process
List the six steps ANS -Identify the Hazard
Assess the Risk
Analyze Risk Control Measures
Make Control Decisions
Implement Risk Controls
Supervise and Review
Defining Risk Management - Risk Management Process
Steps 1 Identify the Hazard ANS -Defined as any real or potential condition that can cause degradation,
injury, illness, death, or damage to or
loss of equipment or property. Experience, common sense,
and specific analytical tools help identify risks
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