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HAZOP Process Steps 1. Divide project/system into small components
2. Review components to identify risk
3. Identify cause and potential outcomes of risks
4. Develop solutions to risks
5. Ensure solutions work and reevaluate
SWOT analysis (strengths, weaknesses, opportunities, threats) A SWOT analysis is useful
when there is a specific goal, such as determining whether engaging in a new product or project
is feasible. It's less useful for analyzing current processes and procedures to identify risks unless
there is a specific objective, such as whether a procedure conforms to new regulations or
customer specifications. A goal is necessary to keep the SWOT analysis from becoming too
general or failing to provide actionable information. Generally "go" or "no go"
Risk Threshold The range or amount of risk that is acceptable
Radio Frequency Identification (RFID) A technology that uses radio frequency to identify
objects
,ARM 401 With Solutions Verified By Experts
Artificial Intelligence Computer processing or output that simulates human reasoning or
knowledge
Computer Vision A technology that simulates human vision
Risk registers should always do these 4 things: Identifies the organization's risks
appropriately
Prioritizes risks according to their potential effects on the organization
Allows for collaboration and instant updating by risk managers and stakeholders
Tracks improvement actions to take, when they're taken, and when a follow-up or review will
occur
Risk Register A tool developed at the risk owner level that links specific activities,
processes, projects, or plans to a list of identified risks and results of risk analysis and evaluation
and that is ultimately consolidated at the enterprise level
Risk Map vs Risk Register An organization would use a risk register to identify, describe,
and prioritize the risks of either a specific circumstance (such as a process, project, or risk event)
or the organization as a whole. It's essentially a ledger to document risks and all information
related to them. A risk map, on the other hand, is developed after a risk register and incorporates
,ARM 401 With Solutions Verified By Experts
information from the register. A risk map provides a visual representation of a risk register's data
to show which risks are the highest priority for risk managers and owners.
Relationship between inherent, residual, and optimuml risk if the difference between the
inherent risk and what the residual risk will be after a treatment is applied is small, either the risk
doesn't need to be treated or the treatment itself isn't effective enough. The difference between
the residual risk and optimum risk represents how much further a risk can be reduced
Risk Map A template depicting the likelihood and potential impact/consequences of risks
Inherent Risk The level of risk that would be faced if it were to remain untreated or no
action were to be taken to alter the level of risk
Residual Risk The level of risk remaining after actions are taken to alter the level of risk
Optimum Risk The level of risk that is within an organization's risk appetite
Coordination the act of improving efficiency and reducing redundancy by some
combination of arranging, assigning, organizing, or scheduling activities
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Collaboration vs. Cooperation Collaboration is the act of working together to achieve a
shared objective. Cooperation is the act of working together to achieve individual objectives
instead of a shared objective
Predictive techniques, such as decision tree analysis and event tree analysis: assign
numerical values to various components related to a risk and combine them to produce a
probability estimate
Risk Control A conscious act or decision not to act that reduces the frequency and/or
severity of losses or makes losses more predictable
Three categories of accident causes: poor management, safety policy, and personal or
environmental factors
Sequence of Events (Domino Theory) The sequence of events theory proposes that these
five accident factors can form a chain of events that, like dominos, lead in succession to the
resulting accident and injury:
1. Ancestry and social environment, such as inherited psychological disorders and dysfunctional
social environments
HAZOP Process Steps 1. Divide project/system into small components
2. Review components to identify risk
3. Identify cause and potential outcomes of risks
4. Develop solutions to risks
5. Ensure solutions work and reevaluate
SWOT analysis (strengths, weaknesses, opportunities, threats) A SWOT analysis is useful
when there is a specific goal, such as determining whether engaging in a new product or project
is feasible. It's less useful for analyzing current processes and procedures to identify risks unless
there is a specific objective, such as whether a procedure conforms to new regulations or
customer specifications. A goal is necessary to keep the SWOT analysis from becoming too
general or failing to provide actionable information. Generally "go" or "no go"
Risk Threshold The range or amount of risk that is acceptable
Radio Frequency Identification (RFID) A technology that uses radio frequency to identify
objects
,ARM 401 With Solutions Verified By Experts
Artificial Intelligence Computer processing or output that simulates human reasoning or
knowledge
Computer Vision A technology that simulates human vision
Risk registers should always do these 4 things: Identifies the organization's risks
appropriately
Prioritizes risks according to their potential effects on the organization
Allows for collaboration and instant updating by risk managers and stakeholders
Tracks improvement actions to take, when they're taken, and when a follow-up or review will
occur
Risk Register A tool developed at the risk owner level that links specific activities,
processes, projects, or plans to a list of identified risks and results of risk analysis and evaluation
and that is ultimately consolidated at the enterprise level
Risk Map vs Risk Register An organization would use a risk register to identify, describe,
and prioritize the risks of either a specific circumstance (such as a process, project, or risk event)
or the organization as a whole. It's essentially a ledger to document risks and all information
related to them. A risk map, on the other hand, is developed after a risk register and incorporates
,ARM 401 With Solutions Verified By Experts
information from the register. A risk map provides a visual representation of a risk register's data
to show which risks are the highest priority for risk managers and owners.
Relationship between inherent, residual, and optimuml risk if the difference between the
inherent risk and what the residual risk will be after a treatment is applied is small, either the risk
doesn't need to be treated or the treatment itself isn't effective enough. The difference between
the residual risk and optimum risk represents how much further a risk can be reduced
Risk Map A template depicting the likelihood and potential impact/consequences of risks
Inherent Risk The level of risk that would be faced if it were to remain untreated or no
action were to be taken to alter the level of risk
Residual Risk The level of risk remaining after actions are taken to alter the level of risk
Optimum Risk The level of risk that is within an organization's risk appetite
Coordination the act of improving efficiency and reducing redundancy by some
combination of arranging, assigning, organizing, or scheduling activities
, ARM 401 With Solutions Verified By Experts
Collaboration vs. Cooperation Collaboration is the act of working together to achieve a
shared objective. Cooperation is the act of working together to achieve individual objectives
instead of a shared objective
Predictive techniques, such as decision tree analysis and event tree analysis: assign
numerical values to various components related to a risk and combine them to produce a
probability estimate
Risk Control A conscious act or decision not to act that reduces the frequency and/or
severity of losses or makes losses more predictable
Three categories of accident causes: poor management, safety policy, and personal or
environmental factors
Sequence of Events (Domino Theory) The sequence of events theory proposes that these
five accident factors can form a chain of events that, like dominos, lead in succession to the
resulting accident and injury:
1. Ancestry and social environment, such as inherited psychological disorders and dysfunctional
social environments
