Risk Management Flashcards
7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management flashcards as text
Enterprise Risk Management (ERM) in an aviation organization differs from traditional risk management primarily because it:
Answer: Integrates risk management across all functions and links it to strategic objectives
ERM takes a holistic, organization-wide view that connects risk management to strategic planning — rather than managing risks in departmental silos — enabling better-informed executive decision-making.
What is the difference between a 'hazard' and a 'risk' in aviation safety terminology?
Answer: A hazard is a condition with potential to cause harm; risk is the likelihood and severity of harm occurring from that hazard
A hazard is any existing condition that could cause harm (e.g., ice on a runway), while risk is the assessed probability and severity of harm actually occurring as a result of the hazard.
ISO 31000 is relevant to aviation managers because it provides:
Answer: An internationally recognized framework and principles for risk management applicable across industries
ISO 31000 is a globally recognized risk management standard that provides principles, a framework, and a process applicable to any organization — including aviation companies seeking structured risk governance.
During a risk assessment, the 'consequence' of a hazard is best evaluated by considering:
Answer: The worst credible outcome if the hazard is realized, including safety, financial, and reputational impacts
Consequence evaluation considers the full range of potential impacts — safety injuries, operational disruption, financial loss, and reputational damage — from the worst credible scenario.
What is the role of a 'risk owner' in an aviation organization's risk management program?
Answer: The individual responsible for monitoring a specific risk and ensuring mitigation actions are implemented
A risk owner is assigned accountability for a specific risk — they monitor its status, drive implementation of controls, and report on residual risk to management.
Which risk response strategy involves shifting the financial consequences of a risk to a third party?
Answer: Risk transfer
Risk transfer moves the financial burden of a risk to another party — most commonly through insurance policies or contractual liability clauses — without eliminating the underlying hazard.
A key indicator that a risk management program is mature in an aviation organization is:
Answer: A high volume of voluntary hazard reports submitted by employees at all levels
A high volume of voluntary hazard reports indicates a strong safety culture where employees feel safe to report concerns — this proactive information flow is a hallmark of a mature SMS and risk management program.