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Everything you need to know about Risk Management

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Who is a Risk Manager? what skills does he require? This document resumes all you need to know about risk management

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Everything you need to know about Risk Management

  1. 1. Risk Management Everything you need to know about risk management!
  2. 2. The Risk Manager
  3. 3. The Risk Manager …identifies potential risks that may affect the organization.
  4. 4. Performing effectively as a risk manager you have to be comfortable taking up a central position, interacting with members of other teams within the company and with customers. Source: Keys to becoming a good risk manager
  5. 5. Once risks have been identified and assessed, risk managers work to implement procedures to overcome, transfer, or at least minimize them. Performing effectively as a risk manager you have to be comfortable taking up a central position, interacting with members of other teams within the company and with customers. Source: Keys to becoming a good risk manager
  6. 6. What are the main sources of risk?
  7. 7. What are the main sources of risk? Scope Planning Resource Technological Source: What are the main risks in project management
  8. 8. What are the main sources of risk? Scope Planning Resource Technological Source: What are the main risks in project management
  9. 9. What are the main sources of risk? Scope Planning Resource Technological Source: What are the main risks in project management
  10. 10. What are the main sources of risk? Scope Planning Resource Technological Source: What are the main risks in project management
  11. 11. PMBOK’s 6 steps to controlling risk
  12. 12. Planning Like any other aspect of project management, risk prevention and response in the case of risk occurrence should be subject to strict planning. Risk management is iterative, implying that the planning phase will be reviewed after each cycle. Source: 6 steps to control risk
  13. 13. Identification It is essential to identify all risks that may potentially influence the project so that the necessary precautions can be taken and disaster can be avoided. Tools can be used to identify risks, such as: The Ishikawa diagram SWOT analysis Expert judgement Source: 6 steps to control risk
  14. 14. Identification It is essential to identify all risks that may potentially influence the project so that the necessary precautions can be taken and disaster can be avoided. Tools can be used to identify risks, such as: The Ishikawa diagram SWOT analysis Expert judgement Source: 6 steps to control risk
  15. 15. Identification It is essential to identify all risks that may potentially influence the project so that the necessary precautions can be taken and disaster can be avoided. Tools can be used to identify risks, such as: The Ishikawa diagram SWOT analysis Expert judgement Source: 6 steps to control risk
  16. 16. Identification The Risk Manager is the facilitator of risks. Project management professionals identify the risks, and go to the risk manager who has the tools to manage and nullify these risks. Source: 6 steps to control risk
  17. 17. The qualitative analysis are used initially to filter risks and prioritize them in order of importance/severity. A useful tool is the free online risk assessment matrix with which you can analyse, customize and share risk sets in an easy to use, highly graphical way. Qualitative Analysis Source: 6 steps to control risk Click here to have a look
  18. 18. Quantitative Analysis This is a more comprehensive analysis, but also more complex and time consuming. To perform a quantitative analysis, specific quantitative risk analysis systems should be used, such as mathematical simulations: Monte Carlo Decision tree Bow tie analysis Source: The Monte Carlo method in Project Management
  19. 19. Quantitative Analysis This is a more comprehensive analysis, but also more complex and time consuming. To perform a quantitative analysis, specific quantitative risk analysis systems should be used, such as mathematical simulations: Monte Carlo Decision tree Bow tie analysis Source: 6 steps to control risk
  20. 20. Quantitative Analysis This is a more comprehensive analysis, but also more complex and time consuming. To perform a quantitative analysis, specific quantitative risk analysis systems should be used, such as mathematical simulations: Monte Carlo Decision tree Bow tie analysis Source: 6 steps to control risk
  21. 21. Response planning Developing a pre-planned approach to transfer or mitigate risks upon identification. Risk verification Pre-planned procedure Transfer, mitigate or avoid Contingency plan for risks beyond control/scope Source: 6 steps to control risk
  22. 22. Response planning Developing a pre-planned approach to transfer or mitigate risks upon identification. Risk verification Pre-planned procedure Transfer, mitigate or avoid Contingency plan for risks beyond control/scope Source: 6 steps to control risk
  23. 23. Response planning Developing a pre-planned approach to transfer or mitigate risks upon identification. Risk verification Pre-planned procedure Transfer, mitigate or avoid Contingency plan for risks beyond control/scope Source: 6 steps to control risk
  24. 24. Response planning Developing a pre-planned approach to transfer or mitigate risks upon identification. Risk verification Pre-planned procedure Transfer, mitigate or avoid Contingency plan for risks beyond control/scope Source: 6 steps to control risk
  25. 25. Monitoring • Frequently review risks. • Document any changes in risk status. • Identify the warning signs. The risk log will be essential for monitoring and improving the detection of risk, because any past risks will have been documented Source: 6 steps to control risk
  26. 26. Training and Certification
  27. 27. Training and certification If you want to become a risk manager, you will have to combine two types of training. On the one hand, you must be a specialist in a particular field. Source: How to become a risk manager – certificates and training
  28. 28. Training and certification If you want to become a risk manager, you will have to combine two types of training. On the one hand, you must be a specialist in a particular field. For example, if you want to be a risk manager in the field of medicine or pharmaceuticals, you’ll need medical training, or hospital management training. Source: How to become a risk manager – certificates and training
  29. 29. Training and certification If you want to become a risk manager, you will have to combine two types of training. On the one hand, you must be a specialist in a particular field. On the other hand, you need to acquire specialist training in risk management. Several institutions offer specific degrees in these areas. For example, if you want to be a risk manager in the field of medicine or pharmaceuticals, you’ll need medical training, or hospital management training. Source: How to become a risk manager – certificates and training
  30. 30. PHD programs Columbia University’s Decision, risk and operations University of Pennsylvania’s insurance and risk management Source: How to become a risk manager – certificates and training
  31. 31. Higher education certificates A host of Higher Education Institutions in the US offer Risk Management courses, i.e. Stanford’s strategic decision and risk management courses. Source: How to become a risk manager – certificates and training
  32. 32. Corporate certifications If you’re interested in in-company training tailored to the needs of your organization and in implementing international standards like ISO 31000:2009, you can look up: • BSI’s risk management training courses • ASQs’ risk management essentials and implementation strategies Source: How to become a risk manager – certificates and training
  33. 33. Prominent institutions in UK and US UK • Institute of Risk Management • The Chartered Insurance Institute US • Project Management Institute • International Risk Management Institute Source: How to become a risk manager – certificates and training
  34. 34. ISO Standards of Risk Management
  35. 35. ISO Standards of Risk Management The ISO Standards have published over 21000 international standards and related documents covering almost every industry. ISO Standards for businesses are strategic tools that reduce costs by minimizing waste and errors, and increasing productivity.
  36. 36. ISO 31000 – Risk Management The ISO 31000 is the general code for all standards on risk management. These standards, provide organizations with the necessary guidance to ensure that risks are managed effectively and the business can perform efficiently.
  37. 37. ISO 31000:2009 Presents a framework, provides principles and gives a process for risk management.
  38. 38. IEC 31010:2009 A supporting standard for the ISO 31000 Risk Management, which gives advice and assistance on choosing the most appropriate techniques and tools for managing risk in your organization.
  39. 39. Get the latest ITM Platform news and articles directly from: itmplatform.com/en/blog/ Follow us on social media for more updates …or visit our website at: itmplatform.com/en
  40. 40. Click here if you want to learn more! • Risk Assessment Matrix • Keys to becoming a good risk manager • How to become a risk manager – certificates and training • New free online risk assessment matrix • What are the main risks in project management • 6 steps to control risk

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