DQM Core Units
Organizational Risks and Opportunities glossary
Every term this guide defines, A to Z, each with the chapter that teaches it. Open it when a word in a question is unfamiliar, and test yourself on it in the last week: cover the definition and say it in one sentence.
13 terms from the free first chapter
A
- Accept (retain)
Knowingly accept the risk, typically where it falls within risk appetite (see Defining risk).
Taught in The risk management framework
- Avoid
Decide not to proceed with the activity that carries the risk.
Taught in The risk management framework
C
- Compliance (legal) risk
Arises from failing to meet legal or regulatory requirements.
Taught in The risk management framework
E
- Exploit
Take deliberate action to increase exposure to a risk that represents an opportunity.
Taught in The risk management framework
F
- Financial risk
Relates to cash flow, credit, market or investment exposure.
Taught in The risk management framework
O
- Operational risk
Arises from day-to-day processes, people or systems failing.
Taught in The risk management framework
R
- Reduce (mitigate)
Take action to lower the likelihood or impact of the risk.
Taught in The risk management framework
- Reputational risk
Damage to how the organisation is perceived by its stakeholders.
Taught in The risk management framework
- Risk
The effect of uncertainty on objectives, which can be negative (a threat) or positive (an opportunity).
Taught in The risk management framework
- Risk appetite
The amount and type of risk an organisation is willing to pursue or retain.
Taught in The risk management framework
- Risk management
Coordinated activities to direct and control an organisation with regard to risk.
Taught in The risk management framework
S
- Strategic risk
Threatens the achievement of high-level organisational objectives.
Taught in The risk management framework
T
- Transfer (share)
Shift some or all of the risk to another party, e.g. through insurance or a contract.
Taught in The risk management framework
The full glossary adds every term from the other 5 chapters, A to Z, each with the chapter that teaches it.