Uploaded byBrian Hallinan
BSBRSK401A Identify risk and apply risk management processes vers 0.1.pptx
The document discusses risk management processes including identifying risks, analyzing risks, treating risks, and monitoring risk treatments. It provides examples of common organizational risks and methods for identifying, analyzing, and managing risks. Key steps include brainstorming potential risks, assessing likelihood and impact, prioritizing risks, establishing risk treatments, and regularly reviewing risks and treatments for effectiveness.
BSBRSK401A Identify risk and apply risk management processes vers 0.1.pptx
- 1. IDENTIFY RISK AND APPLYRISK MANAGEMENT PROCESSES h"p://www.flickr.com/photos/cswc/6552142213/
- 2. Unit Competencies BSBRSK401A Identify riskand apply risk management processes Identify risks Analyse and evaluate risks Treat risks Monitor and review effectiveness of risk treatment/s h"p://www.flickr.com/photos/sportrait/3393579769/
- 3. Learning Objectives At theconclusion of this module, you will be better able to: Identify risks in a diverse range of organisational activities Develop collaborative strategies to evaluate and mitigate risks Implement continuous improvement processes to deal more effectively with identification, analysis and mitigation strategies for organisational risks h"p-‐//www.flickr.com/photos/ter-‐burg/8127175006/ h"p://www.flickr.com/photos/leehaywood/4215672566/
- 4. It can bea Risky Business Sometimes h"p://www.flickr.com/photos/geoliv/11313734716/
- 5. RISK is the possibilityof events that may impact organisational objectives
- 6. h"p://www.flickr.com/photos/elvire-‐r/2451784799/ You cannotlive your life without risks
- 7. Some pay off– big time!!!! h"p://www.flickr.com/photos/geishaboy500/3994803605/
- 8. Whilst others –not so well!!!!! h"p://www.flickr.com/photos/darrenkw/7728088440/
- 9.
- 10. h"p://www.flickr.com/photos/foshydog/4780493128/ We areall Risk Managers
- 11. h"p://www.flickr.com/photos/ejazasi/253032421/ Sometimes weunderstand and accept risk
- 12. h"p://www.flickr.com/photos/dvids/2881216357/ At othertimes we take large precautions
- 13. Despite our efforts itremains impossible to ELIMINATE EVERY RISK
- 14. RISKS are everywhere Health andwellbeing Job security and payments Financial arrangements Relationships Natural disasters Rules and regulations Deliveries and traffic Disease and accidents Misadventure and crime Infrastructure failure ………………… ………………… …………………
- 15.
- 16. h"p://www.flickr.com/photos/12023825@N04/2898021822/ You needto look for risks
- 17. Look for risksto your STRATEGIC PLANS
- 18. Look for risksto your OPERATIONAL PLANS
- 19. Organisational risks generally relateto FINANCIAL OPERATIONAL & ENVIRONMENTAL External risks such as interest rates, commodity prices LEGAL Internal risks such as customer payments, cash flow, asset depreciation STRATEGIC PRIVACY & INFORMATION
- 20. Organisational risks generally relateto FINANCIAL OPERATIONAL & ENVIRONMENTAL LEGAL STRATEGIC PRIVACY & INFORMATION Risks such as illness, retirement, staff turnover, equipment breakdowns, systems failures, natural disasters
- 21. Organisational risks generally relateto FINANCIAL OPERATIONAL & ENVIRONMENTAL LEGAL STRATEGIC PRIVACY & INFORMATION Risks such contract disputes, non compliance with legal requirements (WHS standards, FairWork Aust, etc)
- 22. Organisational risks generally relateto FINANCIAL OPERATIONAL & ENVIRONMENTAL LEGAL STRATEGIC PRIVACY & INFORMATION Risks such as changes in customer demand, increased competition, new technologies and business development opportunities
- 23. Organisational risks generally relateto FINANCIAL OPERATIONAL & ENVIRONMENTAL LEGAL STRATEGIC PRIVACY & INFORMATION Risks such as noncompliance with state and national privacy laws on recording, storing and disposing of customer information
- 24.
- 25. review your businessplan and ask as many WHAT IF? questions as you can
- 26. Flow charting toremove gaps and overlaps h"p://www.flickr.com/photos/jpaxonreyes/6284836564/
- 27. Analyse a widerange of possible future events and their outcomes SCENARIO ANALYSIS economic, political, legislative and operating scenarios
- 28. h"p://www.flickr.com/photos/betobaibich/206960384/ Get outof the office and observe Ask questions and listen to people What are they thinking? YOUR TEAM CUSTOMERS SUPPLIERS COMPETITORS NETWORK
- 29. When, where, why,and how are risks likely to occur in this organisation? Are the risks internal, external or random? Who might be involved or affected if this occurs?
- 30. ISSUES ARE NOT RISKS …butfailing to address them may be VERY RISKY
- 31.
- 32. What is thelikelihood? What is the predicted outcome?
- 33. 1 VERY LIKELY 2 LIKELY 3 UNLIKELY 4 HIGHLY UNLIKELY (couldhappen frequently) (could happen, but not frequently) (could happen, but only rarely) (could happen, but probably never will)
- 34. 1 CATASTROPHIC 2 MAJOR 3 MODERATE 4 MINOR (may ruin theorganisation) (business plans may fail) (plans may need to be modified ) (can be absorbed - inconvenient)
- 35. 1 ENORMOUS 2 MAJOR 3 MODERATE 4 MINOR (may transform theorganisation) (may transform a department) (may exceed business planning) (swings and roundabouts)
- 36. Risk Number Very Likely (4) Likely (3) Unlikely (2) Very Unlikely (1) Catastrophic (4) High (16) High (12) Medium (8) Low (4) 11+ Urgent Remedy Major (3) High (12) Medium (9) Medium (6) Low (3) 6– 10 Needs Action Moderate (2) Medium (8) Medium (6) Low (4) Low (2) 1–5 No Action Minor (1) Low (4) Low (3) Low (2) Low (1)
- 37. h"p://www.flickr.com/photos/dtpancio/7443265772/ We allhave our own biases – but you must deal with the facts and remain objective
- 38. h"p://www.flickr.com/photos/bilfinger/8271241613/ Who needsto to be involved? Who needs to be consulted? Who needs to be informed?
- 39. What stakeholders needto be involved in assessing the risk Interest levels Subject matter expertise Those involved in the activity Those that may be impacted downstream Those that are upstream that may need to adjust
- 40. Your team Other departments Customers Suppliers Consultants Statutorybodies Industry groups
- 41. Consultative risk analysis Deliversfar more predictable outcomes
- 42. h"p://www.flickr.com/photos/eirikso/2217301198/ I hadn’tbeen paid for two years of work in starting Flickr, and we were running out of money. The only guy getting paid on a consistent basis was the guy with three kids. We mortgaged our house to put money back into the company. So it was both a personal and professional risk. It could have gone either way.
- 43. Less than sixmonths after mortgaging their home Caterina Fake and her husband Stewart Butterfield (Flickr co-founders) SOLD FOR $50M Happily – they were able to repay their mortgage
- 44. h"p-‐//www.flickr.com/photos/osde-‐info/5598738692/ Apple havesold more than 84 million in 3 years
- 45. h"p://www.flickr.com/photos/newtown_grafiO/4843514662/ Tablets havebecome a huge market People have often queued for hours Demand has, at times, outstripped supply
- 46. Many industry analystspredict tablets to “take over” from desktop and laptop computers Microsoft was so confident about the market sector that it developed the “Surface” tablet Risking significant damage to relationships with it’s traditional hardware partners
- 47. h"p://www.flickr.com/photos/13815526@N02/7796228354/ In July2013, Microsoft announced a $900M write-down for unsold stocks
- 48. h"p://www.flickr.com/photos/g_jewels/4465732486/ Historical informationcan provide great insights into “What might go wrong”
- 49.
- 50. Risk Number Very Likely (4) Likely (3) Unlikely (2) Very Unlikely (1) Catastrophic (4) High (16) High (12) Medium (8) Low (4) 11+ Urgent Remedy Major (3) High (12) Medium (9) Medium (6) Low (3) 6– 10 Needs Action Moderate (2) Medium (8) Medium (6) Low (4) Low (2) 1–5 No Action Minor (1) Low (4) Low (3) Low (2) Low (1)
- 51. Organisations take stepsto MANAGE RISKS that they assess as requiring attention
- 52. They establish CONTINGENCIES for instancesthat the risk may occur
- 53. They conduct regular AUDITS Toensure they are complying with proper standards
- 54. FINANCIAL RISK is oftenmanaged with insurances or guarantees many organisations look to assign to or share risk with others
- 55. WORKPLACE SAFETY has avery strong process following “Hierarchy of Controls”
- 56. Adopting processes and training& development to ensure team members are competent and informed
- 57. Governance processes toensure issues dealt with at the right level Procurement processes that include “rise and fall”, alternative suppliers enforceable terms and conditions Marketing resources keep connected with customer needs and trends Relationships that focus on innovations and technology Business systems that protect and back-up valuable data Disaster recovery plans
- 58. RISK REGISTERS are designedto maintain a list of all known risks and their respective treatments
- 59. CONTROL MEASURES are themeasures that need to be designed or established to validate the effectiveness of the treatment
- 60. h"p://www.flickr.com/photos/zengei/6957553864/ Hard measuresare the most reliable
- 61. h"p://www.flickr.com/photos/jansco"nelson/3364705313/ Soft measuresneed to be interpreted
- 62. h"p://www.flickr.com/photos/look_ma_im_flying_pictures/3714888958/ Without effectivemeasures How will you know what to look for? How things are progressing? When to make adjustments
- 63. We need toset measures for the COST OF RISK TREATMENTS and PREDICTED BENEFIT
- 64. In 2010, volcanicash from Iceland cost the airline industry $3.6b How could they have better managed the risk
- 65.
- 66. Are the risk treatmentsworking? are they having the desired effect? are there impacts that were not considered? are there adjustments that are required?
- 67. h"p://www.flickr.com/photos/cuckove/3307152002/ Things canchange VERY RAPIDLY
- 68.
- 69. h"p://www.flickr.com/photos/theaterculture/3789545290/ What impacts mayoccur? There may be downstream impacts that you didn’t consider THE BUTTERFLY EFFECT
- 70. Review all risksregularly Risks not considered to be serious enough to manage can become high priority when circumstances change
- 71. How are we trackingon the cost of the risk controls? Are the agreed controls providing the predicted result? Do we need to make adjustments?
- 72. h"p://www.flickr.com/photos/jugrote/2296138797/ WHEN THINGSARE NOT GOING AS PLANNED DON’T PANIC!!! STAY OBJECTIVE & WORK THROUGH THE PROBLEMS – DON’T MAKE THEM WORSE
- 73. Reviewing Effectiveness and LearningOutcomes h"p://www.flickr.com/photos/geoliv/11313734716/
- 74. DEAL WITH FACTUAL INFORMATIONFIRST Only when you have all the facts do you commence interpreting
- 75. Did we execute whatwe planned? What changed and why? What did the risk treatments cost? Did the treatment deliver the anticipated result? What were the unintended impacts?
- 76. Did we identifythe correct risks? Did we analyse them properly? Did we get the right stakeholders involved? Were the risk treatments appropriate? Did we manage the process effectively?
- 77.
- 78. What have welearned? What do we need to do differently next time?