Page 236 - RISK Management IC 86

Risk Management

Q6. Discuss the benefits and limitations of the
'Checklist' techniques of risk identification.

Ans. Refer Q7c May, 2005

Q7.a) Explain why and how a risk manager uses
statistical information on losses in risk
management decisions.

(b) How does risk manager deal with the problem
where there is no statistical information
available?

Ans7a) Before taking a sensible risk handling decision, some
estimate need to be taken to find their impact on the
organization. Monitoring of risk reduction measures and
other aspects of management programmes are only
possible if adequate and relevant data is there.

Statistics not only collects the numerical results but is a
tool used by many sciences which involves the
collection, organization, representation, analysis and
interpretation of data. The data may not always be in a
numerical form, but the objective is to extract and analyse
the essential features of the data in a quantitative manner.

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