rm 1
is the possibility of something bad happening.
RISK
A situation involving exposure to danger.
RISK
is the potential for harm
RISK
ACHIEVEMENT OF BUSINESS STRATEGY AND OBJECTIVES
RISK MANAGEMENT
REDUCING THE NEGATIVE AND EMERGING OPPORTUNITIES
RISK MANAGEMENT
IT INVOLVES IDENTIFYING, ANALYZING, MEASURING, MONITORING AND CONTROLLING RISK
RISK MANAGEMENT
THE PROCESS TO ELIMINATE, REDUCE AND CONTROL RISK
RISK MANAGEMENT
ARE COORDINATED ACTIVITIES TO DIRECT AND CONTROL AN ORGANIZATION WITH REGARD TO RISK
RISK MANAGEMENT
5
RISK ASSESSMENT
Risk identification
Risk analysis
Risk evaluation
Treat the risk
Monitor and review the risk
pns meaning
philippine national standard
isi meaning
International Organization for standardization
Describe theRisk
Risk Identification
Find the risk.
Risk Identification
Recognize the risk
Risk Identification
Comprehend the nature of risk and its:
Characteristics
Sources
Consequences
Likelihood
Scenario
risk analysis
nature of risk
Characteristics
Sources
Consequences
Likelihood
Scenario
This is also referred to as Risk Response Planning
Treat the Risk
Support fact-based and science-based decision
Risk Evaluation
This is the step where you take your Project Risk Register and use it to monitor, track and review risks.
Monitor and Review the Risk
Enumerate Value creation and protection
Best available information
Structured and comprehensive process approach
Customize
Inclusive engagement of people
Integrated approach
Dynamic and continually improved
Considering human cultural factors
Continual improvement
8 RISK MANAGEMENT PRINCIPLES
INTEGRATED
STRUCTURED AND COMPREHENSIVE
CUSTOMIZED
INCLUSIVE
DYNAMIC
USE BEST AVAILABLE INFORMATION
CONSIDER HUMAN AND CULTURAL FACTORS
CONTINUAL IMPROVEMENT
is a set of proactive, businesswide practices that contribute to an organization's security, risk tolerance profile and strategic decisions.
INTEGRATED
Risk management is an integral part of all organizational activities.
INTEGRATED
The risk management framework and process are ------- and proportionate to the organization's external and internal context related to its objectives.
CUSTOMIZED
approach to risk management contributes to consistent and comparable results.
STRUCTURED AND COMPREHENSIVE
Risk management anticipates, detects, acknowledges, and responds to those changes and events in an appropriate and timely manner.
DYNAMIC
Risks can emerge, change, or disappear as an organization’s external and internal context changes.
DYNAMIC
Appropriate and timely involvement of stakeholders, their knowledge, views, and perceptions to be considered. This results in improved awareness and informed risk management.
INCLUSIVE
Information should be timely, clear, and available to relevant stakeholders
USE BEST AVAILABLE INFORMATION
Risk management explicitly takes into account any limitations and uncertainties associated with such information and expectations
USE BEST AVAILABLE INFORMATION
The inputs to risk management are based on historical and current information, as well as on future expectations
USE BEST AVAILABLE INFORMATION
Risk management is ---------- through learning and experience
CONTINUAL IMPROVEMENT
Human behavior and culture significantly influence all aspects of risk management at each level and stage.
CONSIDER HUMAN AND CULTURAL FACTORS
Risk assessment, which is the overall process of risk identification, risk analysis, and risk evaluation, should be conducted :
systematically,
iteratively, and
collaboratively,
TYPES OF RISKS
Compliance risk
Hazard risk
Control risk
Opportunity risk
who emphasized that risk can be categorized into four?
Hopkin 2018
involve government-mandated licenses and business permits and requirements.
Compliance (mandatory) risks
These are the risks that can prevent and deter the achievement of company's goals, missions, and objectives.
Hazard (or pure) risks
Ex. of Hazard risk
people
premises
process
products
Further, --------- are dependent on the successful management of company's resources and effective implementation
Control Risk
One classical example of --------- is internal financial control protocols. If control protocols are removed, there might be uncertainty on what will happen.
Control Risk
These are risks that can cause uncertainty or doubt about the ability to achieve company's goals, missions, and objectives.
Control Risk
Some organizations are willing to invest in high-risks business strategies in anticipation of high return on investment.
Opportunity risks
These risks arise because the organization is seeking to enhance the achievement of goals, missions, and objectives.
Opportunity risks
These are risks that are usually deliberately sought or embraced by the organization specifically for the future long-term success of any organization.
Opportunity risks
Example Compliance (mandatory) risks
It may constitute business clearance from a barangay level,
municipal level, or city level,
internal revenue offices,
security exchange,
license to operate,
compliance to fire and building code,
and insurance among others.
specific example Hazard (or pure) risks
Typical examples include insurable-type risks to include fire,
typhoon,
flood,
earthquake, and
injury
Risks for a business include
moving a business to a different location,
buying a new property, or
selling a new product or service
Opportunity risks
Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.
Control risk