This document discusses operational risk management (ORM) for flight safety courses. It provides an overview of ORM, defines key ORM concepts like risk and hazard, and outlines the six-step ORM process of identifying hazards, assessing risks, analyzing risk control measures, making control decisions, implementing controls, and supervising and reviewing the process. The goal of ORM is to protect personnel and resources while maximizing capabilities and mission effectiveness.
This document provides an agenda and presentation materials for a workshop on strategic risk management. The workshop is organized by MakeITWork Consulting ME and will take place in Ramallah, Palestine. The agenda covers topics such as defining risk, the importance of risk management, enterprise risk management as a factor for organizational success, developing a simple strategy and framework for ERM, and benefits of Basel III recommendations for risk management practices. One session introduces the speaker, Dr. Jorge Vaz Girão, who has over 30 years of experience in program, project, and risk management.
Risk Management Process And Procedures PowerPoint Presentation SlidesSlideTeam
The document outlines the risk management process and procedures for a company. It introduces risk management and identifies types of risk categories. It then describes the procedure for managing risks, which includes risk planning, identification, assessment, monitoring and tracking. Tools and practices for risk analysis are also covered, along with engaging stakeholders. The document closes with an overview of the risk management lifecycle.
Risk Management Plan In Business PowerPoint Presentation Slides SlideTeam
There might be inherent risk that cannot be avoided and thus a Risk Management Plan in Business PowerPoint Presentation Slides becomes lifeline in such cases. The data compiled and saved in PPT layout not only helps to minimize or eliminate the risk associated but also helps to deal with it effectively at the time of its occurrence. To foresee any risk, a risk assessment matrix is a must and the same is supplied from our end in a structured and professional manner in the presentation template. Line and flow charts in PPT template acts as the oxygen to eliminate risks like strategic, compliance, financial, operational and reputational hazards. The core risk management steps have been addressed carefully in the presentation slide which includes identification, analyzing, evaluation, ranking, monitoring and reviewing of the same. As far as business risk is concerned, a lot of factors come to play like sales volume, input cost and much more, thus every slide in PPT presentation pays special attention to the same. Our Risk Management Plan In Business PowerPoint Presentation Slides ensure thoughts appear extremely balanced. You will display great composure.
This document discusses operational risk and key risk indicators (KRIs). It defines operational risk and provides examples of operational risk losses from past incidents. It explains that KRIs are metrics that provide information on an organization's current exposure level to a given operational risk. The document outlines the process for identifying KRIs, which involves risk and control self-assessments to identify inherent risks, controls, and residual risks and prioritize them. It also discusses setting thresholds for KRIs, collecting and reporting KRI data, and the roles involved in managing the KRI process. Examples of potential KRIs are provided for credit risk, financial markets activities, and other operational risks.
The document provides an overview of an operational risk course. The course objectives are to introduce key aspects of operational risk, including definitions, importance of control and quantification, and regulatory frameworks. It outlines course modules that will cover topics such as risk identification, measurement, management tools, and case studies. It also summarizes perspectives on operational risk from industry practitioners, including approaches to improving financial performance and creating a "no surprise" environment through better risk management.
The document provides an overview of a risk appetite webcast held by Towers Perrin and PartnerRe on July 14, 2009. It includes biographies of the speakers, discussion topics to be covered such as defining risk appetite and PartnerRe's approach, and an illustrative case study on how a board of directors and management can work together to set risk appetite and limits. The goal is to help organizations better articulate their risk tolerance both qualitatively and quantitatively.
Risk management involves identifying potential risks to a project, analyzing their likelihood and impact, and developing plans to mitigate negative risks. Some key risks include staff turnover, requirements changes, and underestimating the time or resources needed. It is important to identify risks early, communicate about them, assign ownership, prioritize risks, and regularly monitor risks and mitigation strategies. Effective risk management can help promote the success of software projects by focusing resources and preventing potential problems.
This document provides an overview of risk management. It discusses the role of employees in risk management as the "first line of defense" and "eyes and ears" of the organization. It describes unusual occurrences and critical incidents as methods to capture risks, with the goal of reporting and learning. The risk management framework involves risk assessment, profiling organizational risks, and mitigating risks. Effective risk management is a shared responsibility requiring engagement from all levels of an organization through communication in a risk network.
This document provides an agenda and presentation materials for a workshop on strategic risk management. The workshop is organized by MakeITWork Consulting ME and will take place in Ramallah, Palestine. The agenda covers topics such as defining risk, the importance of risk management, enterprise risk management as a factor for organizational success, developing a simple strategy and framework for ERM, and benefits of Basel III recommendations for risk management practices. One session introduces the speaker, Dr. Jorge Vaz Girão, who has over 30 years of experience in program, project, and risk management.
Risk Management Process And Procedures PowerPoint Presentation SlidesSlideTeam
The document outlines the risk management process and procedures for a company. It introduces risk management and identifies types of risk categories. It then describes the procedure for managing risks, which includes risk planning, identification, assessment, monitoring and tracking. Tools and practices for risk analysis are also covered, along with engaging stakeholders. The document closes with an overview of the risk management lifecycle.
Risk Management Plan In Business PowerPoint Presentation Slides SlideTeam
There might be inherent risk that cannot be avoided and thus a Risk Management Plan in Business PowerPoint Presentation Slides becomes lifeline in such cases. The data compiled and saved in PPT layout not only helps to minimize or eliminate the risk associated but also helps to deal with it effectively at the time of its occurrence. To foresee any risk, a risk assessment matrix is a must and the same is supplied from our end in a structured and professional manner in the presentation template. Line and flow charts in PPT template acts as the oxygen to eliminate risks like strategic, compliance, financial, operational and reputational hazards. The core risk management steps have been addressed carefully in the presentation slide which includes identification, analyzing, evaluation, ranking, monitoring and reviewing of the same. As far as business risk is concerned, a lot of factors come to play like sales volume, input cost and much more, thus every slide in PPT presentation pays special attention to the same. Our Risk Management Plan In Business PowerPoint Presentation Slides ensure thoughts appear extremely balanced. You will display great composure.
This document discusses operational risk and key risk indicators (KRIs). It defines operational risk and provides examples of operational risk losses from past incidents. It explains that KRIs are metrics that provide information on an organization's current exposure level to a given operational risk. The document outlines the process for identifying KRIs, which involves risk and control self-assessments to identify inherent risks, controls, and residual risks and prioritize them. It also discusses setting thresholds for KRIs, collecting and reporting KRI data, and the roles involved in managing the KRI process. Examples of potential KRIs are provided for credit risk, financial markets activities, and other operational risks.
The document provides an overview of an operational risk course. The course objectives are to introduce key aspects of operational risk, including definitions, importance of control and quantification, and regulatory frameworks. It outlines course modules that will cover topics such as risk identification, measurement, management tools, and case studies. It also summarizes perspectives on operational risk from industry practitioners, including approaches to improving financial performance and creating a "no surprise" environment through better risk management.
The document provides an overview of a risk appetite webcast held by Towers Perrin and PartnerRe on July 14, 2009. It includes biographies of the speakers, discussion topics to be covered such as defining risk appetite and PartnerRe's approach, and an illustrative case study on how a board of directors and management can work together to set risk appetite and limits. The goal is to help organizations better articulate their risk tolerance both qualitatively and quantitatively.
Risk management involves identifying potential risks to a project, analyzing their likelihood and impact, and developing plans to mitigate negative risks. Some key risks include staff turnover, requirements changes, and underestimating the time or resources needed. It is important to identify risks early, communicate about them, assign ownership, prioritize risks, and regularly monitor risks and mitigation strategies. Effective risk management can help promote the success of software projects by focusing resources and preventing potential problems.
This document provides an overview of risk management. It discusses the role of employees in risk management as the "first line of defense" and "eyes and ears" of the organization. It describes unusual occurrences and critical incidents as methods to capture risks, with the goal of reporting and learning. The risk management framework involves risk assessment, profiling organizational risks, and mitigating risks. Effective risk management is a shared responsibility requiring engagement from all levels of an organization through communication in a risk network.
The document discusses project risk management and outlines six processes for managing risk: risk management planning, risk identification, qualitative risk analysis, quantitative risk analysis, risk response planning, and risk monitoring and control. It provides details on tools and techniques used in each process, such as documentation reviews, information gathering, probability and impact matrices, and quantitative risk analysis modeling. The overall goal of risk management is to increase the probability of positive events and decrease the probability of negative events on a project.
This document discusses operational risk and provides details on its definition, measurement, and management. It defines operational risk as losses resulting from inadequate or failed internal processes, people, and systems or from external events. It describes the Basic Indicator Approach, Standardized Approach, and Advanced Measurement Approach for calculating operational risk capital charges under Basel II. It also outlines the data elements, risk categories, and tools used to measure and manage operational risk.
Key Risk Indicator Example in Business Process Outsourcing for BankingLewis Adams
This document provides an example of a key risk indicator (KRI) table for vendor risk. The table lists three KRIs - in-house volume, outsourced domestic volume, and outsourced offshore volume. It shows the KRI threshold, current rating, and percentage variance between the rating and threshold for each KRI.
Governance, Risk, and Compliance ServicesCapgemini
Capgemini’s integrated and centralized approach to Governance, Risk, and Compliance (GRC) breaks through traditional functional silos to deliver effective enterprise risk management and compliance as a continuous process. We help organizations manage a range of enterprise risks in the areas of IT, finance and accounting, operations, and regulatory compliance with flexible solutions comprised of a highly qualified CPA and CISA talent pool, innovative tools, and our unique collection of GPM best practice processes and controls.
The document describes the ISO 31000 risk management process. It includes establishing the context, risk identification, risk analysis, risk evaluation, risk treatment, communication and consultation, and monitoring and review. Various risk assessment tools are also listed for each step of the process, such as risk matrices for analysis and evaluation, and hierarchy of controls for risk treatment.
Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of thirty one slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Risk Identification Powerpoint Presentation Slides complete deck.
Aligning strategy decisions with risk appetite
Presented by David Shearer
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Cheshire
Operational risk can arise from inadequate or failed internal processes, people and systems or from external events. It can be measured using a top-down approach such as the Basic Indicator Approach which calculates capital as 15% of average gross income, or the Standardized Approach which divides activities into business lines each with a factor. A bottom-up approach uses internal loss data but has challenges around position equivalence, completeness, and context dependence. Key risk indicators can also be used to signal potential operational losses.
operations risk management power point presentation.Miyelani Shibambo
Operational risk can result in losses from internal failures or external events. It is classified based on frequency and impact of events. Management typically focuses on low frequency/high impact events and high frequency/low impact events. The Basel Accords define three approaches to operational risk capital requirements: Basic Indicator, Standardized, and Advanced Measurement. The Standardized Approach divides business activities into eight lines and assigns a beta multiplier to each line's gross income. The Advanced Measurement Approach uses banks' internal models to calculate regulatory capital.
This document provides an overview of risk and issue management best practices. It discusses key concepts like the differences between risks and issues, how to prioritize them, and the overall process of identifying, analyzing, taking action, monitoring, reviewing, and reporting on risks and issues over the lifecycle of a project. The goal is to familiarize workshop participants with a standardized terminology and approach to proactively manage risks and issues in order to minimize potential impacts on a project.
Implementation of Enterprise Risk Management with ISO 31000 Risk Management S...PECB
The webinar covers:
• The start of any Enterprise Risk Management Program
• The approach to developing a framework that will assist organizations to integrate RM into their enterprise-wide risk management systems
• The relationship between the foundations of the risk management framework and their objectives
Presenter:
This webinar was presented by M. Youssef K, an executive consultant & trainer with several qualifications. He is an accomplished expert with over 10 years’ experience in the field of risk management, project and program management, PRINCE 2, Agile, EVM, business process analysis and design, as well as operational and organizational excellence.
Link of the recorded session published on YouTube: https://youtu.be/9fO-JqENL0I
Riskpro is an operational risk management consulting firm with offices in Mumbai, Delhi, and Bangalore. It aims to provide integrated risk management solutions to mid-large sized companies in India. Riskpro's team has over 200 years of cumulative experience in risk management. It offers a variety of services including Basel II/III advisory, operational risk consulting, risk training, and recruitment of risk professionals.
The document discusses risk management frameworks and processes. It provides:
1) An overview of risk management, including highlighting risks at the project, program, and portfolio levels.
2) A risk management framework involving establishing context, risk identification, analysis, evaluation, and treatment.
3) Details of risk governance, including risk management plans, risk registers, governance documents, and ongoing and discrete risk activities.
A practical approach to defining indicators within an integrated ERM Framework
Workshop Overview
Many organisations have made considerable progress in the area of enterprise and operational risk management since the financial crisis in 2007/2008. However events over the last few years have demonstrated, and continue to demonstrate the need to make improvements in organisational risk management capabilities and tools.
One area of weakness and, particular challenge for many organisations is around indictors, specifically developing and managing with Key Risk indicators (KRIs). KRIs have a vital role to play in monitoring and managing risk exposure within any organisation, and should be developed and deployed in the context of a wider indicator suite which includes Key Performance Indicators (KPIs) and Key Control Indicators (KCIs).
Workshop Objective
This interactive workshop provided attendees with a deep understanding of developing and managing with Key Risk Indicators. We started by providing an overarching management framework which integrated strategy execution and risk management. We then moved on to clarify the role of KRIs, alongside KPIs and KCIs.
Using a combination of presentations and practical examples, we were able to:
Learn how to define robust suite of indicators, including the different between Leading and Lagging, and Financial and Non-Financial indicators
Understand how to use a well-structured risk definition to guide the definition of KRIs
Understand the relationship between risk appetite and KRIs, and however Risk Appetite should influence the definition of KRIs
Understand the role KRIs play in scenario analysis
Understand the role of KRIs in the risk assessment process
Understand the role of KRIs within the risk, regulatory and management reporting
Who Attended:
CROs, Directors, General Managers, Senior Management and Managers of: Operations, Operational Risk Management, Enterprise Risk Management, Internal Audit, Compliance, Operational Risk, Strategy and Performance.
Please contact andrew.smart@stratexsystems.com for more details about the presentation or to have a talk about our software solutions.
This document discusses different types of risk indicators. Operational risk indicators provide information on an organization's exposure to operational risks. Environmental risk indicators include trading volume, volatility in foreign exchange markets, exchange rate volatility, and interest rate volatility. Financial risk indicators measure deal volatility, dealing profit, and activity-based costing variances. Industrial risk indicators track metrics like the number of defective items produced and maintenance issues for production lines.
Operation Risk Management in Banking SectorSanjay Kumbhar
This presentation discusses operational risk management in the banking sector. It covers topics such as categories of operational risk, risk identification and analysis techniques, key risk indicators, and risk mitigation strategies. The presentation is delivered by five students and contains several sections that outline the flow of topics to be presented.
The document discusses establishing key risk indicators (KRIs) for information technology (IT). It explains that KRIs differ from key performance indicators (KPIs) in that KRIs serve as early warning signs of increased risk exposure, while KPIs provide an overview of past performance. Selecting the right KRIs for an IT organization involves understanding organizational objectives and risks that could impact achieving those objectives. Linking objectives, strategies, and KRIs allows an organization to proactively manage strategic risks and help ensure objectives are met. IT risks in particular need to be monitored through KRIs due to IT's role in enabling business strategies and operations.
Operational risk management and measurementRahmat Mulyana
a short description in mixed English and Bahasa Indonesia on Operational Risk Management and Measurement, in particular value at risk calculation using Monte carlo Simulation. Another method using EVT (Extree Value Theory) will be delivered shortly. regards
This document outlines the objectives and key components of risk assessment and management. It defines risk management as minimizing adverse risks to an organization. The main stages are identifying hazards, evaluating associated risks, and controlling risks. Quantitative and qualitative risk assessment methods are described. Various risk assessment techniques like failure mode and effects analysis, hazard and operability studies, and fault tree analysis are explained. The document provides a process for practical risk assessment involving classifying work activities, identifying hazards, determining risk levels, deciding if risks are tolerable, and preparing risk control plans. It emphasizes that risk assessment is an ongoing and evolving process.
The document discusses operational risk and provides guidance on defining, identifying, measuring, monitoring, controlling, and mitigating operational risk according to the Basel Committee on Banking Supervision. It addresses issues with operational risk loss data and outlines principles for developing an appropriate operational risk management environment, process, and framework. The document also examines challenges with using internal and external loss data for quantifying operational risk capital requirements.
The document discusses traditional and modern approaches to operational risk management (ORM). Under the traditional approach, risk is defined as the probability of a loss occurring, while the modern approach defines risk as a measure of exposure to loss at a level of uncertainty. The modern ORM framework uses a multidimensional approach that incorporates cost-benefit analysis to optimize risk-reward, risk controls, and risk transfer. It also uses a taxonomy to classify operational failures according to contributory factors, events, and consequences.
The document discusses project risk management and outlines six processes for managing risk: risk management planning, risk identification, qualitative risk analysis, quantitative risk analysis, risk response planning, and risk monitoring and control. It provides details on tools and techniques used in each process, such as documentation reviews, information gathering, probability and impact matrices, and quantitative risk analysis modeling. The overall goal of risk management is to increase the probability of positive events and decrease the probability of negative events on a project.
This document discusses operational risk and provides details on its definition, measurement, and management. It defines operational risk as losses resulting from inadequate or failed internal processes, people, and systems or from external events. It describes the Basic Indicator Approach, Standardized Approach, and Advanced Measurement Approach for calculating operational risk capital charges under Basel II. It also outlines the data elements, risk categories, and tools used to measure and manage operational risk.
Key Risk Indicator Example in Business Process Outsourcing for BankingLewis Adams
This document provides an example of a key risk indicator (KRI) table for vendor risk. The table lists three KRIs - in-house volume, outsourced domestic volume, and outsourced offshore volume. It shows the KRI threshold, current rating, and percentage variance between the rating and threshold for each KRI.
Governance, Risk, and Compliance ServicesCapgemini
Capgemini’s integrated and centralized approach to Governance, Risk, and Compliance (GRC) breaks through traditional functional silos to deliver effective enterprise risk management and compliance as a continuous process. We help organizations manage a range of enterprise risks in the areas of IT, finance and accounting, operations, and regulatory compliance with flexible solutions comprised of a highly qualified CPA and CISA talent pool, innovative tools, and our unique collection of GPM best practice processes and controls.
The document describes the ISO 31000 risk management process. It includes establishing the context, risk identification, risk analysis, risk evaluation, risk treatment, communication and consultation, and monitoring and review. Various risk assessment tools are also listed for each step of the process, such as risk matrices for analysis and evaluation, and hierarchy of controls for risk treatment.
Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of thirty one slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Risk Identification Powerpoint Presentation Slides complete deck.
Aligning strategy decisions with risk appetite
Presented by David Shearer
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Cheshire
Operational risk can arise from inadequate or failed internal processes, people and systems or from external events. It can be measured using a top-down approach such as the Basic Indicator Approach which calculates capital as 15% of average gross income, or the Standardized Approach which divides activities into business lines each with a factor. A bottom-up approach uses internal loss data but has challenges around position equivalence, completeness, and context dependence. Key risk indicators can also be used to signal potential operational losses.
operations risk management power point presentation.Miyelani Shibambo
Operational risk can result in losses from internal failures or external events. It is classified based on frequency and impact of events. Management typically focuses on low frequency/high impact events and high frequency/low impact events. The Basel Accords define three approaches to operational risk capital requirements: Basic Indicator, Standardized, and Advanced Measurement. The Standardized Approach divides business activities into eight lines and assigns a beta multiplier to each line's gross income. The Advanced Measurement Approach uses banks' internal models to calculate regulatory capital.
This document provides an overview of risk and issue management best practices. It discusses key concepts like the differences between risks and issues, how to prioritize them, and the overall process of identifying, analyzing, taking action, monitoring, reviewing, and reporting on risks and issues over the lifecycle of a project. The goal is to familiarize workshop participants with a standardized terminology and approach to proactively manage risks and issues in order to minimize potential impacts on a project.
Implementation of Enterprise Risk Management with ISO 31000 Risk Management S...PECB
The webinar covers:
• The start of any Enterprise Risk Management Program
• The approach to developing a framework that will assist organizations to integrate RM into their enterprise-wide risk management systems
• The relationship between the foundations of the risk management framework and their objectives
Presenter:
This webinar was presented by M. Youssef K, an executive consultant & trainer with several qualifications. He is an accomplished expert with over 10 years’ experience in the field of risk management, project and program management, PRINCE 2, Agile, EVM, business process analysis and design, as well as operational and organizational excellence.
Link of the recorded session published on YouTube: https://youtu.be/9fO-JqENL0I
Riskpro is an operational risk management consulting firm with offices in Mumbai, Delhi, and Bangalore. It aims to provide integrated risk management solutions to mid-large sized companies in India. Riskpro's team has over 200 years of cumulative experience in risk management. It offers a variety of services including Basel II/III advisory, operational risk consulting, risk training, and recruitment of risk professionals.
The document discusses risk management frameworks and processes. It provides:
1) An overview of risk management, including highlighting risks at the project, program, and portfolio levels.
2) A risk management framework involving establishing context, risk identification, analysis, evaluation, and treatment.
3) Details of risk governance, including risk management plans, risk registers, governance documents, and ongoing and discrete risk activities.
A practical approach to defining indicators within an integrated ERM Framework
Workshop Overview
Many organisations have made considerable progress in the area of enterprise and operational risk management since the financial crisis in 2007/2008. However events over the last few years have demonstrated, and continue to demonstrate the need to make improvements in organisational risk management capabilities and tools.
One area of weakness and, particular challenge for many organisations is around indictors, specifically developing and managing with Key Risk indicators (KRIs). KRIs have a vital role to play in monitoring and managing risk exposure within any organisation, and should be developed and deployed in the context of a wider indicator suite which includes Key Performance Indicators (KPIs) and Key Control Indicators (KCIs).
Workshop Objective
This interactive workshop provided attendees with a deep understanding of developing and managing with Key Risk Indicators. We started by providing an overarching management framework which integrated strategy execution and risk management. We then moved on to clarify the role of KRIs, alongside KPIs and KCIs.
Using a combination of presentations and practical examples, we were able to:
Learn how to define robust suite of indicators, including the different between Leading and Lagging, and Financial and Non-Financial indicators
Understand how to use a well-structured risk definition to guide the definition of KRIs
Understand the relationship between risk appetite and KRIs, and however Risk Appetite should influence the definition of KRIs
Understand the role KRIs play in scenario analysis
Understand the role of KRIs in the risk assessment process
Understand the role of KRIs within the risk, regulatory and management reporting
Who Attended:
CROs, Directors, General Managers, Senior Management and Managers of: Operations, Operational Risk Management, Enterprise Risk Management, Internal Audit, Compliance, Operational Risk, Strategy and Performance.
Please contact andrew.smart@stratexsystems.com for more details about the presentation or to have a talk about our software solutions.
This document discusses different types of risk indicators. Operational risk indicators provide information on an organization's exposure to operational risks. Environmental risk indicators include trading volume, volatility in foreign exchange markets, exchange rate volatility, and interest rate volatility. Financial risk indicators measure deal volatility, dealing profit, and activity-based costing variances. Industrial risk indicators track metrics like the number of defective items produced and maintenance issues for production lines.
Operation Risk Management in Banking SectorSanjay Kumbhar
This presentation discusses operational risk management in the banking sector. It covers topics such as categories of operational risk, risk identification and analysis techniques, key risk indicators, and risk mitigation strategies. The presentation is delivered by five students and contains several sections that outline the flow of topics to be presented.
The document discusses establishing key risk indicators (KRIs) for information technology (IT). It explains that KRIs differ from key performance indicators (KPIs) in that KRIs serve as early warning signs of increased risk exposure, while KPIs provide an overview of past performance. Selecting the right KRIs for an IT organization involves understanding organizational objectives and risks that could impact achieving those objectives. Linking objectives, strategies, and KRIs allows an organization to proactively manage strategic risks and help ensure objectives are met. IT risks in particular need to be monitored through KRIs due to IT's role in enabling business strategies and operations.
Operational risk management and measurementRahmat Mulyana
a short description in mixed English and Bahasa Indonesia on Operational Risk Management and Measurement, in particular value at risk calculation using Monte carlo Simulation. Another method using EVT (Extree Value Theory) will be delivered shortly. regards
This document outlines the objectives and key components of risk assessment and management. It defines risk management as minimizing adverse risks to an organization. The main stages are identifying hazards, evaluating associated risks, and controlling risks. Quantitative and qualitative risk assessment methods are described. Various risk assessment techniques like failure mode and effects analysis, hazard and operability studies, and fault tree analysis are explained. The document provides a process for practical risk assessment involving classifying work activities, identifying hazards, determining risk levels, deciding if risks are tolerable, and preparing risk control plans. It emphasizes that risk assessment is an ongoing and evolving process.
The document discusses operational risk and provides guidance on defining, identifying, measuring, monitoring, controlling, and mitigating operational risk according to the Basel Committee on Banking Supervision. It addresses issues with operational risk loss data and outlines principles for developing an appropriate operational risk management environment, process, and framework. The document also examines challenges with using internal and external loss data for quantifying operational risk capital requirements.
The document discusses traditional and modern approaches to operational risk management (ORM). Under the traditional approach, risk is defined as the probability of a loss occurring, while the modern approach defines risk as a measure of exposure to loss at a level of uncertainty. The modern ORM framework uses a multidimensional approach that incorporates cost-benefit analysis to optimize risk-reward, risk controls, and risk transfer. It also uses a taxonomy to classify operational failures according to contributory factors, events, and consequences.
The document discusses operational risk and Basel II regulations. It defines operational risk as losses from internal failures or external events. It outlines the three pillars of Basel II which establish minimum capital requirements, supervisory review, and market discipline. It describes the different approaches for calculating operational risk capital charges, including the Basic Indicator Approach, Standardized Approach, and Advanced Measurement Approach.
Planning processes can lead to higher productivity, higher accuracy, and faster turnaround for essential business tasks. This lesson will dig into process planning - what it is, why we should do it, and the steps to follow to plan or improve a process.
How does Operational Risk Management fit into an organization's Strategic Planning? This presentation attempts to provide a functional and implementable response.
The document discusses risk assessment and management. It proposes assessing risk using a equation that considers the likelihood and impact of threats. It recommends establishing security policies, implementing countermeasures through a defense in depth strategy, and maintaining vigilance. Key terms like vulnerabilities, exploits and adversaries are also defined to understand risks.
Operational risk & business continuity managementUjjwal 'Shanu'
The document discusses integrating operational risk management and business continuity management approaches. It argues that taking an integrated approach provides synergies between the two frameworks in terms of stakeholders, framework components, and intended outcomes. An integrated approach allows for a proactive identification and assessment of risks, evaluation of controls, mitigation of operational risks through business continuity plans and insurance, and calculation of capital requirements. Embedding the integrated approach culturally is also important. The presentation concludes that an integrated operational risk and business continuity framework can help define risk appetite, be practical and simple for businesses to implement, and drive efficiencies.
The document is a report submitted for a Master's degree that studies the performance of equity schemes of HDFC Mutual Fund compared to other companies. It includes an introduction to mutual funds and HDFC Mutual Fund, as well as sections on analysis techniques, findings, and acknowledgements. The objective is to evaluate the risk and returns of HDFC equity schemes versus two other competitors over a 5-year period.
This document summarizes a market research project report submitted by Sunil Sanjodiya to the Sanghvi Institute of Management and Science in partial fulfillment of requirements for a postgraduate diploma in management. The report studies the attractive features of HDFC Mutual Fund to develop investor perception levels in Indore, India. It includes an acknowledgement, declaration, certificate from faculty guide, preface, and chapters on the history and phases of development of the Indian mutual fund industry as well as the company profile of HDFC Mutual Fund.
Business Process Managers are faced with two different tasks: Improve organizational performance by streamlining and automating workfl ows while ensuring compliance with regulatory and audit requirements. Both tasks involve the notion of process risk, and introduce a series of questions: Does the risk exposure of a
given process match the risk appetite of the enterprise? Are there better ways to mitigate certain risk factors by redesigning our processes? And how can we measure the level of compliance during the execution of a given process? Contemporary process modeling languages offer little help in identifying and mapping process risk. This session addresses a multiperspective approach to capturing and understanding process risk,
and illustrates ways to use this newfound information to create innovative process designs that address risk factors in a cost effective way.
This document discusses the importance of managing uncertainty for organizations. It notes that the future is uncertain and non-linear, and can be impacted by random and disruptive events. Effective risk management requires considering these complex factors and incorporating them into decision making frameworks. The document also provides an overview of different mechanical processes and theories that can help understand complex systems and uncertainty, from thermodynamics to quantum mechanics.
Operational risk management has evolved over time as organizations seek to systematically manage risks. Key concepts include inherent risk, likelihood, exposure, and treatments like transfer, accept, and optimize. Operational risk can arise from organization, processes, technology, human factors, or external events. It is measured using tools like control and risk self-assessments to identify threats, controls, and residual risks. The goal is integrated risk management to both control risks and create shareholder value through efficiency and competitive advantage.
Portfolio Management involves three key steps:
1) Defining investments and selecting/prioritizing projects based on their strategic contribution and other criteria.
2) Periodically reviewing the portfolio to ensure projects are delivering benefits and align with changing strategies. Failing projects may be stopped.
3) Balancing the portfolio by optimizing the mix of investments against the organization's capacity and goals. This allows adapting to a changing business environment.
The 2nd seminar of Friends4Growth in Ho Chi Minh city with Prof. Enoch Ch'ng from SMU - Singapore Management University.
Friends4Growth
Together We Grow
--------------------------------------------------
Friends4Growth is a group of young professionals, who share a common passion to learn and grow more in their career through formal and informal educational opportunities. The group was founded by Vietnamese national Le Tran, a Wharton MBA Class of 2009.
The Friends4Growth mission is as follows:
- Be a place for young professionals to exchange and enhance knowledge
- Bring educational opportunities to members by providing access to well-known professors, business leaders and industry experts
- Provide information of universities around the world to members with intention to study abroad
- Share experience in studying, job search, working and living outside Vietnam
To achieve its mission, the group organizes various activities on a monthly basis to its members, such as:
- Seminars on various industry topics, with a sponsorship of the Singapore Management University.
- Coffee chats with experienced professionals from more developed economies
- Q&A sessions covering overseas life and work from seasoned experts
Website: www.friends4growth.com
Join us at: http://facebook.com/friends4growth and http://vn.linkedin.com/in/friends4growth
If you have any inquiry, please contact us at info@friends4growth.com
Operational Risk Management - Understanding Your Risk LandscapeEneni Oduwole
This presentation provides insights on how the proper implementation of Operational Risk Management can lead to effective risk profiling, analysis and mitigation. It introduces operational risk as a bedrock for meaningful risk management irrespective of which industry an organization plays in.
Malaysia Airlines Flight MH370 went missing on March 8, 2014 while flying from Kuala Lumpur to Beijing with 239 people on board, including 227 passengers and 12 crew members. The plane's communications were lost about 40 minutes into the flight. Despite an extensive international search effort, the plane has not been located and its fate remains unknown. The search has focused on the southern Indian Ocean based on satellite data.
Return and risk, systematic investment plan of mutual fundamulya bachu
This document provides a project report on return and risk of systematic investment plans (SIPs) of mutual funds. The report was submitted by B. Amulya to partial fulfillment of an MBA degree. It includes sections on the introduction, theoretical background of mutual funds, Karvy Stock Broking Limited (the organization studied), concepts related to return, risk and SIPs, findings, conclusions and suggestions. The project analyzed growth schemes offered via SIPs by various fund houses to understand performance over 1, 3 and 5 years. The scope was limited to the Indian mutual fund industry and data was collected from secondary sources like fact sheets and websites.
Malaysia Airlines Flight MH370 carrying 227 passengers and 12 crew members disappeared on March 8, 2014 shortly after taking off from Kuala Lumpur. The plane lost contact with air traffic control 120 nautical miles off the east coast of Malaysia and a massive international search effort has been unable to locate the missing flight. The disappearance of MH370 could significantly impact Malaysia Airlines through a loss of customer trust and declining revenues as travelers avoid the airline in the aftermath of the incident.
Introduction to Risk ManagementMana.6330OverviewTatianaMajor22
The document provides an overview of risk management, including definitions of risk, types of risk (operational, reputational, business, cyber), categories of corporate risk, approaches to managing risk (avoidance, reduction, transfer, retention), sources of risk that can lead to crisis, and the stages of crisis management (pre-crisis, crisis response, post-crisis). It also discusses risk fundamentals such as perception of risk, risk approaches, cause and effect analysis, resilience, risk management processes, and factors to consider within an organization.
This document provides information about a project submitted by Lenin Jeyakumar, a student at Vivek College of Commerce in Mumbai, India. The project is about disaster management and was submitted in 2015-2016 for a Master's in Commerce program. It includes a title page, certificate from the project guide, a declaration by the student, acknowledgements, an index of topics, and the beginning of the first chapter which provides an introduction to strategic management and disaster management.
This presentation is from the National Center for Campus Public Safety’s (NCCPS) webinar, Sports and Special Event Security Planning: Best Practices. In this August 2015 webinar, Richard Morman, CPP, CSSP, independent consultant and deputy chief of police (retired), The Ohio State University, discusses best practices for safely and effectively managing large on-campus events.
Risk management concepts and principles are identified. Risk is defined as the chance of harm or loss from a hazard. It is differentiated from hazard, which is the source of potential harm. Sources of risk include uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural disasters, attacks, and unpredictable events. Strategies to manage threats include avoidance, reduction, transfer, and retention. Principles of risk management established by the International Organization for Standardization are also outlined, such as creating value, being integrated into processes, and addressing uncertainty.
Risk management: the systematic application of management policies , procedures and practices to the tasks of identifying , analysing , assessing , treating and monitoring risk.
The document discusses the risk management process, which consists of 5 steps: 1) identifying risks, 2) analyzing risks, 3) prioritizing risks, 4) treating risks, and 5) monitoring risks. It provides details on each step, such as how to identify potential risks, analyze their scope and severity, rank their priority, implement solutions to address risks, and continuously monitor risks. The goal of the risk management process is to reduce threats to an organization's capital and earnings through a systematic, scientific approach.
This document discusses the concepts of risk and risk management. It defines risk as the chance of harm, loss, or negative consequences. Risks can be physical, financial, or related to reputation. Risk management involves identifying risks, measuring their probability and severity, controlling risks through prevention or mitigation, and financing risks through insurance or other means. The document provides examples of different types of risks like political risk and discusses challenges in practical risk management like organizational competence and conflicting objectives.
CHAPTER 7 Risk Assessment, Security Surveys, and PlanningLEARNIN.docxchristinemaritza
CHAPTER 7 Risk Assessment, Security Surveys, and Planning
LEARNING OBJECTIVES
After completing this chapter, the reader should be able to
· ■ define risk and risk assessment.
· ■ list and describe five distinct types of risk that threaten individuals and organizations.
· ■ discuss management techniques associated with risk elimination, reduction, and mitigation.
· ■ evaluate risks to determine vulnerability, probability, and criticality of loss.
· ■ conduct a risk assessment utilizing subjective as well as objective measurements.
· ■ conduct a security survey.
· ■ analyze needs identified through a risk assessment.
· ■ develop appropriate courses of action to eliminate, reduce, or mitigate risks identified in a risk assessment.
· ■ discuss the importance of the budget process.
· ■ demonstrate knowledge of crime prevention through environmental design.
· ■ demonstrate knowledge of emergency planning.
INTRODUCTION
A major focus for security management is the concept of risk. Subjective information as well as objective measurement instruments (such as a security survey) are used in an essential first step of a planning process designed to identify and assess the threat posed by each risk source. As the planning process proceeds, security personnel make recommendations and determine the financial impact of any potential risk mitigation strategy. Planning activities also involve preparation for emergency situations and consideration of anticrime measures available through environmental manipulation.
THE CONCEPT OF RISK
Risk Defined
Risk may be defined as the possibility of suffering harm or loss, exposure to the probability of loss or damage, an element of uncertainty, or the possibility that results of an action may not be consistent with the planned or expected outcomes. A decision maker evaluates risk conditions to predict or estimate the likelihood of certain outcomes. From a security perspective, risk management is defined as the process involved in the anticipation, recognition, and appraisal of a risk and the initiation of action to eliminate the risk entirely or reduce the threat of harm to an acceptable level. A risk involves a known or foreseeable threat to an organization’s assets: people, property, information, or reputation. Risk cannot be totally eliminated. However, effective loss prevention programs can reduce risk and its impact to the lowest possible level. An effective risk management program can maximize asset protection while minimizing protection costs (Fay, 2000; Fischer & Janoski, 2000; Kovacich & Halibozek, 2003; Robbins & Coulter, 2009; Simonsen, 1998; Sweet, 2006).
Types of Risk
Generally, risk is associated with natural phenomena or threats created by human agents. Natural risks arise from earthquakes, volcanic eruptions, floods, and storms. Risks created by human beings include acts or failures to act that lead to crime, accidents, or environmental disaster. As many as five distinct types of risk threaten individuals a ...
The document discusses project risk management from the perspective of a development institution. It provides definitions of risk, project, and project management. Project risk management involves planning, organizing, securing, and managing resources to control the effects of uncertainties on a project's objectives. The document outlines the roots of uncertainty in a project, types of risks, and the risk management process. It emphasizes that risk management should be integrated into an organization's culture and involve identifying, assessing, and prioritizing risks.
The document discusses the evolution of risk management from early humans creating tools for protection and hunting, to modern organizations systematically managing risks. It describes the risk management process as identifying potential risks, evaluating their frequency and severity, selecting techniques to mitigate risks like retention, transfer, or avoidance, and then monitoring the process. Key aspects of risk management for organizations are identifying various property, liability, and human risks, analyzing their financial impact, and using tools like risk controls, financing, and cost-benefit analysis to select the best risk management strategies.
This document defines key concepts in risk management including risk, risk analysis, risk assessment, risk communication, and risk management. It explains that risk management involves identifying potential risks, assessing their likelihood and impact, selecting techniques to address them such as tolerating, treating, transferring or terminating risks, then implementing and continually improving the risk management process using a plan-do-check-act framework. Common risk management strategies are outlined along with limitations of the approach.
The document discusses risk assessment, job safety analysis, and hazard identification for construction site work. It provides definitions and guidelines for conducting risk assessments and job safety analysis (JSA). The key points are:
1) Major accidents on construction sites are often due to lack of knowledge about job hazards and controls. JSA helps by training workers on task hazards and safe work procedures.
2) JSA involves breaking jobs into steps, identifying hazards for each step, and developing control measures. It improves safety understanding and ensures written work methods.
3) Examples of a risk assessment and JSA are provided to demonstrate how they identify hazards for activities like scaffold erection and dismantling, and establish preventive measures.
This document provides a summary of key aspects that should be considered when developing a disaster preparedness plan for mission-critical facilities. It discusses the types of disasters that can occur and how to prevent failures through comprehensive design, maintenance programs, and addressing human errors. The disaster planning process involves preparation, detection and response, and recovery. Critical information and resources need to be backed up and stored at multiple locations. Assessments of hazards, vulnerabilities, risks, recovery capabilities, and safety are recommended to identify weaknesses and improve the disaster preparedness plan.
The document provides information on risk assessment, job safety analysis (JSA), and how to conduct them properly. It discusses that the majority of construction accidents are due to lack of knowledge about job hazards and controls. JSA covers this gap by training workers on each job task and how to perform it safely. It outlines the steps to conduct a JSA, including selecting a job, breaking it into steps, identifying hazards for each step, developing controls, and monitoring. The benefits of JSA include improved safety understanding and ensuring written work methods for all jobs.
This document discusses risk assessment and job safety analysis (JSA) for construction projects. It provides definitions and processes for identifying hazards, assessing risks, and analyzing jobs to reduce accidents. Key points include:
- Major construction accidents are often due to lack of knowledge about job steps, hazards, and controls. JSA covers this gap by training workers.
- JSA shall be conducted for critical, non-routine, permit-to-work, and routine tasks. It breaks jobs into detailed safe procedures.
- Risk assessment identifies hazards and evaluates risks to prevent injuries. It is done proactively through risk assessments and reactively through accident investigations.
- The risk assessment process involves identifying hazards and people
Management of risks and implication on the nigerian manufacturing sectorAlexander Decker
This document discusses risk management in the Nigerian manufacturing sector. It identifies key risks like employees, suppliers, customers, and competitors. It examines how risks should be assessed and prioritized, with larger risks and those that can't be avoided or transferred retained. Improperly assessing and prioritizing risks can waste time on unlikely events. The study was conducted through surveys and interviews of five manufacturing companies in Nigeria to understand their risk management practices.
This document provides an overview of crisis management training. It defines crisis management and lists common types of crises. It then outlines the key elements of crisis management planning including defining the crisis, analyzing stakeholders, developing communication and technical strategies, and establishing crisis management teams. It discusses principles of crisis management such as identifying the type and impact of an incident and determining responsibility. The document also covers developing competencies through training exercises, management review, and developing a competency model.
The document discusses risk management in IT projects. It defines key risks like threats and vulnerabilities and explains two approaches to risk assessment: qualitative and quantitative. It also outlines four common strategies to manage risks: mitigation, avoidance, acceptance, and transference. Managing risks is important for IT projects to help them be successful and avoid potential problems. Being able to identify, evaluate, and prioritize risks is an essential part of the risk management process.
Week 2 Introduction to risk management.pdfJeffreyKwame1
The document outlines the risk management process. It begins by defining risk management as a systematic process for managing risks faced by an organization. The objectives of risk management are classified as pre-loss, such as reducing costs and anxiety, and post-loss, like ensuring the organization's survival after a loss. The risk management process involves 4 steps: 1) identifying loss exposures, 2) analyzing the frequency and severity of losses, 3) selecting risk control and financing techniques, and 4) implementing and monitoring the strategies. Common techniques include avoidance, loss prevention, reduction, and retention or transfer of risk.
The document provides information about an executive development workshop on crisis management in the retail sector to be held in Bangkok, Thailand on April 25-26, 2012. It outlines the key learning outcomes of the workshop, which include developing crisis preparedness and leadership skills. The workshop will cover topics such as developing crisis management plans, effective communication during a crisis, and testing crisis management plans. It also provides biographies of the speaker presenters and information on how to register for the event.
Andreas Schleicher presents PISA 2022 Volume III - Creative Thinking - 18 Jun...EduSkills OECD
Andreas Schleicher, Director of Education and Skills at the OECD presents at the launch of PISA 2022 Volume III - Creative Minds, Creative Schools on 18 June 2024.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
How Barcodes Can Be Leveraged Within Odoo 17Celine George
In this presentation, we will explore how barcodes can be leveraged within Odoo 17 to streamline our manufacturing processes. We will cover the configuration steps, how to utilize barcodes in different manufacturing scenarios, and the overall benefits of implementing this technology.
This presentation was provided by Racquel Jemison, Ph.D., Christina MacLaughlin, Ph.D., and Paulomi Majumder. Ph.D., all of the American Chemical Society, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
How to Manage Reception Report in Odoo 17Celine George
A business may deal with both sales and purchases occasionally. They buy things from vendors and then sell them to their customers. Such dealings can be confusing at times. Because multiple clients may inquire about the same product at the same time, after purchasing those products, customers must be assigned to them. Odoo has a tool called Reception Report that can be used to complete this assignment. By enabling this, a reception report comes automatically after confirming a receipt, from which we can assign products to orders.
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxOH TEIK BIN
(A Free eBook comprising 3 Sets of Presentation of a selection of Puzzles, Brain Teasers and Thinking Problems to exercise both the mind and the Right and Left Brain. To help keep the mind and brain fit and healthy. Good for both the young and old alike.
Answers are given for all the puzzles and problems.)
With Metta,
Bro. Oh Teik Bin 🙏🤓🤔🥰
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
ORM Operational Risks Management
1. FliGhT saFeTy coUrse
Welcome
Operational Risk Management
by Tariq minhas
For Training Purpose Only 1
2. operaTional risk manaGemenT
OVERVIEW
• What is ORM - The Essentials
• Why ORM?
• The Integration Imperative
• ORM Leadership Opportunity
• ORM Applied
For Training Purpose Only 2
3. operaTional risk manaGemenT
What is Risk Management?
Risk Management is a decision making process aimed
at reducing the number of losses of people,
equipment and material due to accidents.
It is a pro-active approach to accident reduction
which has been proven on the battlefield as well as in
private sector companies.
Risk management applies to war, an emergency and
to peace time operations
For Training Purpose Only 3
4. operaTional risk manaGemenT
What is Operational Risk Management?
The risk formula : The risk formula attempts to capture
the various components which influence the amount
of risk which a hazard may produce for a community or
population.
For Training Purpose Only 4
5. operaTional risk manaGemenT
Risk :
The probability and severity of accident or loss from
exposure to various hazards, including injury to people
and loss of resources.
Risk = the possibility of loss, injury, death or other
consequence
Hazard = a destructive phenomenon or event
Exposure = duration and/or extent of a hazard
Vulnerability = susceptibility to damage or harm by a
hazard
Manageability = the capacity to respond to Needs
created by a Disaster
For Training Purpose Only 5
6. operaTional risk manaGemenT
What is Operational Risk Management?
Operational Risk Management (ORM)
The process of detecting, assessing, and controlling risk
associated with organizational operations.
It is a logic-based, common sense approach to making
calculated decisions on the various factors associated
with any kind of activity.
For Training Purpose Only 6
7. operaTional risk manaGemenT
What is Operational Risk Management?
These factors include: human(s), machine(s),
environment, management, and mission. Because
risk is inherit in CAP missions and activities, CAP
officially adopted the six-step ORM process in May,
1997 as its method for evaluating the level of risk;
identifying ways to control, mitigate, or eliminate
risk; and making decisions on whether and how to
proceed with the activity.
For Training Purpose Only 7
8. Why Do DisasTers happen?
Disaster:
A disaster is a natural or man-made (or
technological) hazard resulting in an event of
substantial extent causing significant physical
damage or destruction, loss of life, or drastic change
to the environment.
A disaster can be defined as any tragic event
resulting from events such as earthquakes, floods,
catastrophic accidents, fires, or explosions. It is a
phenomenon that can cause damage to life and
property and destroy the economic, social and
cultural life of people.
For Training Purpose Only 8
9. Why Do DisasTers happen?
• Disaster:
The word disaster implies a sudden irresistible and
unforeseen event.
Unexpected interruption of critical infrastructure
induced by nature, humans, or technology failure.
• A disaster could result in a major illness, death, a
substantial economic or social misfortune.
• At the community level, it could be a flood, a fire, a
terrorism act, a collapse of buildings in an
earthquake, the destruction of livelihoods, an
outbreak or displacement through conflict.
For Training Purpose Only 9
10. Why Do DisasTers happen?
• Disaster Risk Factors
Factors that alone or with the combination of other
factors can effect to achieve safety 10 Basic factors
to be considered;
1. Design and Construction Flaws
2. Deferred Maintenance
3.Economic Pressure
4.Schedule limitations
For Training Purpose Only 10
11. Why Do DisasTers happen?
• Disaster Risk Factors (continued--)
5.Inadequate Training
6.Not Following Procedures
7.Lack of Planning and Preparedness
8.Communication Failure
9. Arrogance
10.Stifling Political Agendas
For Training Purpose Only 11
13. Why Do DisasTers happen?
• Disaster Recovery:
According to ReaR's home page, disaster recovery is
“the process by which a business function is restored
to the normal, steady state after a disaster.”
For Training Purpose Only 13
14. Why Do DisasTers happen?
Classifying Disasters;
Disasters come in many different forms mainly can be
divided in to three groups;
1. Man Made Accidents
2. Terrorist Act(Attacks)
3. Natural disasters
For Training Purpose Only 14
15. Why Do DisasTers happen?
Classifying Disasters;
Disasters come in many different forms mainly can be
divided in to three groups;
1. Man Made Accidents
2. Terrorist Act(Attacks)
3. Natural disasters
For Training Purpose Only 15
16. Why Do DisasTers happen?
Classifying Disasters;
1. Man Made Accidents
• Disasters directly caused by people
• Conflict
• Industrial events: explosions, hazardous
• materials and pollution
• Transportation events
For Training Purpose Only 16
17. Why Do DisasTers happen?
Classifying Disasters;
2.Terrorist Act(Attacks)
• Terrorist groups
• Designated terrorist organizations
• Charities accused of ties to terrorism
• State terrorism
• State-sponsored terrorism By state: Israel , Russia, India,
United States
• Organization Financing, Fronting, Training camp,
Leaderless resistance
• Fighting terrorism
For Training Purpose Only 17
18. Why Do DisasTers happen?
Classifying Disasters;
3.Natural disasters
• Tropical storms (hurricanes, cyclones)
• Floods
• Droughts
• Extreme hot or cold
• Volcanoes
• Earthquakes
• Landslides
• Tsunamis
For Training Purpose Only 18
20. WHY DO DISASTERS HAPPEN?
• Disaster Recover Plan: A strategy to recover from a
disaster with minimum impact on infrastructure
For Training Purpose Only 20
21. OPERATIONAl RISk MANAgEMENT
Why ORM?
• It is impossible to completely reduce all risk.
• We must know to control hazards in order to
decrease the amount of risk that we are exposed to.
• To ensure necessary risks are taken
ORM:
• Is an important tool for training realism
• Provides potential to expand capabilities
• Assures necessary risk taking to enhance superiority
• Natural evolution from traditional risk management
• Systematic decision-making tool that balances risk
cost & benefits
For Training Purpose Only 21
22. OPERATIONAl RISk MANAgEMENT
OBJECTIVE of the ORM process:
Protecting people, equipment and other resources,
while making the most effective use of them.
Preventing accidents, and in turn reducing losses, is
an important aspect of meeting this objective.
In turn, by minimizing the risk of injury and loss, we
ultimately reduce costs and stay on schedule.
For Training Purpose Only 22
23. OPERATIONAl RISk MANAgEMENT
OBJECTIVE AND GOALS
MAXIMUM
CAPABILITY
PROTECT PERSONNEL &
RESOURCES
PREVENT OR ADVANCE OR OPTIMIZE
MITIGATE LOSSES GAIN
EVALUATE AND MINIMIZE EVALUATE AND MAXIMIZE
RISKS GAIN
IDENTIFY, CONTROL, AND IDENTIFY, CONTROL AND
DOCUMENT HAZARDS DOCUMENT OPPORTUNITIES
For Training Purpose Only 23
24. OPERATIONAl RISk MANAgEMENT
4 KEY ORM PRINCIPLES
1.Accept no unnecessary risks.
2.Make risk decisions at the appropriate level.
2.Accept risks when benefits outweigh costs.
3.Integrate ORM into doctrine and planning at all
levels.
For Training Purpose Only 24
25. OPERATIONAl RISk MANAgEMENT
Accept No Unnecessary Risks. 1
BUT.... NOBODY TAKES “UNNECESSARY” RISKS?
If all the hazards that could have been detected have
not been detected then unnecessary risks are being
accepted.
The single greatest advantage of ORM over traditional
risk management is the consistent detection of 50%+
.more hazards
For Training Purpose Only 25
26. OPERATIONAl RISk MANAgEMENT
2. Make Risk Decisions at the Appropriate Level
Factors below become basis of a decision- making
system to guide leaders;
•Who will answer in the event of a mishap?
•Who is the senior person at the scene?
•Who possesses best insight into the full benefits and costs of a
risk?
•Who has the resources to mitigate the risk?
•What level makes the most operational sense?
•What level makes these types of decisions in other activities?
•Who will have to make this decision in combat operations?
For Training Purpose Only 26
27. OPERATIONAl RISk MANAgEMENT
.Accept Risks When Benefits Outweigh Costs. 3
WHAT HAPPENS WHEN AN ORGANIZATION STOPS TAKING
RISKS
MERIUM-WEBSTER: “BUREAUCRACY: A system of
administration characterized by lack of initiative and flexibility,
by indifference to human needs or public opinion, and by a
tendency to defer decisions to superiors or to impede action
.”with red tapeA BOLD, RISK-TAKING ORGANIZATION IS ALWAYS
MAINTAINING
. A CHALLENGE WHEN YOUR UNIT IS NOT ON A MISSION
.ORM HELPS
For Training Purpose Only 27
28. OPERATIONAl RISk MANAgEMENT
4.Integrate ORM Into Doctrine and Planning At All Levels.
This is the one we
Loss Control Operational !!want
Staff Injects Leaders Add-
On
Operational
Process
Loss Control
Operational Operational Occurs
Process Process Within
The Process
For Training Purpose Only 28
29. OPERATIONAl RISk MANAgEMENT
WHAT IS AN “OPERATIONAL PROCESS”?
Operational Securing Building
Maintaining Supplying
Planning
and all their sub-processes
For Training Purpose Only 29
30. OPERATIONAl RISk MANAgEMENT
ORM IS BASED ON SYSTEMS MANAGEMENT CONCEPTS
5M Model
Management
Mission
Machine
Man
Media
For Training Purpose Only 30
31. OPERATIONAl RISk MANAgEMENT
THE ORM 6-STEP PROCESS
Supervise . 6 Identify . 1
and Review the Hazards
Risk Control . 5 Assess . 2
Implement the Risks
Make . 4 Analyze . 3
Control Risk Control
Decisions Measures
For Training Purpose Only 31
32. OPERATIONAl RISk MANAgEMENT
Step 1 - Identify the Hazard
Process: Emphasize hazard ID tools. Adds severity and
early detection.
Output: Significant (50%+) improvement in the
detection of hazards.
For Training Purpose Only 32
33. OPERATIONAl RISk MANAgEMENT
7 - Primary Hazard ID Tools
BROAD RANGE OF APPLICATION AT ANY LEVEL
• Operations Analysis/Flow Diagram
• Preliminary Hazard Analysis
• What If
• Scenario
• Logic Diagrams
• Change Analysis
• Cause and Effect
For Training Purpose Only 33
34. OPERATIONAl RISk MANAgEMENT
Specialized and Advanced Hazard ID Tools
• Specialized tools accomplish specific ORM objectives.
Map analysis, interface analysis, mission
protection tools, training realism, opportunity
assessment
• Advanced tools are used by specialists and
professionals to add depth to ORM applications
For Training Purpose Only 34
35. OPERATIONAl RISk MANAgEMENT
EXAMPLE: THE DRIVE TO WORK
WHAT IF ANALYSIS
.What if the car catches fire
.What if a carjack is attempted
.What if I have to take an unknown detour
.What if I run out of gas
.What if another car rear ends me
For Training Purpose Only 35
36. OPERATIONAl RISk MANAgEMENT
Step 2 - Assess the Risk
Process: All hazards evaluated for total impact on
mission or activity. Root causes determined and risk
(levels assigned (EH, H, M, L
Output: Personnel throughout the organization know
the priority risk issues of the command and of their
.function
For Training Purpose Only 36
37. OperatiOnal risk ManageMent
THE ASSESSMENT TOOLS ADD OBJECTIVITY TO
THE EVALUATION OF RISK
• Risk assessment matrix: Requires specific
evaluations of severity, probability, and when
necessary, exposure
• Totem pole: Induces the prioritization of risk issues
across functions and across the organization
For Training Purpose Only 37
38. OperatiOnal risk ManageMent
THE RISK ASSESSMENT MATRIX
KEY TOOL FOR RISK ASSESSMENT
Probability
Frequent Likely Occasional Seldom Unlikely
A B C D E
S Catastrophic I Extremely
E
V Critical
E
II High High
R
I Moderate III Mediu
T m
Y Negligible IV Low
Risk Levels
For Training Purpose Only 38
39. OperatiOnal risk ManageMent
EXAMPLE:THE DRIVE TO WORK
Type of Risk Risk Level
.What if the car catches fire MED
.What if a carjack is attempted HIGH
.What if I have to take an unknown detour LOW
What if I run out of gas. MED
.What if another car rear ends me MED
For Training Purpose Only 39
40. OperatiOnal risk ManageMent
Step 3 - Analyze Risk Control Measures
Process: Comprehensive risk control options are
developed for risks based on a worst-first basis.
Output: A full range of cost effective, mission
supportive, risk controls for the consideration of the
decision maker.
For Training Purpose Only 40
41. OperatiOnal risk ManageMent
The Risk Control Option Tools Add Scope & Depth
• Basic or “macro” risk control options: Reject, Avoid,
Delay, Transfer, Spread, Accept, Compensate,
Reduce
• Risk control options matrix: 46 specific “reduce-
focused” control options - applicable at up to four
levels in the organization
For Training Purpose Only 41
42. OperatiOnal risk ManageMent
EXAMPLE: THE DRIVE TO WORK
What if the car catches fire
MEDIUM
:Macro options
Transfer - Insurance
Reduce (use Control Options Matrix) -
Engineer gas tank
Drive defensively
Focused maintenance
Emergency response plan & equipment
For Training Purpose Only 42
43. OperatiOnal risk ManageMent
Step 4 - Make Control Decisions
Process: A decision-making system gets risk decisions
to the right person, at the right time, with the right
support.
Output: Personnel know their decision-making
authority and limitations and take necessary risks.
For Training Purpose Only 43
44. OperatiOnal risk ManageMent
ORM Uses Proven Decision-making Tools
• Decision-making systems get the decision to the
right person, at the right time, with the right
support.
• Basic cost benefit and return on investment analysis
assure maximum benefit for the risk control $.
• Decision-making matrices and other modern
decision-making tools improve decision quality.
• The leader question list induces better staff inputs.
For Training Purpose Only 44
45. OperatiOnal risk ManageMent
ESTABLISHING A DECISION MAKING GUIDELINE
EXAMPLE
RISK LEVEL DECISION LEVEL
Extremely High Wing Commander or specifically
authorized designee(Top level M)
High Group Commander or specifically
authorized designee
Medium Team leader, or senior leader on
the scene
Low Any person in a leadership
position
For Training Purpose Only 45
46. OperatiOnal risk ManageMent
EXAMPLE:THE DRIVE TO WORK
What if the car catches fire
MEDIUM
(Who decides: Vehicle owner(s
Control: Emergency response plan & equipment
: Decision Cost of control
Cost of loss
Fire extinguisher $15
Deductible - $500
?Rate increase
Car down-time
Repair/Replacement hassle
For Training Purpose Only 46
47. OperatiOnal risk ManageMent
Step 5 - Risk Control
Implementation
Process: Leaders lead, operators are involved, all
are accountable.
Output: ORM initiatives always have positive
mission impact.
For Training Purpose Only 47
48. OperatiOnal risk ManageMent
ORM Implementation Tools & Guidelines Help
Controls Click with Operators
• The involvement continuum guides the high
degree of operator input to ORM actions
• The leader involvement actions list and the leader
opportunity job aid help assure effective leader
influence
• The motivation model makes application of
modern behavior management techniques easier
For Training Purpose Only 48
49. OperatiOnal risk ManageMent
EXAMPLE:THE DRIVE TO WORK
What if the car catches fire
MEDIUM
•Transfer - Insurance Reduce - OPR: Dad
• Engineer gas tank OPR: Ford
• Drive defensively OPR: Driver
• Focused maintenance OPR: Dad
• Emergency response plan & equipment OPR: Team Mom &
Dad
For Training Purpose Only 49
50. OperatiOnal risk ManageMent
Step 6 - Supervise and Review
Process: Progress measured through increased mission
effectiveness, mishap results and direct indicators of
risk.
Output: ORM performance status determined real
time.
For Training Purpose Only 50
51. OperatiOnal risk ManageMent
Review and Feedback Procedures Measure &
Leverage ORM Results
• Eliminate invalid statistical uses of mishap rates and
numbers
• Refocus measurement on direct measures of risk
(critical behaviors, knowledge, conditions, etc.)
• Radically improve the effectiveness of feedback
systems through modern data and communications
systems
For Training Purpose Only 51
52. OperatiOnal risk ManageMent
USING THE 6-STEP PROCESS -THE RISK MANAGEMENT
CONTINUUM
PLANNING OPERATIONS AFTER-ACTION
Deliberate ORM Largely Time-critical Assess indicators
Detailed Hazard ID Change Analysis Deliberate ORM
Integration Real Time Integration
Highly Decentralized Feedback to Planning
We try to get But continue
most ORM done the process here
here and here
For Training Purpose Only 52
53. OperatiOnal risk ManageMent
USING THE 6-STEP PROCESS
LEVELS OF EFFORT
TIME CRITICAL DELIBERATE STRATEGIC
Little Lot of
Time Time
Resources Resources
Risk Risk
SELECTED PRIMARY SPECIALIZED ADVANCED
PRIMARY
For Training Purpose Only 53
54. OperatiOnal risk ManageMent
Integrating the ORM Process
Overview
• Why integration is critical?
• 12 Strategies for ORM integration.
• The importance of pace.
For Training Purpose Only 54
55. OperatiOnal risk ManageMent
WHY INTEGRATION IS CRITICAL?
Integration:
• Forces balancing of loss control and other mission needs
• Captures more of the knowledge and experience of
large numbers of operators
• Reduces the number and diversity of references needed
to do the job right
• Eliminates redundancy and gaps between loss control
functions
• Strengthens accountability
• Reduces costs and workloads (in plans, materiel
development cycles, etc.)
For Training Purpose Only 55
56. OperatiOnal risk ManageMent
THE TWELVE STRATEGIES FOR PROGRAM
INTEGRATION
1. Accountability 7. Employee Activities
2. Teaming 8. Process Integration
3. Partnership 9. Direct Change
4. Integrate in Training 10. Gain a Champion
5. Risk Decision Points 11. Integrate in Strategic
6. Organization & Planning
Policy Structure 12. Integrate into
Measurement
For Training Purpose Only 56
57. OperatiOnal risk ManageMent
THE IMPORTANCE OF PACE
• Don’t use the shotgun
• Don’t get out in front of the organization - too far
• Don’t “inspect-in” ORM
• Do focus on “targets”
• Do expect crawl, walk, run
• Patience, patience, patience
For Training Purpose Only 57
58. OperatiOnal risk ManageMent
ORM MATURATION
• Vision
• Organization Approach
• Background
• Strategy
For Training Purpose Only 58
59. OperatiOnal risk ManageMent
VISION
Macro:
Every Leader, Member, & Employee Manages Risk in All They
Do... On- & Off-Duty
Micro:
On-Duty - Every Organization Manages Normal Operational
Risk Profile
- Unique Operations Identified & Assessed
Off-Duty - Every Individual Applies Risk Management
Process to Activities.
For Training Purpose Only 59
60. OperatiOnal risk ManageMent
CAP APPROACH :
‘CAP’ Collect Data, Analyze, Prevent.
• Top-Down Approach
• Strong Senior Leader Backing
• Decentralized Implementation
• Moderate Implementation Tempo
• Safety Lead Role for Cross-Functional
Implementation
For Training Purpose Only 60
61. OperatiOnal risk ManageMent
ORM STRATEGY
Miscellaneous Initiatives
• Automated “Tools”
• Doctrine Integration
• Crosstell
• NEWS Release(s)
• Video(s)
For Training Purpose Only 61
62. OperatiOnal risk ManageMent
The leader’s role will be
a decisive factor in the
success or failure of
ORM
For Training Purpose Only 62
63. OperatiOnal risk ManageMent
ORM Leadership Opportunities
1. Commit to Breakthrough Improvement
Objectives:
Put improvement of risk performance (control-
opportunity) on a competitive level with other
important mission concerns.
2. Set Goals & Objectives
Objectives:
Establish periodic ORM performance and
programmatic goals.
For Training Purpose Only 63
64. OperatiOnal risk ManageMent
ORM Leadership Opportunities Continued
3. Set a Personal Example
Objectives: To assure credibility of the ORM process
through personal behavior.
4. Build an Aggressive Opportunity Mindset in
the Organization
Objectives: Create an organization as conscious of
the opportunity aspects of ORM as it is the risk
reduction
For Training Purpose Only 64
65. OperatiOnal risk ManageMent
ORM Leadership Opportunities Continued
5. Induce Loss Control Community Functional
Integration
Objectives: Build increasing cooperation and
integration of the loss control community
6. Establish an ORM Management Structure
Objectives: Provide the necessary leadership and
staff resources to adequately guide the ORM
process
For Training Purpose Only 65
66. OperatiOnal risk ManageMent
ORM Leadership Opportunities Continued
7. Resource ORM Activities
Objectives: Allocate resources to ORM (control-
opportunity) at a level it can competitively justify.
8. Heat Shield Subordinates
Objectives: Protect subordinates who have taken
prudent, mission supportive risks, but
experienced severe losses, from negative
consequences.
For Training Purpose Only 66
67. OperatiOnal risk ManageMent
ORM Leadership Opportunities Continued
9. Detect & Correct Gambling
Objectives: Develop an organization in which risk
“gambling” is deterred even when the gambler
“wins”.
10. Use the Power of Question
Objectives: Use pointed ORM questions to induce
ORM activity and culture change.
For Training Purpose Only 67
68. OperatiOnal risk ManageMent
ORM Leadership Opportunities (Continued)
11. Regularly Monitor ORM Progress
Objectives: Periodically assess a set of data that
effectively monitors organization ORM status
12. Exploit the ORM Value of Major Mishap
Reviews
Objectives: Consistently induce consideration of the
ORM implications of mishaps
For Training Purpose Only 68
KEY POINTS : * Understanding the pyramid: - Left side is risk reduction. - Right side is opportunity-risk. * ORM will significantly alter the traditional distribution of effort. More impact on the right side, more emphasis on prevent (performance) rather than simply compliance. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________
KEY POINTS : * Understanding the pyramid: - Left side is risk reduction. - Right side is opportunity-risk. * ORM will significantly alter the traditional distribution of effort. More impact on the right side, more emphasis on prevent (performance) rather than simply compliance. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________
KEY POINTS : * By understanding these key ideas, you understand the basis of ORM. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
KEY POINTS : * In our discussion of step four - Make Control Decisions, we will outline the procedures for building effective risk control decisions systems in your organization. These systems resolve these various factors into a consistent routine process. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________
KEY POINTS : * In the late 1960’s, the USAF failed to take the risks associated with realistic air-to-air combat. As a result, the kill ratio with the NV Air Force reached nearly 1 to 1. The risks were taken when Red Flag was developed. - Result: The kill ratio quickly increased to a favorable 10 to 1 or more. ORM can assure that we never make a similar mistake. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________ _______________________________________________________________
2-21
KEY POINTS : * ORM is a systems based concept. This means that ORM users understand that operational mistakes and errors have their origin in the design of the system (man, machine, media, management) and that mission success depends on overall system effectiveness. * We will refer to this model at several points in the six step process. It is a key concept of ORM. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________
KEY POINTS : * This model illustrates the overall process. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
We’ll cover system safety. Notice the similarities to ORM. It is in fact the predecessor of ORM - many of the gurus of ORM got their start in system safety. AFMC has identified it’s system safety guys as the point men for ORM Why we need it - mishaps, cost vs. benefit, If we keep doing what we’ve been doing we’ll keep getting what we’ve got. There will be some burps in the statistics but overall things won’t change much. A little how it works - again similar in many ways to ORM Where are we going? What are the obstacles in our path? Summary Very briefly - how do you use it?
KEY POINTS : * It is these characteristics that are key to the potential of ORM to reduce risk levels up to 90% below current levels. STUDENT NOTES: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________