Unit 3 study gudie Lesson<\/p>\n
Background to Risk Assessment and Analysis<\/p>\n
In a previous unit, we covered risk identification and briefly touched on risk assessment. This unit will address<\/p>\n
common questions about risks and common misconceptions. How does one identify threats and the<\/p>\n
contributors to those threats? It really depends on the exposure, sensitivity, and risk profile of individuals and<\/p>\n
organizations. As we can conclude by now, risk is the opposite of opportunity, but risks can also be used to<\/p>\n
create value, depending on the organization. As individuals and organizations evolve, so does the complexity<\/p>\n
of risks. Therefore, each entity is unique in what a risk is and what value can be derived from it. As an<\/p>\n
example, some risks are acceptable to some entities while the same risks can be catastrophic to others. This<\/p>\n
can be defined in terms of a risk profile.<\/p>\n
The risk management approach and the risk defined by organizations are contextual. Thus, the risk<\/p>\n
management process needs to be uniquely tailored to address the risks and decision-making processes of<\/p>\n
the organization. Furthermore, the risk management approach needs to be continuously calibrated to align to<\/p>\n
the changes taking place in the environment.<\/p>\n
Risks Sources and Causes<\/p>\n
Hazards and threats can be considered one and the same, but in different states. Newsome (2014) expands<\/p>\n
on this concept by providing an illustration of a river far away as the hazard, but once the river overflows<\/p>\n
causing a potential flood nearby, it becomes a threat. Thus, the threat\/hazard effect depends on a given state<\/p>\n
of the source. However, this should not be confused with risk. Risk is NOT a different state of the source.<\/p>\n
UNIT III STUDY GUIDE<\/p>\n
Risk Assessment and Analysis<\/p>\n
BBA 4226, Risk Management 2<\/p>\n
UNIT x STUDY GUIDE<\/p>\n
Title<\/p>\n
Newsome (2014) reminds us that risk is considered the potential harm as a result of the state of the source<\/p>\n
such as the potential losses and damages caused by a fire.<\/p>\n
Finding and mitigating the root cause of a potential threat is preferred rather than dealing with the risks after<\/p>\n
the fact. The identification and mitigation of the root cause will therefore eliminate the hazard, threat, and risk.<\/p>\n
Figure 1 on page 52 in your textbook illustrates the causes and sources of heart disease. The figure not only<\/p>\n
illustrates the causal effects of specific behavioral and socioeconomic factors but, if analyzed carefully, we<\/p>\n
can also identify the root causes, hazards, threats, and risks of heart disease (Newsome, 2014).<\/p>\n
The Department of Homeland Security (DHS) outlined an approach to identify sources and causes of risk<\/p>\n
through a process called Threat and Hazard Identification and Risk Assessment (THIRA). The THIRA process<\/p>\n
consists of the following four steps:<\/p>\n
or area).<\/p>\n
develop a mitigation plan.<\/p>\n
estimate the resources needed for avoidance, mitigation, or acceptance (Department of Homeland<\/p>\n
Security, 2013)<\/p>\n
Note: Capabilities refer to prevention, protection, mitigation, and response.<\/p>\n
Risk Strategies<\/p>\n
Newsome (2014) says that risks are identified as they relate to a target and its vulnerabilities. A target\u2019s<\/p>\n
vulnerability refers to the fact that a target can be harmed by a threat (Newsome, 2014). A target\u2019s<\/p>\n
vulnerability exposure changes over time depending on environmental and situational conditions. As an<\/p>\n
example, a new car parked on a busy street increases the vulnerability to being damaged as compared to the<\/p>\n
same car parked in a garage. In essence, the vulnerability of the target, in this case the car, increases in<\/p>\n
direct correlation to the exposure.<\/p>\n
A risk management strategy does not wait for risks to take place. A risk management plan starts with<\/p>\n
examining potential causes of hazards and threats by developing strategies to minimizing the exposure of<\/p>\n
targets to risks. A risk strategy plan prepares for potential risks and outlines the actions required to deal with<\/p>\n
the impact of those risks and to recover from them. Presidential Policy Directive-8 (or PPD-8) integrates risk<\/p>\n
avoidance using prevention, protection, mitigation, response, and recovery.<\/p>\n
\uf0b7 Prevention: Capabilities needed to prevent or stop a hazard from becoming a threat.<\/p>\n
\uf0b7 Protection: Capabilities to protect against man-made or natural acts from risks.<\/p>\n
\uf0b7 Mitigation: Capacity to reduce damage to targets or lessening the impact from threats.<\/p>\n
\uf0b7 Response: Capabilities needed to save or protect targets after an event\/incident has occurred.<\/p>\n
Figure 2: An Example of Context Description<\/p>\n
(Department of Homeland Security. 2013, p. 10)<\/p>\n
BBA 4226, Risk Management 3<\/p>\n
UNIT x STUDY GUIDE<\/p>\n
Title<\/p>\n
\uf0b7 Recovery: Capacity of an individual, organization, community, or nation to help targets affected by an<\/p>\n
incident recover efficiently. Recovery concentrates on timely restoration and renewal of the targets<\/p>\n
(Department of Homeland Security, 2011).<\/p>\n
Summary<\/p>\n
Risk assessment starts with the identification of hazards, threats, and the level of exposure of targets. The<\/p>\n
overall risk profile of an entity can be composed of a complex set of variables that vary depending on the<\/p>\n
target. The hazards and threats also vary as a function of time. In addition, there are overlaps between some<\/p>\n
of the potential hazards and threats. In essence, the number of combinations of potential risks can be<\/p>\n
different, contextually speaking.<\/p>\n
Risks can be defined and evaluated by identifying the various factors or variables unique to those risks<\/p>\n
(hazards, threats, and exposure). Risks can also be evaluated based on past experience and unique<\/p>\n
elements for that potential risk, making it a subjective evaluation of risks. Fundamentally, the evaluation of<\/p>\n
risks is based on what is perceived as acceptable or not acceptable in terms of the outcomes of those risks.<\/p>\n
References<\/p>\n
Department of Homeland Security. (2011). Presidential Policy Directive \/ PPD-8: National Preparedness.<\/p>\n
Retrieved from https:\/\/www.dhs.gov\/presidential-policy-directive-8-national-preparedness<\/p>\n
Department of Homeland Security. (2013, August). Threat and Hazard Identification and Risk Assessment<\/p>\n
Guide: Comprehensive Preparedness Guide (CPG) 201. (2nd ed.). Retrieved from<\/p>\n
http:\/\/www.fema.gov\/media-librarydata\/8ca0a9e54dc8b037a55b402b2a269e94\/CPG201_htirag_2nd_edition.pdf<\/p>\n
Newsome, B. (2014). A practical introduction to security and risk management. Thousand Oaks, CA: Sage.<\/p>\n","protected":false},"excerpt":{"rendered":"
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