ARM 401 With Solutions Verified By Experts
today's conception of risk incorporates the idea that taking risks is fundamentally
necessary for growth
predictive modeling can empower decision making by uncovering previously
imperceptible risk factors
Internet of Things network of devices that sense their environment, process data, and
share it instantly
cloud computing enables orgs to store and share data through wireless internet and
networking services
blockchain technology -facilitates secure transactions without the need for a third party
-protects against cyber threats
-eliminates the need to verify the accuracy of risk management data
-lets risk managers spend more time on forward-looking functions
,ARM 401 With Solutions Verified By Experts
what fuels the future of holistic risk management? the capture, storage, and analysis of
data
covariance -the measure of how two random risk variables will change in relation to each
other
-calculates correlation between the variables
variance -the spread of the data set, or how far apart the numbers are in relation to the
mean
team approaches to risk identification 1. facilitated workshops
2. Delphi technique
3. scenario analysis
4. HAZOP
5. SWOT
why is it important to take a team-oriented approach to identifying risks? -provide diverse
perspectives on risks
,ARM 401 With Solutions Verified By Experts
-can reveal how risks are connected across an org, reducing the likelihood for risks to be
overlooked
facilitated workshops -a neutral party, who has no stake in the outcome, administers the
risk workshop and propels the group to achieve its goal
-wise to include people from diverse groups
-can be used for a specific project or process, as well as to identify those risks that affect overall
org objectives
-if using to identify all org risks: facilitator must be skilled in risk ID and management as well as
group communication and be prepared for a long-term project
delphi technique -uses the opinions of a select group of experts to identify risks
-typically they don't meet but respond to a survey or inquiry instead
-question-and-response cycle: answer question anonymously, see results, answer same question
until reach consensus
-benefits: cost-effective, eliminates group bias and encourages honesty by anonymity
-disadvantages: experts' opinions may be limited to their current thinking on a subject
, ARM 401 With Solutions Verified By Experts
scenario analysis -identifies risks and predicts the potential consequences of those specific
risks
-can help identify a range of potential consequences and prioritize risks
-benefit is it brings all the concerns of different parts of the org together so they can be addressed
as a whole
-should assemble an internal cross-functional team to get a multidimensional view
-disadvantage: may be limited by the imagination and brainstorming capabilities of the team
selected
HAZOP -a comprehensive review of a process or system
-a team of subject matter experts and stakeholders identifies the risks associated with a given
process and recommends a solution
-primarily used to design complex, scientific systems
-used when virtually all risks must be eliminated
steps in HAZOP process 1. subdivides the project or system design into small components
2. reviews each component to identify risks
3. identifies the cause and potential outcomes for each risk
4. develops a solution for each risk
today's conception of risk incorporates the idea that taking risks is fundamentally
necessary for growth
predictive modeling can empower decision making by uncovering previously
imperceptible risk factors
Internet of Things network of devices that sense their environment, process data, and
share it instantly
cloud computing enables orgs to store and share data through wireless internet and
networking services
blockchain technology -facilitates secure transactions without the need for a third party
-protects against cyber threats
-eliminates the need to verify the accuracy of risk management data
-lets risk managers spend more time on forward-looking functions
,ARM 401 With Solutions Verified By Experts
what fuels the future of holistic risk management? the capture, storage, and analysis of
data
covariance -the measure of how two random risk variables will change in relation to each
other
-calculates correlation between the variables
variance -the spread of the data set, or how far apart the numbers are in relation to the
mean
team approaches to risk identification 1. facilitated workshops
2. Delphi technique
3. scenario analysis
4. HAZOP
5. SWOT
why is it important to take a team-oriented approach to identifying risks? -provide diverse
perspectives on risks
,ARM 401 With Solutions Verified By Experts
-can reveal how risks are connected across an org, reducing the likelihood for risks to be
overlooked
facilitated workshops -a neutral party, who has no stake in the outcome, administers the
risk workshop and propels the group to achieve its goal
-wise to include people from diverse groups
-can be used for a specific project or process, as well as to identify those risks that affect overall
org objectives
-if using to identify all org risks: facilitator must be skilled in risk ID and management as well as
group communication and be prepared for a long-term project
delphi technique -uses the opinions of a select group of experts to identify risks
-typically they don't meet but respond to a survey or inquiry instead
-question-and-response cycle: answer question anonymously, see results, answer same question
until reach consensus
-benefits: cost-effective, eliminates group bias and encourages honesty by anonymity
-disadvantages: experts' opinions may be limited to their current thinking on a subject
, ARM 401 With Solutions Verified By Experts
scenario analysis -identifies risks and predicts the potential consequences of those specific
risks
-can help identify a range of potential consequences and prioritize risks
-benefit is it brings all the concerns of different parts of the org together so they can be addressed
as a whole
-should assemble an internal cross-functional team to get a multidimensional view
-disadvantage: may be limited by the imagination and brainstorming capabilities of the team
selected
HAZOP -a comprehensive review of a process or system
-a team of subject matter experts and stakeholders identifies the risks associated with a given
process and recommends a solution
-primarily used to design complex, scientific systems
-used when virtually all risks must be eliminated
steps in HAZOP process 1. subdivides the project or system design into small components
2. reviews each component to identify risks
3. identifies the cause and potential outcomes for each risk
4. develops a solution for each risk
