quantitative Risk Analysis

Risk assessments will help to priorities risks and provide information on the probability of harm arising and severity of harm by understanding the hazard, combine assessments of probability and severity to produce an assessment of risk and it is used in the assessment of risk as an aid to decision making. Construction sites are dangerous places where injury or death or illness can cause to workers. Select one typical hazard at a construction site and conduct a full risk assessment for that hazard. You are allowed to make assumptions to answer this question.

If a company identifies four risks with a risk score as follows: Risk An oven fire may result in the destruction of a store. A cybersecurity attack may result in the theft of customer data. A store employee getting sick may result in them backing out of their shift last minute. An employee stealing from a cash register may result in loss of cash. Which risk is the highest priority? Risk Score O An employee stealing from a cash register may result in loss of cash O A cybersecurity attack may result in theft of customer data OA store employee getting sick may result in them backing out of their shift last minute O An oven fire may result in the destruction of a store 5 15 4 6

Risk Management at MS Company MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery.     Question   1.   Advise on the different types of insurance that MS could have pursued in order to mitigate against risks in its nature of business.   2.   Explain how each of these the insurance types can be benefitial to MS’s business.

Risk Management at MS Company MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery.   Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or…

. Companies that are developing a formalized risk management process are encouraged to develop a risk or threat profile and use their intuition to create an inventory of risks that seem most relevant to their operations. At that stage, they are encouraged to rank risks using which of the following approaches?      a The risks with the greatest impact on staff and the highest anticipated frequency of occurring take top priority      b The risks with most significant impact on the business and the highest probability of occurring take top priority       c The risks with the highest probability of occurring and the highest anticipated frequency take top priority      d The risks with the highest anticipated frequency of occurring and the most significant public visibility take top priority

Companies that are developing a formalized risk management process are encouraged to document and specify the desired outcomes associated with each risk identified. What is the purpose of this activity? Listing the outcomes desired by the organization creates a basis for prioritizing risks Listing the outcomes desired by the organization creates a basis for determining which mitigation strategies should be pursued Listing the outcomes desired by the organization creates a basis for assessing the potential impact of risks Listing the outcomes desired by the organization creates for assessing the costs associated with each risk

From a risk management perspective, what are possible interpretations of 'probability'?

How to compare other measures of risk with VaR(value at risk)? Choose a company and compute the various measure of risk and construct a risk management strategy.

It can require or provide both qualitative and quantitative data to decision makers for use in risk management. What is it?

According to the Institute of Internal Auditors, risk is a combination of the probability of an event and its consequence and that consequences can range from positive to negative True or False?

Can a risk matrix be used to show the inherent level of the risks in time of likelihood and magnitude? Ture or False?

Explain to a company why statistical analysis is an important tool to use in risk management.

EXPLAIN THE IMPORTANCE OF A MASTER RISKS LIST.  Consider that the master risks list identifies the condition causing each risk, the potential adverse effect (consequence), outcome (frequently called the downstream effect), and the criterion or information used for ranking, such as probability, impact, and exposure

Match the appropriate Risk Management Document with the description The document with the purpose of guidng risk managment decision making Risk Management Cost of Risk Assessement The document which outlines the fundumental guidelines of risk mangement within the enterprise Risk Management Policy Statement (RMPS) The document which is clear, concise and preferablly short Risk Management Mission Statement (RMMS) Standard Operating Procedure (SOP) The more detailed document which may include explicit instructions to a person performing the function The document which is developed through the risk management function, but circulated and communicated through the enterprise >

MCQs:   Managers need to examine internal and external factors for risk management. External factors for risk may include all except,     The economic environment  Competitor’s activity  Work culture and practice  New technological changes    SWOT analysis is commonly suggested method for:  Controlling risk factors of an organization  Implementing a new process  Quality Improvement   Managing challenges and opportunities    During a change scenario manager need to,  Understand and communicate the context of change  Facilitate processes and operations  Be innovative and tolerant of risk taking  All of the above

Classify the following risks into variation, foreseen uncertainty, unforeseen uncertainty, and chaos:h. A drug is found to have dangerous side effects following its launch

A category of economic risk is:    Liability risk      Personal risk      Property Risk      All of the answers are correct      None of the answers are correct

There are certain subjects that Mr. Peter must consider when negotiating with his supplier. Explain any four subjects Mr. Peter must discuss with his supplier. Note, you are required to There are certain subjects that Mr. Peter must consider when negotiating with his supplier. Explain any four subjects Mr. Peter must discuss with his supplier. Note, you are required to paraphrase the relevant theory before you apply it to the scenario. paraphrase the relevant theory before you apply it to the scenario.

Suggest possible systematic approaches that you would use to identify risk at comapny in order to facilitate an effective risk management programme and ultimately prevent this risk catastrophe.

Discuss the meaning of the term downstream effect in risk management.

Consider the planned construction of a new office building in a downtown area of a large city when office space is in surplus demand (i.e. more office space than users). Construct a risk analysis that examines the various forms of risk (technical, commercial, financial etc) related to the creation of this office building

In conducting a threats and risk assessment, what factors are used in calculating the initial risk values? Select one: a. Unmitigated likelihood and consequences b. Likelihood and consequences

Distinguish between the information and statistics views in risk management. Information and Statistics should appear as two separate headings and explained thereunder.

Argue for and against the use of the two common approaches to risk analysis by referring to benefits and limitations of each.

Topic: ProbabilityGoal: In your business planning, you will employ mathematics probability to increase your chances of success.You play the role of a tiny business owner who wants to expand into a much larger enterprise. You must write a written report and deliver it to the group on the most likely outcome(s) of the business you wish to start.The target audience is a group of small company owners who could be interested in partnering with you. Product: A written report on the business's likely results that will be given to the group. Success Criteria: The written report that will be provided must be... - Represents genuine business problems or patterns. - Persuasive, based on probability mathematics.

A salesperson uses three different airlines. The probabilities of switching from one airline to another in consecutive flights are shown below. If the last flight was on Delta, what is the probability that the next was on American?   American Delta Southwest American 0.5 0.25 0.25 Delta 0.2 0.6 0.2 Southwest 0.3 0.3 0.4 A   0.5 B   0.2 C   0.25 D   0.6