Risk Management & Mitigation Flashcards
7 cards from real CPS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Mitigation flashcards as text
What does 'risk appetite' represent in an organizational context?
Answer: The amount and type of risk an organization is willing to accept in pursuit of its objectives
Risk appetite defines the level and nature of risk an organization deliberately chooses to take on, balancing potential rewards against acceptable exposure.
Which leading indicator would most effectively provide early warning of emerging process risk?
Answer: Trend in near-miss incidents over the past three weeks
Near-miss trends are leading indicators because they signal deteriorating conditions before actual failures occur, enabling proactive intervention.
A process team discovers a risk late in the project lifecycle. The primary consequence of late risk identification is typically:
Answer: Fewer response options remain and corrective costs are higher
Risks identified late in a project or process lifecycle leave fewer viable response options and often require more expensive workarounds or rework.
What is the key difference between 'risk mitigation' and 'risk avoidance'?
Answer: Avoidance eliminates the activity causing the risk; mitigation reduces likelihood or impact
Risk avoidance removes the source of risk by eliminating the risky activity, while mitigation reduces the probability or impact without eliminating the activity.
In the context of FMEA, what does the Risk Priority Number (RPN) equal?
Answer: Severity × Occurrence × Detection
The RPN is calculated by multiplying the Severity, Occurrence, and Detection ratings together, producing a composite score that prioritizes failure modes for corrective action.
Which tool is most useful for visualizing and communicating the overall risk profile of a process portfolio?
Answer: Heat map (risk matrix)
A heat map or risk matrix plots risks by probability and impact using color coding, providing an instant visual summary of the overall risk landscape.
When a supplier delay threatens a critical process deadline, implementing dual sourcing is an example of which risk strategy?
Answer: Risk mitigation
Dual sourcing reduces dependency on a single supplier, thereby lowering the probability and impact of a supply disruption, which is classic risk mitigation.