Risk Map and Key Hazard Risks - Assignment Questions and Scenarios

The purpose of this assignment is to provide you with an opportunity to further explore risk treatment. You will work through a series of real-world scenarios to identify key hazard risks, categorize the key hazard risks, develop a risk map of the identified key hazard risks, and provide a recommendation for treating each key hazard risk. Following this you will work through a series of questions that ask you to analyze hazard assessment and risk management.

1. Read through all the assignment components and determine how you are going to complete the questions.

2. Using a Microsoft Word document and following APA formatting (font, spacing, title page, headers, citing, etc.), answer each of the questions below.
When you answer a question, ensure that your answer is in your own words, that you make reference to the concepts learned in modules 6–8, and that you properly cite any sources (in-text and on a References page). Sources can be from your textbook or from other places.

It is recommended that you try to find at least four (4) sources of information aside from your textbook. Include the question number as a header before each question in your document.

3. You have been hired as the risk manager for the Red Ribbon Vodka Distillery, which specializes in making a variety of flavours of vodka. It is your job to identify the various risks that the organization faces and determine the appropriate risk treatment techniques required to treat the various risks.
Below, you are presented with four different scenarios that occur at the distillery. 

For each scenario, you must do the following:

(1) identify the organization's key hazard risks;

(2) categorize the key hazard risks according to highest impact and likelihood, medium impact and likelihood, or low impact and likelihood;

(3) develop a risk map of the identified key hazard risks; and (4) provide a recommendation for treating each key hazard risk.

Scenario 1: A safety inspector has completed a review of the manufacturing equipment and has determined that there is a leak in one of the tanks causing it to release ethanol vapours. The maintenance department has indicated that the tank cannot be fixed for a period of 18 hours.

Scenario 2: A senior quality-assurance manager has access to a company-insured vehicle that he drives on a daily basis. Over the past six months, he has been involved in four car accidents. Rumours have been circulating around the plant that this same manager has been seen enjoying drinks after work at a pub down the street from the distillery.

Scenario 3: The company has made the decision to install a new alarm system at the manufacturing plant. Due to scheduling issues, the new alarm system installation process will take one week. This will leave the company without an alarm system for this period. The company does not currently have available funds to hire security guards. 

Scenario 4: The chief financial officer (CFO) of the Red Ribbon Distillery has specialized knowledge about the finances of the organization. He has not shared this knowledge with any managers or employees. Yesterday, the CFO resigned without any notice and accepted a job with another distillery.

1. Define and describe residual risk, inherent risk, and optimal risk.

2. How can an impact and time-risk map assist risk management professionals? Explain the purpose of a risk map. 

3. Explain what a risk register is.

4. Identify and explain the four dimensions used to analyze loss exposures.

5. Identify and explain the two approaches that a risk management professional would use when jointly analyzing the loss frequency and loss severity of a loss exposure.

6. Describe data credibility and the two issues that may prevent data from being good indicators of future losses.

7. Identify and explain the general categories of risk-treatment techniques and provide an example of when they would be used.