Risk video

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Risk video

  1. 1. Video on Managing Risk
  2. 2. Questions on Video <ul><li>2 types of risk ? </li></ul><ul><li>2 types of loss? </li></ul><ul><li>4 approaches to risk? </li></ul><ul><li>Examples? </li></ul>
  3. 3. Types of Risk <ul><li>Speculative </li></ul><ul><ul><li>Gain/loss </li></ul></ul><ul><ul><li>For business decisions – invest or not </li></ul></ul><ul><li>Pure </li></ul><ul><ul><li>Only a loss </li></ul></ul><ul><ul><li>E.g. fire, collapse of a tent </li></ul></ul><ul><ul><li>Can be reduced by management action </li></ul></ul>Information Technology Project Management, Fifth Edition, Copyright 2007
  4. 4. Types of Loss <ul><li>Direct </li></ul><ul><ul><li>E.g. Key employee dying </li></ul></ul><ul><li>Indirect </li></ul><ul><ul><li>Can be 4 times the size the direct effect </li></ul></ul><ul><ul><li>E.g. shutdown the business, hire new employees </li></ul></ul>Information Technology Project Management, Fifth Edition, Copyright 2007
  5. 5. 4 Approaches to Risks <ul><li>Avoid </li></ul><ul><ul><li>Stop producing an aircraft </li></ul></ul><ul><ul><li>Eliminate fireworks </li></ul></ul><ul><li>Reduction </li></ul><ul><ul><li>Sprinkler systems </li></ul></ul><ul><ul><li>Quality checks </li></ul></ul><ul><ul><li>Risk assessments </li></ul></ul><ul><ul><li>Safety nets beneath high-wire acts </li></ul></ul>Information Technology Project Management, Fifth Edition, Copyright 2007
  6. 6. 4 Approaches to Risks (Cont’d) <ul><li>Assumption </li></ul><ul><ul><li>Can be on purpose/by accident </li></ul></ul><ul><ul><li>If by accident, can be devastating, e.g. asbestos </li></ul></ul><ul><ul><li>Planned risk retention by management reserve </li></ul></ul><ul><ul><li>Establish a veteran fund for retired performers </li></ul></ul><ul><li>Transfer </li></ul><ul><ul><li>Contractual obligations </li></ul></ul><ul><ul><li>Purchase insurance to cover key performers </li></ul></ul>Information Technology Project Management, Fifth Edition, Copyright 2007

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