Risk Management: Why, How and What Do You Need To Do?


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Risk management is about making an effort to have some control over your objectives and what you want to get done. Managing risks while answering the questions of why, how and what to do to manage risk, will make you focus on the big picture and risks that matter most to you and to the people around you.

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  • Let start talking about risk with the story of a presentation on SOH, 27 years ago for an architecture class.27 years ago, I was trained as an architect and I thought that I would be practicing architecture throughout my life.As it turn out, I am now known as a Risk Management and Insurance person.Why, How and What do we do to prepare ourselves for the future?
  • Let begin talking about risk from the time we grow up.Over the years, as I grow up, I made a lot of mistakes, regrets, disappointments and also happiness.
  • As we grow up, we want to do thing, we want to own things and we wan to be important in some ways and we want to lead a significant life, What do we know about the future?A baby born today, would retire in 2072.Would the past 50 years repeat. How do we educate our kids.Would the next 50 years requires new way of looking at things and doing thing
  • As we grow up, we have to go through the jungle of surprises. It is a big wild world out there.Some thing works out as we expected.Some unexpected things have also happen.
  • Some people says that Managing risk is about managing control over uncertainties.No risk no gain.Risk is not as simple as black or white as in toss of a coin.Some risk can be accepted, while some others can cause death, many deaths or bankruptcy of a person, company and even country.
  • Do you take chance or do you think about everything through?Risk is not as simple as black or white as in toss of a coin.Some risk can be accepted, while some others can cause death, many deaths or bankruptcy of a person, company and even country.
  • Risk management standards usually define risk as possibility of a future event which would negatively impact objectives.Risk manager seeks to be systematic and organizeUncertain event can be a loss or an opportunity.
  • Dictionary definition of risk is exposure to danger.The reality in business is that risk more than just the question of is it dangerous or not.
  • Since 2009, to unify many global standards based on AUS/NZ RM Standard.Focus on effect, uncertainty and objective.Focus on risk that matter most to you.
  • What is the big deal about understanding risk?
  • Men have been to the moon and back, but even the most ambitious project carried out by the most intelligent, smart and experience people, can be a success or a failure.- We do risk management because despite our optimism, planning and experience.Murphy law rules.You have seen, you have gone though it, and it is happening as we are here.
  • SOH is a UNESCO landmark in 2008 but Australian was not so proud of SOH in 1973.It cost AUS110m or more than AUS1b now, 14 times original budget.It was completed almost 10 years late.It was completed not according to the architect design plan.
  • In Malaysia several years ago, we experience an expensive lesson in risk of public money.It is a sensitive issue but accidents are common in private or public projects. Supermarket collapse, thing fall down from tall construction killing people, hospital operating room cannot be used, building are impossible to maintain economically.At the end, an engineer was charged in court although he is not the project engineer, the architect said he is not involved and it cost RM100m to make good.
  • - The world experienced financial crisis, stock market burst, property market collapse, developed country going bankrupt and many surprises.Some are prepared, some are surprise and some just accepted things as fate.
  • We have seen an apple becoming coming from out from almost bankruptcy to changing the world and becoming even bigger than many countries.We have seen big huge company becoming irrelevant.
  • Ig you are project manager, running a project, you would be familiar with the terms
  • Start with WhyAsk HowThen focus on What
  • The questions is designed to show:We can see better, when things are organizedWe remember the 1st but not 2nd.The first Moon landing mission was Apollo 11, during which—on July 20, 1969—Neil Armstrong and Buzz Aldrin became the first people to set foot on the Moon. Six missions landed in total, numbered Apollo 11–17, excludingApollo 13. Altogether twelve men walked on the Moon, the only humans to have been on an extraterrestrial body.
  • When you look at risk, 1st question you have to ask is: - Can the risk be prevented. - Is the likelihood is high and impact to business is low.
  • 2nd, Is it a strategic risk which you decided to take because of possibility of big profit.No risk, no gain thinking.
  • 3rd risk are called Black Swan event. Something which have 1 to 1,000,000 chance of occurrence but if it occurred, very severe. - Promoted by Nassim Nicholas Taleb, a stock market trader who does not own any stock, a university professor and a billionaire speculating in extremely profitable but unlikely event. - The idea of 1,000 years of experience proven false in one catastrophic event. - Lebonan war, Fukushima, September 11, World War, Internet stock market bubble and burst. - For a long time Warren Buffet refuse to invest in IT stocks.
  • - Following understanding of why we are pursuing a worthwhile objectives.We look into assessing risk which start with knowing the context, identifying risk within the context and analyzing likelihood together with impact.
  • - The we evaluate how much control we have over the risk, and prioritize first thing first.- We decide what to do.
  • Thirdly we need to take PDCA action to assert control over risk.We have a choice of ignoring. Sometime this strategy works. Things you ignore, sometimes come back to haunt you.
  • Finally Part 3 of managing risk is about being organize.RIsk management plan is typically a few pages of report which stated: a. What is the overview and objective of project, b. Who are the team members and what are their roles in the project. c. How are risks to be identified, analyze, evaluated, controlled and status updated. d. When does risks are to to be reviewed and reported. e. Signed off by project manager as written commitment.
  • We have a lot to learn from fire fighter.The spend years preparing to fight fire.Most of us, spend years fire fighting.The consequence of not paying attention to risk, would be fire fighting.You and I are probably familiar with the stress that come along with fire fighting.
  • At the end, risk management and managing risk is about helping ourselves, preparing ourselves to achieve what we are born in this world to do.
  • Risk Management: Why, How and What Do You Need To Do?

    1. 1. What is a risk?WHAT ARE RISKS?
    2. 2. PROBLEM
    3. 3. 1. WHY? 2. HOW? 3. WHATSOLUTION
    4. 4. Risk Management ComponentsCHALLENGES
    5. 5. Why?1. KNOW YOUR CONTEXT?
    6. 6. Pop Quiz 200719691112197220 07 1969 11 12 1972 What did Eugene "Geno" Cernan did on 11 December 1972Last man on the Moon on Apollo 17
    8. 8. 3. WHAT?PLAN, DO, SHARE
    9. 9. 1. Plan 2. Register 3. ReportSOLUTION
    10. 10. 1. Context 2. Identify 3. Analyze 4. Evaluate 5. Control 2. RISK REGISTER
    11. 11. Why, How & What Do You Want?IN CONCLUSION
    12. 12. Anwar Ahmad Abidin xanwara@twitter.com www.seeingrisk.com www.slideshare.net Google+ Linkedin Facebook slideshare.comThanks to Haiku Deck for iPad