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Business Risk Management Series


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Risk today is no longer an uncertainty. The Time Cycle Module helps to analyze, measure, manage and mitigate Risk in business, finance, technology, career, etc. by use of variance analysis on a
day to day basis. The methods to manage risk are application based and not difficult to comprehend . However to manage risks one must be alert
and agile updating positions from time to time,
re-working business process and business solutions continuously to live and survive in this fiercly competative and dangerous world.

Published in: Economy & Finance, Business
  • A great reading on risk
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  • This presentation is a part of a series of our presentations which are available under 'More by the User' window at the right of the slide. They are best understood if viewed chronologically :

    1) Living Dangerously : Managing Risks in Business

    2) Business Risk Case Study Ba 31

    3) Business Risk Case Study Ba 32

    4) Business Risk Case Study Ba 33
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  • Hi, U may also see the Case studies for managing market risk, credit based risk and operational risk by variance based predictive analytics now available at Slideshare.............................. ..............................Business risk case study Ba31 ........... ..................... ...............................Business risk case study Ba 32......................................
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  • Juicy Jewelry
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  • The best thing I like about your model is that it is not restricted to financial risk but is for normal business use. Shall look forward to the case studies.
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Business Risk Management Series

  1. 1. Living Dangerously :<br />managing Risks <br /> in business<br />Business Risk Time Cycle Module - Ba01<br />
  2. 2. What is a Risk ?<br />The conventional definition of Risk<br />termed it as an<br />uncertainty<br />
  3. 3. If it was good it was called an opportunity<br />If it was bad it was known to be a threat<br />
  4. 4. Risk in a business therefore was an uncertainty that <br />could affect the business objective<br />Business objectives<br /><ul><li>Production Objective
  5. 5. Sales Objective
  6. 6. Cost Objective
  7. 7. Time Objective
  8. 8. Quality Objective
  9. 9. Survival Objective
  10. 10. Growth Objective
  11. 11. Dominance Objective
  12. 12. Employee Objective
  13. 13. Social Objective
  14. 14. Client Objective</li></ul>Uncertainty <br />
  15. 15. Risk Management in business was done by collecting historical data and analyzing problems that had happened in the past<br />
  16. 16. However with Business becoming intensely competitive in Price <br />( Incremental and entry level pricing) <br />and Time ( Just in Time inventory management ) the Relevance of Risk Management increased exponentially.<br />Risk was no longer an uncertainty<br />
  17. 17. Rather Risk today is a certainty<br />It must be analyzed, measured responded and mitigated regularly<br />
  18. 18. What are the top business Risks in today’s environment ?<br /><ul><li> Protecting liquidity : Fa01 : Threat
  19. 19. Digitizing Business Process : Ta01 : Opportunity
  20. 20. Controlling operating costs : Fa31: Threat
  21. 21. Revamping the workforce : Ca01: Opportunity
  22. 22. Globalizing business operations : Ba51: Opportunity
  23. 23. Re-working business solution : Ba71 : Opportunity</li></ul>Believe it or not, it’s more opportunities than threat.<br />
  24. 24. Traditional Method<br />Time Cycle Module<br /><ul><li>Risk is a Certainty
  25. 25. Risk is a item of daily check list
  26. 26. Risk is a “When “ factor
  27. 27. Risk is an Uncertainty
  28. 28. Risk is an extraneous factor
  29. 29. Risk is a “ if “ factor</li></ul>Methods for Risk analysis<br /><ul><li> Sensitivity analysis
  30. 30. Monetary value analysis
  31. 31. Decision Tree Analysis</li></ul>Method for Risk Analysis<br /><ul><li> Variance Analysis</li></li></ul><li> Why, The Time Cycle Module<br /><ul><li>Because Business Process and Business solutions today have a time bound shelf life
  32. 32. Because after the global credit crisis, businesses require frequent and time bound monitoring, and risk models require updated assumptions..
  33. 33. Because surpluses have now vanished and optimum utilization of resources are achieved by use of the Time based work Modules.
  34. 34. Because technology is timing out age old business practices
  35. 35. Because digitization and rationalization is needed for survival and growth. Such rationalization is to be carried out from time to time.
  36. 36. Because at the systemic level Risk could be very dynamic & damaging requiring focused and updated rationalized data for risk modeling.
  37. 37. Because annual, quarterly or monthly planning, and reporting is becoming irrelevant as situations are changing by the week.</li></li></ul><li>What is the Time Cycle Module<br /><ul><li>The most important resource in the world today is Time
  38. 38. Fortunately it is one uniform standard all over the world without any dispute.
  39. 39. Minutes, Hours, Days, Weeks and Months are standard for the Chinese, the American, the French or the Iraqi.
  40. 40. The Time Cycle Module TCM is a unit of 1 week of Time for which any activity or work is planned monitored and controlled for deliverance.
  41. 41. Each weekly module is harmonized with the other to grow into </li></ul> monthly, quarterly or yearly targets & schedules for operations as well as reporting. The week is a unit module of time in TCM<br />
  42. 42. Risk Analysis in the TIME CYCLE MODULE TCM<br /><ul><li>Risk Analysis in the TCM is done by variance analysis
  43. 43. Risk in the TCM is no uncertainty. It is a measured deviation
  44. 44. Risk is measured by calculating deviation of measured parameters against baseline figures
  45. 45. Risk in the TCM is defined as the deviation of “the objective achieved” from the “objective desired” as per the Terms Of Reference.</li></li></ul><li>Risk when pre-assessed is called Risk Management.<br />Risk management can be done through Risk identification.<br />For identification of Risk the “Terms of Reference” and historical trends must be preset.<br />For Risk identification a route map must be set against the “Terms Of Reference.”<br />Deviation of actual performance over the route map is the risk. <br />
  46. 46. Risk, Risk Cause and Risk Effect<br />Traditional Method<br />Time Cycle Module<br />Risk is an uncertainty<br />Risk cause is unknown<br />Risk cannot be measured at times due to data insufficiency of the unknown variables.<br />Risk effect is a balloon effect and often could <br />go out of control.<br />Risk is a certainty<br />Risk cause is the uncertainty that must be checklist monitored <br />Risk is a weekly deviation from the Terms of Reference or at times from the historical trend that is measured and controlled.<br />If the deviation is sharp and uncontrolled it will snowball to a crisis. See following Graph. Whenever such deviations occur it<br />must not be allowed to continue. <br />
  47. 47. Excerpts from the May 2008 report of Congressman Jim Saxton to the U.S. Congress on the Housing Bubble months before it became a Global Crisis.<br />The sharp rise in subprime mortgage loans and sharp fall in FHA <br />insured mortgages during the years 2003 to 2007 show that there<br />was no sudden rise in housing demand but a demand manipulation to cash in on the easy credit policy. Sharp deviation from normal historical trends indicate presence of high Risk as per TCM. <br />Category : Risk associated with credit . Class: Expected<br />Detailed Analysis : “ Finance Risk Case Study” Fa051 Series<br />
  48. 48. Time Cycle Module : Source references<br />The TCM Risk management module Ba01 is based on the Book “ Project Management Time Cycle : Time Cycle Module : Volume I<br /> From Concept to Feasibility.” <br /> ISBN 1440493332. <br />Published in Dec 2008 the Book suggests several new concepts to improve resource utilization in both the Business Process and Business solution. Since the concepts are new and challenging, they are here being explained step by step in slides, to make them more user friendly. We hope “TCM Step by Step” will make the Book a more client friendly offering for our valued<br />readers. We do not consider them dummies and look forward to interact with these offerings in days to come.<br />
  49. 49. Business Time cycle module Series<br /><ul><li> Business Risk Series : Ba01….
  50. 50. Business Risk Case Studies Series : Ba31....
  51. 51. Business data pruning and co-relation Series : Ba41…
  52. 52. Globalizing business operations Series : Ba51…..
  53. 53. Re-working business solution Series : Ba71 ….
  54. 54. Business Risk Case Study : Ba31
  55. 55. “Risk Measurement for the Product launch of an aerated soft drink” Scheduled release 6th July 2009</li></ul>Series on Financial risks : Fa01…Series<br />Series on Technology risks: Ta01…Series <br />Series on Career risks: Ca01…Series<br />
  56. 56. The Project Management Time Cycle – Vol. ITIME CYCLE MODULE: From concept to feasibilityISBN 1440493332available at AmazonEconomy to EcologyOur goal is to help promote clean, safe and better practices in economy and ecology worldwide. Balanced, efficient and a little more sustainable.Kindle BlogEcothrust ASIN: B0029ZAUAYFor any queries mail to sen.sandip@gmail.comOur heartfelt thanks to Google images, Wikipedia, and several other image groups without which this presentation would not be possible.<br />