In this presentation, we learn the methods and ways to deal with risk.

1. DEALING WITH
RISK
Furqan Javeed Syed
PES1PG21MB405
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2. What is
Risk?
In every business from the
small store to large
manufacturer there are
common challenges with
• Insurance Claims
• Risk of fire damage to building
• Accidents
• Losses due to defective products
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3. In general, a sense of risk in its
different forms can help investors to
better figure out:
• Opportunities.
• Trade-offs.
• Costs associated with different
investments.
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4. In Financial
World Risk is
Dealt by:
Identify Identify the Risk.
Evaluate or Analyze
Evaluate or Analyze the
Risk.
Prioritize Prioritize the Risk.
Treat Treat the Risk.
Monitor Monitor the Risk.
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5. IDENTIFY THE RISK
The first step of dealing with risk is to identify the
risks that the business will have to face in the
region.
There are many types of risk:
• Legal Risk
• Environmental Risk
• Market Risk
• Regulatory Risk
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6. Analyze the
Risk
Once the risk has been identified:
• Potential problems are known
• How likely are the risk to place?
• If they take place, what will be the
consequences be?
As a result:
• Where should they focus?
• Financial Loss
• Time Loss
• Severity of impact
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7. Prioritize the Risk:
• Helps pinpoint where the
team should focus.
• Helps identify useful solutions
for each risk.
• Projects can run efficiently.
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8. Treat the Risk
• Every risk can’t be expected.
• Previous steps should be taken anyways to
deal with risk.
• Starting with highest priority first team should
focus on either solving or at least reducing
the risk.
• Effectively treating and modifying the risk
also means using your team’s resources
properly without hampering the project.
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9. Monitor
the Risk
Risk need to continuously
monitored so to check if risk
mitigation plans are working.
To be aware if a threat
becomes a greater threat.
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10. Approaches
to Deal
with Risk
After the company's exact risks are found and the risk
management process has been applied there are several
strategies companies can take to treating different risk
Risk Avoidance
Risk Reduction
Risk Sharing
Risk Retention
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11. Risk Avoidance
• It involves stopping and
avoiding any activities that
could lead to a risk.
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12. Risk Reduction
It is focused on actions that
will reduce the probability of
a risk occurring or the
impact of a risk.
This is done by adjusting
aspects of an overall project
plan or organizational
process or by scaling down.
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13. Risk Sharing
It is when an organization will transfer or share part of the risk with
another organization.
Example: is outsourcing manufacturing or customer service
functions to a third party.
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14. Risk Retention
It occurs when risks have been evaluated.
The organization decides to accept the
potential risk.
No action is taken to decrease the risk.
But a contingency plan may still be put in
place.
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15. THANK YOU
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