ACCOUNTING-“Risk convergence is the primary cause of most disasters.”

Risk Convergence

Internal Auditing

Published

By

The
Institute of Internal Auditors, Inc.

“Risk convergence is the primary cause of most disasters.”

– Glenn E. Sumners

Tenerife

In his book “ Operational Risk Management:
A Case Study Approach to Effective Planning and Response,” Mark D. Abkowitz
identified 10 common risk factors relative to man-made accidents, terrorist
acts, and natural disasters.

• Research (watch video of) the
  Tenerife disaster that involved the crash of two 747’s.
• Use the risk factor scorecard
  template within this file to document one or two examples for each of the
  risk factors that happened at Tenerife Airport.
• Answer
  the three executive summary questions located after the risk factor scorecard.
• Please
  type your name on the last page at end of this file.

Risk Factor Scorecard for Tenerife

Risk Factors Caused or Impacted Outcome

Rank	Risk Factor	Description of Risk Factor
1	Communication Failure
2	Lack of Planning and Preparedness
3	Economic Pressure
4	Political Agendas
5	Not Following Procedures

Risk Factor Scorecard for Tenerife

Risk Factors Caused or Impacted Outcome

Rank	Risk Factor	Description of Risk Factor
6	Arrogance
7	Design and Construction Flaws
8	Schedule Constraints
9	Inadequate Training
10	Deferred Maintenance

Executive
Summary

The
Tenerife disaster is particularly unforgettable due to the series of events and
coincidences that preceded it.

Questions:

1. What are the primary lessons learned?

1. What are your primary recommendations?

1. What is the moral of the story?

Please Type Your Name

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