Class 607 Discussion 3

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Class 607 Discussion 3

The readings from Anderson et al. (2011), Hillson and Hulett (2004), IEC (2009) and PQRI (n.d) present essential insights into risk assessment. For instance, IEC (2009) presents a diagrammatic representation of the steps and phases to be considered in the risk assessment processes. After reading these materials and looking back to my initial risk assessment for day-long canoeing down Delaware River, I realized that the only part of the risk assessment process as provided by IEC (2009), which I overlooked in my first risk assessment, was the risk analysis stage. From my initial risk assessment, it is clear that I covered all the other three stages of the process, namely, risk identification, risk evaluation, and risk treatment, but I did not cover risk analysis. From what I understand from the readings, risks analysis entails considering the causes of risks, sources of risks, and their consequences, which are reflected in updated risk assessment.

In my initial assessment, I delineated risk treatment for each risk. Some different ways to treat risks that were not covered in this assessment could include but not limited to providing directorate’s mandatory procedures, a prior inspection of canoeing locations on the river for potential hazards, availing first aid equipment, and supervising the pacing and rest stops of canoeing participants. Different ways of treating risk in other scenarios beyond the canoeing exercise include risk acceptance, avoidance, transfer, mitigation, and retention. Lastly, an organization’s risk appetite is determined by the company’s risk attitude and risk capacity (Anderson et al., 2011). While risk attitude is the enterprise’s approach to handling risk, which can entail a risk-seeking or risk-averse approach, risk capacity refers to the amount of risk the enterprise can bear.

References

Anderson, R., Aujla, B., Clatworthy, G., Garrini, R., Galileo, S., Hopkin, P., …, & Williams, C. (2011). Guidance paper: Risk appetite and tolerance. London. Institute of Risk Management.

Hillson, D. A., & Hulett, D. T. (2004). Assessing risk probability: Alternative approaches. In Proceedings of PMI Global Congress (pp. 1-5).

International Electrotechnical Commission [IEC]. (2009). Risk management – Risk assessment techniques. International Standard. IEC.

Product Quality Research Institute [PQRI]. (n.d). Hazard & Operability Analysis (HAZOP). In Manufacturing Technology Committee – Risk Management Working Group: Risk Management Training Guides. Product Quality Research Institute (PQRI).