CAM Risk Management 3

Question 1

Enterprise Risk Management (ERM) in an aviation organization differs from traditional risk management primarily because it:

Accepted Answer

Integrates risk management across all functions and links it to strategic objectives

Answer

Focuses exclusively on flight safety risks

Answer

Takes a siloed, department-by-department approach to hazard identification

Answer

Replaces SMS requirements mandated by ICAO

Question 2

What is the difference between a 'hazard' and a 'risk' in aviation safety terminology?

Accepted Answer

A hazard is a condition with potential to cause harm; risk is the likelihood and severity of harm occurring from that hazard

Answer

A hazard is a past event; a risk is a future event

Answer

A hazard only applies to aircraft; risk applies to personnel and passengers

Answer

Hazard and risk are interchangeable terms in aviation management

Question 3

ISO 31000 is relevant to aviation managers because it provides:

Accepted Answer

An internationally recognized framework and principles for risk management applicable across industries

Answer

Specific airworthiness standards for commercial aircraft

Answer

Mandatory certification requirements for aviation safety officers

Answer

Standards for aircraft noise and emissions compliance

Question 4

During a risk assessment, the 'consequence' of a hazard is best evaluated by considering:

Accepted Answer

The worst credible outcome if the hazard is realized, including safety, financial, and reputational impacts

Answer

How many times the hazard has occurred historically

Answer

Only the direct costs to repair equipment or compensate injured parties

Answer

The number of employees exposed to the hazard daily

Question 5

What is the role of a 'risk owner' in an aviation organization's risk management program?

Accepted Answer

The individual responsible for monitoring a specific risk and ensuring mitigation actions are implemented

Answer

The person legally liable for any accident caused by a risk

Answer

The executive who approves the overall risk management budget

Answer

The auditor who validates that risk assessments are accurate

Question 6

Which risk response strategy involves shifting the financial consequences of a risk to a third party?

Accepted Answer

Risk transfer

Answer

Risk avoidance

Answer

Risk mitigation

Answer

Risk acceptance

Question 7

A key indicator that a risk management program is mature in an aviation organization is:

Accepted Answer

A high volume of voluntary hazard reports submitted by employees at all levels

Answer

Zero safety incidents reported in the past 12 months

Answer

Minimal spending on safety-related training and equipment

Answer

Regulatory compliance with no FAA findings in the most recent audit