1.
RISK
MANAGEMENT:
Managing
the Unavoidable

2.
A RISK
is anything that can hinder
or help an organization
achieve its objectives

3.
If it hinders,
it’s called a THREAT
If it helps, it’s called an
OPPORTUNITY

4.
What risks do
you see here?
LET’S SAY YOUR STARTUP CREATED
AN AD-SUPPORTED APP THAT LETS
THE USER SPOT THE NEAREST TOILET

5.
THE RISKS CAN BE:
CONSUMER PREFERENCE
Consumers may find the app useful or useless
COMPETITOR STRATEGY
Similar apps may or may not be updated with new features
HUMAN RESOURCES
Team may be seriously or just halfheartedly
committed to finishing the app

6.
THE INEVITABLE PRESENCE OF
THREATS AND OPPORTUNITIES
CALLS FOR RISK MANAGEMENT.
DON’T JUST TAKE RISKS,
LEARN HOW TO MANAGE THEM.

7.
HERE’S THE CYCLE TO REMEMBER
RISK CONTROLRISK ASSESSMENT

8.
RISK ASSESSMENT
IDENTIFY: Recognize potential risks to be faced
ANALYZE: Determine risk impacts on organization
PLAN: Establish risk control measures

9.
RISK CONTROL
Implement: Perform risk-controlling strategies
Monitor: Check risk status and execution of
planned actions
Improve: Enhance processes for better
performance

10.
RISK MANAGEMENT
OFTEN COMES WITH A MATRIX BASED ON
TWO CRITERIA:
Source: BrightHubPM
LIKELIHOOD OF OCCURRENCE : Probability of a risk
CONSEQUENCES : Extent of damage caused

11.
LIKELIHOOD OF OCCURRENCE
DEFINITE : Most likely to cause a problem
LIKELY : 60-80% chance of occurrence
OCCASIONAL : 50/50 probability of occurrence
SELDOM : Low probability of occurrence, but can’t be completely disregarded
UNLIKELY : Less than 10% chance of occurrence

12.
CONSEQUENCES
Insignificant : Damage is negligible
Catastrophic
Marginal
Moderate
Critical
: Damage can halt productivity
: Damage is not significantly serious
: Damage is significant but not severe
: Damage can lead to serious loss

13.
EACH RISK WILL FALL UNDER
ONE OF THESE CATEGORIES
Should be
addressed on a
high-priority basis
Could be addressed to
improve overall performance,
but may be ignored without
damage
LOW MEDIUM HIGH EXTREME

14.
WHAT A RISK MATRIX LOOKS LIKE
For more on risk and how to use the risk matrix, visit BrightHubPM
Definite
Likely
Occasional
Seldom
Unlikely
Insignificant Marginal Moderate Critical Catastrophic
Likelihood
Consequences
High High Extreme Extreme Extreme
Moderate High High Extreme Extreme
Low Moderate High Extreme Extreme
Low Low Moderate High Extreme
Low Low Moderate High High

15.
“Risk is like fire: if controlled it will help you;
if uncontrolled it will rise up and destroy you.”
Theodore Roosevelt

16.
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