Operational risk management

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Operational Risk Management - Assessing & Mitigating risk is critical.
For more about Project Succes, Read: Key Points To Project Succes @
http://mediotype.com/blog/development/quick-key-points-to-project-management-success

Published in: Business, Economy & Finance
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Operational risk management

  1. 1. Operational Risk Management ... Planning Mission Success
  2. 2. Overview •  What is ORM •  Applicability •  Principles •  The five steps •  Risk matrix •  Example
  3. 3. What is ORM? Risk management is the process of identifying, assessing, and controlling risks arising from operational factors and making decisions that balance risk costs with mission benefits. Risk is characterized by both the probability and severity of a potential loss that may result from hazards.
  4. 4. Applicability Risk management assists management in: •  •  •  Conserving resources and avoiding unnecessary risk. Making an informed decision Identifying feasible and effective control measures where specific standards do not exist. Risk management does not: •  •  •  •  Inhibit the management's flexibility and initiative. Remove risk altogether, or support a zero defects mindset. Require a GO/NO-GO decision. Remove the necessity for standard practices.
  5. 5. Principles 1.  Making risk decisions at the appropriate level. 2.  Accepting no unnecessary risk
  6. 6. The five steps 1.  Identify hazards 2.  Assess hazards to determine risk 3.  Develop controls and make risk decisions 4.  Implement controls 5.  Supervise and evaluate
  7. 7. Risk matrix
  8. 8. Hazard Assessment Managing for critical risks avoids catastrophic failures
  9. 9. Questions? Email: diveinto@mediotype.com
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