Summary: Engineering Risk Management In Organizations

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• 1 Risk Management isn't only a matter of financial risk

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• How do you manage a hazard?

  o Identify hazards in workplace (different domains, i.e. safety, health, environment, ethics, security, quality)
  o Determine direct causes: “Why does this hazard exist?”
  o Determine indirect causes
  o What is the risk related to the hazard?
  o Determine prevention measures for direct causes and indirect causes
  o Make a systematic inventory of prevention measures
  (HAZARD: Open door, RISK: Unauthorized access, radiation, DIRECT CAUSE: Inattention, INDIRECT CAUSE: Bad control/education, PREVENTION MEASURES: Better control, education)

• What is a systematic inventory of prevention measures with hazards?

  STOP (in order of importance)
  · Strategic
  · Technological
  · Organizational
  · Personal

• How is risk measured?

  “The likelihood that something happens (i.e. probability) of an event and its severity.”
  
  
  o Effect of uncertainties on objectives
  o Probability of something going wrong (old definition for a specific part of risk – insurance)

• What is the difference between systemic and analytic thinking?

  o Systemic
  § Whole is primary, parts are secondary
  § Dynamic, circular, complexity, resiliency
  
  
  o Analytic thinking
  § Parts are primary, whole is secondary
  § Static, linear, simple cause-consequence relationships, additive elementary properties)

• 2 Introduction to engineering and managing risks

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• How does the known/unknown table look?

  Knowledge/lack of knowledge: Available knowledge, information, data
  Closed/open mind: Do people have an open mind toward the possibility

• What is the safety risk trias?

  Negative uncertainty triangle
  - If one of the elements is removed, there is no safety/security risk
  
  Example: Fryer in use
  Hazard: Heat
  Exposure: Person working with the fryer
  Loss: Burns
  Risk: Probability of children having burns of a certain degree

• What is the security risk trias?

  Negative uncertainty triangle
  - If one of the elements is removed, there is no safety/security risk

• How may the likelihood of an event be expressed?

  - Frequency (number of events per unit)
  - Probability (specified event following prior event)
  - Qualitative   
  
  Magnitude of loss determines how risk is described diminutive-catastrophic spectrum

• Simplified interpretation of negative risk

  Probability of a risk depends: 
  
  - On the frequency of a target's exposire to a hazard (ie. Likelihood of occurence) 
  - On the evaluation of consequence corresponding to a measurement (severity of those consequences)

• What are both formula for risk?

  Simplest: R = F x G (Risk = Frequence x Severity)
  
  More complex: R = (N x T / Pre) x (D / Pro) 
  
  Risk = (Number of set targets x Average exposure time of each target at risk / Prevention implemented to affect N or T) x (Crude hazard / Level of protection implemented against this hazard)