Written Questions on Risk Management

This document contains written questions on risk management. It covers topics such as risk acceptance criteria, principles of risk management, actuarial analysis, tools for measuring benchmarks, and more. The document provides detailed answers to each question, making it a valuable resource for students studying risk management. The subject, course code, course name, and college/university are not mentioned in the document.

Written Questions 1
RESEARCH TASK AND WRITTEN QUESTIONS
Module Name
Module Code
Institution Affiliation
1. What will risk acceptance and rejection criteria be based on?
The risk acceptance and rejection criteria will be based on:
 Acceptance of risk levels
 Refining of risk management procedure
Student Name, Unit Code, April 12, 2019

Written Questions 2
2. What are the eleven principles of risk management?
Actually the major eleven principles of risk management include:
 Establishment and sustaining of value
 It’s mainly the core part of various organizational processes
 Essential component in decision making
 Risk management highly portrays uncertainty
 It is always timed, systematic and also well structured
 Basically centered on available data
 It is highly tailored
 Takes into account cultural and human factors
 Always transparent and inclusive
 Risk management is always responsive dynamic and iterative to transitional factors
 Takes into account continuous enhancement within an organization
3. What is actuarial analysis?
Actuarial analysis is basically a type of asset to liability that is utilized by many financial institutions so that it can make sure that funds that are supposed to be paid
should have liabilities. For example, retirements investments and insurance are the most common financial products that required the use of actuarial analysis
4. What tools can be used to measure benchmarks or performance targets? List eight
Actually, performance targets or benchmarks aid organizations in becoming more successful and also being ahead of any rivalry in any business operation. The most
commonly used tools include:
 The key performance indicators (KPI) and the metrics
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Written Questions 3
 The 360-degree feedback
 The performance appraisals
 Management by objective (MBO)
 Performance management framework
 Recognition and rewarding programs
 Individual development schemes
 Individual assessment and
 The balanced scorecard
5. There are a large range of potential business risk elements that may impact on an organization. List eight
Potential business risk elements which have influence in an organization are:
 Natural pandemics such as human influenza, swine flu and the bird flus
 Various legal factors such as resolving conflicts, insurance problems, liabilities and other contractual breaches
 Natural disasters such as storms, floods, drought and bushfires
 International events including interruption of air traffic and other pandemics
 Improved technology such as computer networking defects and other problems linked with the use of traditional gadgets
 Other suppliers having issues with their respective business operation which in the long leads to failure of distributing their products
 Fluctuation in market prices and disparity noticed by consumer preference
 Lastly other utility services such are interruptions of supplying power, water, and transport services.
6. List and describe four sources of information that you might use when collating accurate, reliable and up-to-date information.
The main sources of information for acquiring accurate, reliable and latest information include:
Student Name, Unit Code, April 12, 2019

Written Questions 4
 The use of Questionnaires – this include forms that are always returned and completed by the respondent in context. This is a cheap technique where the
level of literacy is high.
 Through registration – the process of registration and acquiring of license is actually important for the entire enumeration process. Although restricted
variable might change at a slower rate.
 Interviewing – these are forms that are done by respondents through interviewing. This is much more expensive than the questionnaires although they are
much more effective for complex tasks.
 Direct observations – being in a position of making direct measurement is actually an effective technique for vast number of variables including catch but
is very expensive
7. Identify the relevant legislation and discuss the key pieces of it relating to one of the following:
Insurance Act 1873
a. Insurance contracts
Determination of the amount of capital an insurer holds in reservation to payment claims.
b. Privacy
The code of practice in the insurance policy represents a voluntary code, which protects the privileges of policy-holders.
c. Consumer protection
Consumers are urged to comply with the policy whereby the insurer is monitored by the Australia Finance Complaint Authority, who safeguards their rights.
d. Corporations law
Role spans off the contractual phase to post-contractual phases whereby handling of case and adherence of law is done.
Student Name, Unit Code, April 12, 2019

Written Questions 5
8. What is “mitigating capabilities”? Give one example
Mitigation capacity is the ability of minimizing risk loss based on the happening of an undeserving event/scenario. An example includes, based on various insurance
contracts, certain clauses and circumstances are unique so that reduced losses are incurred by the insurer. Always the actuaries are always given the duty of
underwriting the insurance policy and rules. This is done through enacting certain quantitative techniques and methods for evaluating the risks linked to the insured
personnel and coming up with an appropriate premium commensurate for the stated risk.
9. What organisational factors impact on organisational requirements within an organisation in relation to risk acceptability factors? Briefly describe
each
The major organizational factors that impact organizational requirement in the process of selecting a risk acceptability include:
Cost – actually the cost of hiring and the cost of employing there should be consideration of a particular method.
External influences – the chosen technique may thus take into account the approval from external parties i.e. the government
Adaptability – the method employed should be in a position of adapting to the organizational requirements.
10. What organisational information needs to be assessed in order to determine the risk acceptance requirements of an organisation?
The information to be assessed in order to determine the risk acceptance requirement within any organization includes:
 Risk evaluation
 Identification of the risks
 Analysis of various risks
 Formulation of the impact restriction criterion
 Risk indicator gathering and reporting
 Explaining of the nearby external environment
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Written Questions 6
11. Risk acceptability factors vary according to what?
Actually risk acceptability factors vary based on two criteria: a set of performance standards used for the establishment of and the enactment of relevant risk criteria at a
specified range, thus followed by various quantitative standards. Thus the risk acceptability factors in our context mainly involves restrictions on a per mission and on a
yearly basis.
12. What are governance structures, and what might they include?
Actually, governance structures include that process of balancing the main interests of the company’s stakeholders such as the shareholders, management, financiers,
the government and the local community. Governance structures may include the provision of frameworks used for acquiring the objectives of the company. It mainly
takes into account the sphere of the entire managerial process.
13. What terms and conditions are required for the risk acceptance of high risk factors? List five
The main terms and conditions involved in risk acceptance include:
 It is only used during the identification, assessing and prioritizing the risk involved for the purpose of reducing, monitoring and also controlling the risk
involved
 If there is need of mitigating various resources
 If there is a balance between the potential costs of the issue
 Avoidance - involves changing the plan for the elimination of the risks.
 Exploitation – risk is exploited through the incorporation of more sales staffs
14. When documenting the outline of the risk assessment strategy, what will it be necessary to include?
The major components to be included while documenting a risk assessment strategy include:
 The number of involved jurisdictions
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Written Questions 7
 The number of hazards
 Availed data
15. What methods might you use to collect feedback?
The various methods used for collecting feedback include;
 Through monitoring of social channels
 Evaluation of customer service execution levels
 Provision of proactive live chat aid
 Utilization of email survey from customers
 Through Facebook reactions
 By humanizing your online stores.
 Portraying positive customer feedback while in business
16. What is a WBS, and what is it used for?
Actually, WBS stands for work breakdown structure, as stated in project management and system engineering. It mainly a tool employed in explaining and categorizing
a group of projects with discrete components in a way that aids and explains deeply the main scope of the project.
17. Briefly describe the five main categories of resources.
The main five groups of resources are land, labor, enterprise, and technology.
 Land – this is a natural resource/commodity
 Labor- refers to the manpower invested in executing a certain duty or work
 Enterprise – this are all entrepreneurial activities/ commercial efforts done within any business entity
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Written Questions 8
 Technology – this is the level of know-how employed in a business and its recognized as a separate factor of production
18. Action plans should include all of the relevant information required to set out and achieve a goal. What information should be included on an action
plan?
 Potential risks
 Levels of the risks
 Reason for risk rating
 Action
 Resources required
 Responsibility
 Timeline
 Communication
 Review date
19. Outline the process for developing an effective communication plan.
A technique involved in planning or developing an efficient communication plan include:
 The identification of the main agenda of the communication process
 Identify your main audience
 Structure and design your message
 Take into account the resources involved
 Structure the obstacles and the emergencies involved
 Design an action plan
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Written Questions 9
20. Why is it necessary to monitor a risk acceptance strategy?
The main aim of risk monitoring is to be able to keep track of the risks that happen and the efficiency of the feedback that are always enacted within any organization.
Monitoring always aids in knowing whether the rules and regulations are being followed appropriately, or the initial assumptions relating to the risks involved are still
valid. Although the process of monitoring a risk assessment strategy is vital because the risk involved is always not static.
21. What is the purpose of evaluating a risk assessment strategy?
The purpose of risk management is to identify potential problems before they occur so that risk-handling activities may be planned and invoked as needed across the
life of the product or project to mitigate adverse impacts on achieving objectives. Risk management is a continuous, forward-looking process that is an important part
of business and technical management processes. Risk management should address issues
22. What results will need to be documented in relation to reviews and evaluations processes?
The main results to be documented in relation to the reviews include:
 The technical experts involved
 Some data input and output to be included in the appendices
 The size of the community involved
Student Name, Unit Code, April 12, 2019