Risk Assessment & Management Flashcards

A risk matrix is primarily used to:

Answer: Prioritize risks by likelihood and impact

A risk matrix plots risks by their probability and potential impact to help prioritize which risks require immediate attention.

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

Answer: Risk transfer

Risk transfer shifts the financial burden of a risk to another party, such as through insurance or contractual agreements.

A school identifies that a new construction project next door increases noise levels during standardized testing. This is best classified as:

Answer: An environmental risk

Environmental risks arise from external physical conditions such as noise, weather, or construction that affect operations.

In risk management, 'residual risk' refers to:

Answer: Risk remaining after controls are applied

Residual risk is the level of risk that remains after mitigation controls and safeguards have been implemented.

Which step in the risk management process involves gathering data and estimating the probability and severity of potential events?

Answer: Risk analysis

Risk analysis quantifies or qualifies risks by evaluating their likelihood and potential impact after identification.

A school administrator decides to cancel an outdoor field trip after reviewing a severe weather forecast. This action best represents:

Answer: Risk avoidance

Risk avoidance eliminates the activity or condition that creates the risk, in this case canceling the trip to avoid weather-related hazards.

Which tool is most commonly used to systematically identify potential risks across multiple categories in educational settings?

Answer: Risk register

A risk register is a structured document used to record, track, and manage all identified risks and their response plans.