Choose a type of Risk that is of professional interest to you. Ensure first that you understand what is meant by the phrase “Type of Risk”. For my benefit and your own describe the role you have or envisage having in managing this type of Risk.
- Define/describe the Risk properly (see Module 2 and www.derekviner.com Chapter 4) [5 marks]
- Which Risk Parameters would you practically use to enable this Risk to be compared in significance with other Risks of a different nature? Briefly explain your reasons for choosing them and for not choosing the others that are possible. [5 marks]
- Propose both nominal and associated ordinal scales that would suit your chosen Risk parameters given the situation in which the Risk exists. (5 marks)
- What Risk Factors do you believe should be used to allow this particular Risk to be compared with other Risks of the same type? Identify, explain and describe them and state to which part of the TSM they are relevant. [8 marks]
- Propose both nominal and associated ordinal scales that would suit these Risk Factors given the situation in which the Risk exists. [5 marks]
- Discuss the practical utility of the scales you have proposed. In what ways could the words be misunderstood? How easily would a user distinguish between the different points on the scales? In other words, critically evaluate your scales for practicality. Read the papers discussing the use of the risk matrix before responding to this question, but note you are not being asked to propose or use a risk matrix here, just to understand the types of problems that can exist with such scales.