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

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.

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 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.

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

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.

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

Consequence evaluation considers the full range of potential impacts — safety injuries, operational disruption, financial loss, and reputational damage — from the worst credible scenario.

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

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.

(CAM) Certified Aviation Manager Practice Test

(CAM) Certified Aviation Manager Practice Test

CAM Risk Management 3