Hazard risks, as described in risk quadrants, are typically managed by which group?

Hazard risks, as described in risk quadrants, are typically managed by which group?

• A. Chief financial officer
• B. Risk management professionals
• C. Senior operations
• D. Government agencies.

Answer: (B)

Hazard risks in this framework are pure risks that organizations actively identify, assess, and control through a formal program. The person or group best suited to lead this work is the risk management function, comprised of professionals who specialize in spotting exposures, estimating potential losses, implementing loss-control measures, and arranging risk transfer such as insurance. They coordinate with operations to put controls in place and with finance to budget and report, but the responsibility for designing and managing the hazard-risk program rests with risk management professionals. While a CFO handles the broader financial implications and senior operations implement day-to-day controls, neither role is primarily responsible for the structured management of hazard exposures. Government agencies regulate and oversee safety and compliance, not the internal management of an organization’s hazard risks.

Hazard risks in this framework are pure risks that organizations actively identify, assess, and control through a formal program. The person or group best suited to lead this work is the risk management function, comprised of professionals who specialize in spotting exposures, estimating potential losses, implementing loss-control measures, and arranging risk transfer such as insurance. They coordinate with operations to put controls in place and with finance to budget and report, but the responsibility for designing and managing the hazard-risk program rests with risk management professionals.

While a CFO handles the broader financial implications and senior operations implement day-to-day controls, neither role is primarily responsible for the structured management of hazard exposures. Government agencies regulate and oversee safety and compliance, not the internal management of an organization’s hazard risks.