One definition of risk is that it is the possibility that an event will occur and adversely affect the achievement of an objective.
One definition of risk is that it is the possibility that an event will occur and adversely affect the achievement of an objective. An illustrative objective and event are presented below:
Objective: To safeguard the city’s citizens and resources
Event: An accident at a four-way intersection
a. Identify three potential adverse consequences of the event occurring.
b. Identify three inherent risk factors that make the event more or less probable.
c. The city’s management must decide how to respond to this risk. Two of its choices are to 1) avoid the risk or 2) reduce the risk to an acceptable level.
1. Explain how the city can avoid the risk.
2. Identify two ways the city can reduce the risk.
Risk management is the process of identifying, assessing, and controlling risks to achieve the desired objectives. In this case, the objective is to safeguard the city's citizens and resources, and the event is an accident at a four-way intersection.
To effectively manage this risk, it's important to understand the potential adverse consequences of the event, the inherent risk factors that make it more or less probable, and the available response options. Let's go through each of the questions you've presented to address this scenario.
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