Risk Analysis Flashcards

Which of the following BEST describes 'sensitivity analysis' in the context of quantitative risk assessment?

Answer: Testing how changes in input variables affect the overall risk model output

Sensitivity analysis varies individual input parameters to determine which variables have the greatest influence on the risk model's results.

A hospital risk manager is evaluating two risk reduction options. Option A costs $50,000 and reduces expected losses by $200,000. Option B costs $150,000 and reduces expected losses by $300,000. Based on cost-benefit analysis, which option is preferred?

Answer: Option A — it has a higher benefit-to-cost ratio (4:1 vs. 2:1)

Option A yields a 4:1 return ($200k/$50k) versus Option B's 2:1 return ($300k/$150k), making Option A more cost-efficient.

In risk analysis terminology, a 'near miss' (or close call) is MOST valuable because it:

Answer: Provides an opportunity to identify and fix system vulnerabilities before harm occurs

Near misses reveal hazardous conditions and system gaps with no patient harm, allowing corrective action before an adverse event occurs.

Which risk analysis tool uses a structured 'what-if' approach with guide words (e.g., MORE, LESS, NO, OTHER THAN) to identify process deviations and their consequences?

Answer: HAZOP (Hazard and Operability Study)

HAZOP uses predefined guide words applied to process parameters to systematically identify deviations that could lead to hazardous outcomes.

A risk manager presents a risk analysis report showing that the top five risk categories account for 78% of total organizational loss. This finding is an example of applying which principle?

Answer: Pareto principle (80/20 rule)

The Pareto principle holds that a small proportion of causes (roughly 20%) typically accounts for the majority (roughly 80%) of effects or losses.

When a healthcare organization uses 'benchmarking' as part of its risk analysis process, it is primarily attempting to:

Answer: Compare its risk performance metrics against industry standards or peer organizations

Benchmarking compares an organization's risk indicators against external standards or peer data to identify gaps and performance improvement opportunities.

Which of the following is an example of a 'leading indicator' in healthcare risk analysis?

Answer: Rate of safety culture survey scores indicating poor communication

Leading indicators measure conditions or behaviors that predict future adverse events, enabling proactive intervention before harm occurs.