Exam Objectives 5.2
Explain elements of the risk management process.
- Risk identification: Identifying a risk
- Risk assessment: Assessing the impact or risk:
- Ad hoc risk assessment: Spontaneous evaluation of a risk
- Recurring risk assessment: Regularly scheduled risk evaluations conducted at set intervals
- One-time risk assessment: Occasional, project-specific risk evaluations
- Continuous risk assessment: Ongoing, automated monitoring and updating of risk factor
- Risk analysis:
- Qualitative risk analysis: Subjective evaluation based on non-numeric factors
- Quantitative risk analysis: Data-driven assessment using numeric values and calculations
- Single Loss Expectancy (SLE): Estimation of potential loss from a single risk occurrence
- Annualized Loss Expectancy (ALE): Expected annual loss from a specific risk
- Annualized Rate of Occurrence (ARO): Average frequency of a risk happening
- Probability: Likelihood of a specific risk event occurring.
- Likelihood: The chance of a risk event taking place...