Introduction to Risk Management Exam

Assignment 1

Readings

Chapter 1	Introduction to Risk Assessment and Treatment
Chapter 2	Root Cause Analysis
Chapter 3	Business Continuity Management
Chapter 4	Physical Property Risk

Question 1 Get Answers 

Match the energy release strategy with the following real life situations:

1 – Prevent the initial marshalling of the form of energy

2 – Reduce the amount of energy marshalled

3 – Prevent the release of energy

4 – Modify the rate or spatial distribution of release of energy from its source

5 – Separate in space or time the energy being released from the susceptible structure

6 – Separate the energy being released from the susceptible structure with a material barrier

7 – Modify the contact surface or basic structure which can be impacted

8 – Strengthen the structure which might be damaged by the energy transfer

9 – Move rapidly in detecting and evaluating damage and counter its continuation and extension

10 – Take long term action after the emergency period to reduce additional damage

____Use of sidewalks and the phasing of pedestrian and vehicular traffic

____Slowing the burning rate of explosives

____Reducing the amount and concentration of reagents in high school laboratories

__Preventing the manufacture of gunpowder

____Use of lightning rods

____Reducing the speed of vehicles

____Preventing the raising of babies above the floor (cribs, chairs, etc) from which they may fall

____More stringent earthquake codes

____Making lollipop sticks out cardboard

____Boxing gloves

____Use of electrical and thermal insulation

____Sprinklers

____Fire doors

____Vaccines

____Salvage operations

___Reducing the slope of ski slopes for beginners

____Preventing the escape of tigers

____Rehabilitation

____Padded vehicle dashboards

____Emergency medical care

Question 2

The executive offices of a corporation are located on the top floor of its high-rise headquarters building. The corporation also leases space on this floor to a restaurant. The risk management professional for the corporation believes that the reliable operation of the elevators in this building is vital to the corporation’s overall operating efficiency.

The risk management professional is contracting for detailed system safety analyses of these elevators. For each of the following types of system safety analysis, (i) describe its distinguishing characteristics and (ii) explain the specific contribution that this type of analysis would make to the reliable operation of the elevators:

1. Failure Mode and Effects Analysis
2. Fault Tree Analysis

Question 3 Get Answers 

A fire may start in one building as a result of the building being exposed to fire originating in another building. The frequency and severity of fire from exterior exposures is influenced by the characteristics of the exposing building (where the fire originated) and the exposed building.

1. a) Identify and describe five features of an exposing building that influence frequency and severity.
2. b) Describe five actions that a Risk Manager for an exposed building can take to reduce the frequency or severity of fires from exterior exposures.

Question 4

A school district in rural Ontario is concerned that it may not have enough fuel oil to heat its schools during severe winter months and, therefore, may lose its funding if it is unable to provide the mandated number of days of education. Such a fuel shortage may arise because of either the excessive cost or the total unavailability of fuel oil.

The risk manager for the school district has been asked to offer recommendations for a five-year plan for the school district to overcome this exposure of loss of funding. The risk manager believes that this loss exposure is one to which some risk management techniques can be properly applied. For each of the following risk management techniques, (1) define the technique and (2) explain why that technique could or could not be used by the school district to overcome this exposure:

1. a) Separation/duplication/diversification of exposure units
2. b) Exposure avoidance
3. c) Loss reduction
4. d) Loss prevention

Question 5

1. a) Briefly describe internal supply-chain exposures and vulnerabilities.
2. b) Briefly describe external supply chain exposures and vulnerabilities.

Assignment 2

Readings

Chapter 5	Intellectual Property and Reputation Risk
Chapter 6	Legal and Regulatory Risk
Chapter 7	Management Liability and Human Resource Risk

Question 1

1. a) Identify and briefly describe the four common types of protection for intellectual property.
2. b) Identify risk control measures that can be used to protect trade secrets.
3. c) A computer hacker extracted the secret recipe of a soft drink manufacturer’s best-selling soft drink and then anonymously e-mailed the recipe to the manufacturer’s competitors. The hacker remained unidentified. Can the competitors use the recipe? Explain why or why not.

Question 2

1. a) Describe how a liability loss might arise from the following loss exposures:
2. Operations liability
3. Products liability

• Completed operations

1. b) Describe clauses that an organization might add to contracts to remove or limit liability.

Question 3 Get Answers 

1. a) Describe the duties and responsibilities of an organization’s directors and officers.
2. b) Identify the facts that must be shown to prove a claim of hostile work environment.

Question 4

1. a) Industrial hygienists have developed a number of general methods of control designed to minimize the bodily harm employees may suffer from workplace hazards such as excessive noise. Briefly describe each of the following methods of industrial hygiene control, and explain how each method might be applied to reducing employee hearing loss from the intermittent noise of a metal working punch press:
2. Isolation
3. Personal protective equipment

• Supervision

1. Medical controls
2. Job rotation
3. b) An organization is opening a manufacturing facility in a foreign country considered a high-risk area. Identify measures the organization can implement to reduce the possibility of a kidnap and ransom situation.

Question 5

Sound ergonomics reduces the adverse effects of fatigue among an organization’s employees.

1. a) Describe the physical features of a workplace environment that tend to cause fatigue, and explain how proper workplace design can remove or minimize these features.
2. b) What are the measures that can control fatigue in any environment?

Assignment 3

Readings

Chapter 8	Environmental Risk
Chapter 9	Crime and Cyber Risk
Chapter 10	Fleet Risk
Chapter 11	Smart Products and Risk Management

Question 1

In considering how losses from fleet operations can be controlled, fleets are viewed as systems with subsystems and system components.

1. a) Identify and briefly describe the four common characteristics of every system, and briefly discuss the components of a fleet system.
2. b) For the elements of a motor vehicle transportation system, (vehicles, maintenance, operators and cargo), discuss how the potential hazards from each of these elements can be controlled.

 Question 2

1. a) Describe how these source treatment methods modify pollutants that have already been produced:
2. i) Recovery process
3. ii) Physical and chemical treatment processes

iii)Thermal processes

1. iv) Biological processes

1. b) Identify and briefly describe basic risk control measures for source reduction.

Question 3

1. a) Describe the categories of cyber risk liability loss exposures and provide an example of each.
2. b) Describe two ways an organization may be exposed to reputation risk through social media.

Question 4

A property manager is considering investing in measures to mitigate the hazard risks associated with building ownership. Identify examples of such measures that are enabled by smart products.

 Question 5

1. For each of the crimes listed below, (1) define the crime, and (2) give one physical control an organization can apply to prevent the crime from being committed against it:

1. Counterfeiting/forgery

• Vandalism

1. Arson
2. Terrorism
4. Aside from physical controls, most crimes against an organization can be prevented through appropriate procedural and managerial controls. For each of the following crimes, describe (1) two procedural controls and (2) two managerial controls:
5. Burglary
6. Robbery

• Shoplifting

1. Fraud
2. Embezzlement.