Contents

• This paper answers the following questions on Risk Management -
• Task 1 (10 marks)
Consider the following statement:
• 'Risk managers should mainly focus on the consequences of an event rather than its likelihood as these consequences determine the impact on the business.'
• Please discuss the interaction between likelihood and consequences and develop an argument for and against the statement. Your commentary should contain a critical argument with a brief introduction, stating where you stand and how you argue your case, both for and against and then a conclusion. (10/35 marks)
• Task 2 (10 marks)
Please overview the risk management decision to retain, transfer or avoid risk. What are some of the key considerations a risk manager should take into account when making this decision? Is it simply a cost (to transfer) versus benefit (of transfer) decision? (10/35 marks)
• Task 3 (5 marks)
Utilising your selected problem from the first and / or second assessment, please discuss whether the risk of this can be transferred in any form. If it can please discuss the merit of this using a cost versus benefit framework. If it cannot be transferred please discuss ways in which it could be managed internally. (5/35 marks)
• Task 4 (5 marks)
Discuss the role of a risk manager in business. How prominent should the role of the risk manager should be within the wider management of the business, i.e. when compared with other management functions such as strategy, governance, product development, marketing, finance, operations, etc. (5/35 marks)
• Task 5 (5 marks)
Please provide a summary of your own perception of risk and how your understanding of risk, risk analysis, and risk management has developed over the session. Please identify what you consider to be the three critical components of risk and risk management. (5/35 marks)


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