SPMA 4V90 Lecture 1: ALL NOTES RISK MANAGEMENT
8 Apr 2016
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Document Summary
Risk: chance of something happening that can have an impact on achieving desired outcomes. Risk management: process used to identify, measure and control risks so as to better achieve desired outcomes. Retain risks: you don"t do anything because the risk is inherent in the spot. Reduce risks: take steps to reduce the likelihood of occurrence, and/or the consequences, largely by changing human behaviour. Transfer risks: accept the level of risk but you transfer this risk to others through contracts. Avoid risks: decide simply to not do something. Is an underlying system of values, beliefs and assumptions about how things are done in an organization. Representativeness: view events as part of a larger category or group. Availability of data: how easy is it to access information about the relative hazards of something. Brains have 2 thinking systems, fast and slow. But there can be problems when we use the wrong system in a given situation.
