,ISR3701 Assignment 1 (COMPLETE ANSWERS) Semester
1 2025 - DUE April 2025; 100% TRUSTED Complete,
trusted solutions and explanations.,,WE WISH YOU A
GOOD LUCK
ALL QUESTIONS ANSWERED
1. (10 Marks) Define the term "risk management" and briefly
explain what it entails. Elucidate your answer with examples.
Risk Management:
Risk management is the process of identifying, assessing, and
prioritizing risks, followed by the coordinated application of
resources to minimize, monitor, and control the likelihood or
impact of unfortunate events or to maximize the realization of
opportunities. The goal of risk management is to protect an
organization or individual from potential threats while also
making informed decisions about potential risks that could lead
to benefits or growth.
What It Entails:
1. Risk Identification: The first step involves identifying the
potential risks that could affect an organization or project.
These risks could be financial, operational, legal,
environmental, or strategic. The identification process can
involve techniques like brainstorming, checklists, or expert
interviews.
o Example: A company might identify the risk of
cyberattacks or data breaches.
2. Risk Assessment: After identifying risks, the next step is
to assess the likelihood of these risks occurring and the
, potential impact on the organization. This step involves
evaluating both the probability and consequences of each
identified risk.
o Example: A hospital assesses the likelihood of a data
breach in its electronic health records system and the
potential damage it could cause in terms of reputation,
legal repercussions, and financial losses.
3. Risk Mitigation/Control: Once the risks are assessed, risk
management strategies are developed to minimize or
eliminate those risks. This can include transferring the risk
(e.g., insurance), avoiding the risk (e.g., discontinuing a
risky project), reducing the risk (e.g., improving security
systems), or accepting the risk (e.g., if the risk is minimal
or the cost of mitigation outweighs the potential loss).
o Example: A company may decide to purchase cyber
insurance to mitigate the financial impact of a
potential cyberattack.
4. Risk Monitoring and Review: Risks should be continually
monitored to track any changes in their likelihood or
impact. As the environment or business context changes,
risk management strategies may need to be adjusted or
revisited.
o Example: A manufacturing plant continually monitors
health and safety risks and reviews its safety protocols
to ensure that workers are protected and compliant
with regulations.
Example of Risk Management in Action:
Project Management: In a construction project, risk
management might involve identifying potential hazards
1 2025 - DUE April 2025; 100% TRUSTED Complete,
trusted solutions and explanations.,,WE WISH YOU A
GOOD LUCK
ALL QUESTIONS ANSWERED
1. (10 Marks) Define the term "risk management" and briefly
explain what it entails. Elucidate your answer with examples.
Risk Management:
Risk management is the process of identifying, assessing, and
prioritizing risks, followed by the coordinated application of
resources to minimize, monitor, and control the likelihood or
impact of unfortunate events or to maximize the realization of
opportunities. The goal of risk management is to protect an
organization or individual from potential threats while also
making informed decisions about potential risks that could lead
to benefits or growth.
What It Entails:
1. Risk Identification: The first step involves identifying the
potential risks that could affect an organization or project.
These risks could be financial, operational, legal,
environmental, or strategic. The identification process can
involve techniques like brainstorming, checklists, or expert
interviews.
o Example: A company might identify the risk of
cyberattacks or data breaches.
2. Risk Assessment: After identifying risks, the next step is
to assess the likelihood of these risks occurring and the
, potential impact on the organization. This step involves
evaluating both the probability and consequences of each
identified risk.
o Example: A hospital assesses the likelihood of a data
breach in its electronic health records system and the
potential damage it could cause in terms of reputation,
legal repercussions, and financial losses.
3. Risk Mitigation/Control: Once the risks are assessed, risk
management strategies are developed to minimize or
eliminate those risks. This can include transferring the risk
(e.g., insurance), avoiding the risk (e.g., discontinuing a
risky project), reducing the risk (e.g., improving security
systems), or accepting the risk (e.g., if the risk is minimal
or the cost of mitigation outweighs the potential loss).
o Example: A company may decide to purchase cyber
insurance to mitigate the financial impact of a
potential cyberattack.
4. Risk Monitoring and Review: Risks should be continually
monitored to track any changes in their likelihood or
impact. As the environment or business context changes,
risk management strategies may need to be adjusted or
revisited.
o Example: A manufacturing plant continually monitors
health and safety risks and reviews its safety protocols
to ensure that workers are protected and compliant
with regulations.
Example of Risk Management in Action:
Project Management: In a construction project, risk
management might involve identifying potential hazards
