NATIONAL INSTITUTE OF TRANSPORT

DEPARTMENT OF BUSINESS AND ENTERPRENEURIAL STUDIES

HIGHER DIPLOMA IN ACCOUNTING & TRANSPORT FINANCE-II

STREAMS A& B

MODULE NAME: RISK MANAGEMENT

MODULE CODE: BAU 07313

Discussion Questions: Set # 2

1. Briefly describe the meaning of the following terms:
(i) Risk Management
(ii) Secondary Risk
(iii) Risk Management Protocols
(iv) Risk Architecture
(v) Risk Breakdown Structure (RBS)
(vi) Delphi Technique
(vii) Ishikawa or Fishbone diagram
(viii) Expected Monetary Value (EMV)
(ix)Monte Carlo Technique
(x) Principal Risk Owner
2. As a Risk Management Professional you are assigned a task of devising and putting in
place a robust Risk Management Framework for NIDA:
(i) In a logical sequence outline and briefly explain the important steps you will follow in
designing the Risk Management Framework for NIDA.
(ii) Outline and briefly explain important principles you must observe when developing the
risk management frameworks

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3. With plausible examples, outline and briefly discuss the underlying motives of risk
management in Public Sectors Organizations (PSOs) and other business organizations
4. (a) What is Risk Management Policy
(b) When establishing the risk management policy, the policy should clearly state the
organization's objectives for, and commitment to risk management. Discuss at least
Seven important components the Risk Management Policy should typically address.
(c) With brief descriptions outline the salient features of a good Risk Management Policy?
5. Risk Management Plan is part and parcel of any organizational plans:
(a) Define the Risk Management Plan
(b) Enumerate and briefly explain the essential inputs for undertaking the Plan for Risk
Management process in PSOs and other business entities
6. Precisely but exhaustively, describe:
(a) The necessary tools and techniques for developing the Risk Management Plan
(b) The important elements of a Risk Management Plan for PSOs and other business
organizations
7. (a) Briefly discuss inputs, tools & techniques for preparation of a risk register
(b) Outline the essential contents of a risk register of a risk management practicing entity
8. State and clearly explain different types of tools for risk identification using the following
techniques:
(a) Information gathering technique
(b) Diagramming Technique
9. (a) What is qualitative risk analysis
(b) What is the key benefit of a qualitative risk analysis?
(c) Briefly discuss the inputs, tools & techniques for performing qualitative risk analysis
10. Briefly account for the key elements of the risk management plan used in the Perform
Qualitative Risk Analysis
11. After attending module 07313 at NIT, now you are a risk management professional
possessing key competences in performing qualitative risk analysis. Demonstrate your skills
and competences at least by doing all of the following:
(a) Quickly formulate one strategic objective of any organization of your choice;
(b) Identify two possible inherent risks that might hit the objective in (1) above; and
(c) Apply your expertise to perform qualitative risk analysis on the identified risks and
present the detailed analysis depicting all aspects that any surrogate/proxy qualitative
risk analysis report must posses.
12. Risk Register and Assumptions Log are the organizational documents that can be updated
as the outputs of the Perform Qualitative Risk Analysis process. With relevant examples,
state clearly the updates that can be done in the aforementioned organizational documents.

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13. The Risk Heat Maps and the graphs for the Risk Function normally have the same
applications and serve the same purposes. Elaborate
14. What is quantitative risk analysis?
(a) Briefly discuss the inputs, tools & techniques for quantitative risk analysis
(b) Explain the key benefit of performing the quantitative risk analysis
15. Quantitative Risk Analysis is used mostly to evaluate the aggregate effects of all risks
affecting the organization’s objectives. It generally comes after qualitative analysis process
and, in some cases, it may not be possible to execute this analysis due to lack of sufficient
data to develop appropriate models. Discuss
16. Briefly explain the usefulness of Expert Judgment as one of important techniques in
performing quantitative risk analysis
17. Plan Risk Responses is the process of developing options and actions to enhance
Opportunities and reduce threats/challenges to business objectives.
(a) Briefly explain the key benefit of this process
(b) With plausible examples, clearly describe the Risk Management techniques used to deal
With positive risks
(c) Outline the outputs of the Plan for Risk Response as an integral process in Risk
Management
18. (a) Briefly explain the key inputs required when devising and putting in place the risk
Management techniques
(b) Plan for risk responses is a crucial process in Risk Management practices. Clearly
describe the tools & techniques applied when developing risk responses
(c) Outline the Risk Management Techniques for dealing with negative risks
19. (a) Each risk response requires an understanding of the mechanism by which it will
address the risk. Clarify
(b) List and briefly examine the important attributes of a good planned risk response (risk
management technique/strategy)
20. With references to strategies for negative risks, outline the risk response strategies that are
appropriate for:
(a) Critical risks with high and extreme severities
(b) Less critical risks with low and moderate severities
21. (a) With relevant and pertinent example, describe precisely but exhaustively how can the
Management team apply risk avoidance strategy/technique/response to mitigate or
control risks with an organization
(b) With plausible example, account for the most radical risk avoidance strategy the
Management Team can adopt to deal with negative risks

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 (c) Enumerate at least four (4) ways that can be used to avoid some risks that arise early
in business organizations
22. (a) Transferring the risk simply gives another party responsibility for its management
and not elimination. Justify
(b) Risk liability transfer is the most effective risk response strategy for dealing with
financial risk exposure. Mention at least four (4) transference tools that can be used to
shift the impact of risk together with ownership of the response to a third party
23. (a) Describe the meaning of mitigation in relation to negative risks.
(b) What does mitigation imply to the risks probabilities and impacts. Justify your
answers with examples of relevant mitigation actions
24. (a) Illustrate the connotation that Acceptance is one of the risk response strategy for
dealing with negative risks
(b) Under which circumstances the risk acceptance is adopted as the most suitable risk
response strategy for dealing with identified risks?
(c) Under which scenario does the risk acceptance becomes active or passive ?
25. With relevant examples elucidate the following risk response strategies for dealing with
positive risks: i. Exploit ii. Share iii. Enhance iv. Accept
26. (a) What do you understand by the term contingency plan cum fallback plan
(b) Unveil /show that Expert Judgment is one of the tools/techniques under plan for risk
responses risk management processes
27. Briefly but exhaustively outline at least five outputs of plan for risk responses risk
management process
28. (a) Describe in details the term Control Risks as practiced in risk management practices
(b) Expound the key benefit and other purposes of control risks process as applied in risk
management practices
(c) Briefly explain the key inputs needed to implement the control risks process
29. (a) Risk Audits and Reserve Analysis are some of the tools and techniques that help to
perform the control risks process. Concisely but exhaustively, explain how do these
techniques work
(b) Outline with brief descriptions the outputs of the control risks process
30. Plan for Risk Management, Risk Identification, Qualitative & Quantitative Risk
Analysis, Plan for Risk Responses and Risk Control are iterative and interactive risk
management processes with reiterating inputs and outputs in a systematic and logical
sequence. Elaborate
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