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.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
Risk
Risk management
Risk Management process groups
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Responses
Control Risks
The chance (or probability) that a problem will occur and
The result (or impact) if that problem occurs is known as Risk.
Risk cannot be eliminated, only reduced.
Risks are meant to be taken.
Risk Management Process And Procedures PowerPoint Presentation SlidesSlideTeam
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
The above presentation talks about the risk involved in any project. The project risk identification, quantification, response and its control is also thoroughly explained.
Chapter 12 of ICT Project Management based on IOE Engineering syllabus. Understanding risk, project risk, risk management, qualitative and quantitative risk analysis process etc can be learned from this chapter. Provided By Project Management Sir of KU
An introduction to risk management concepts for future outdoor leaders. It serves up metaphors and poses suitable questions for other forms of risk management.
Quality Risk management in pharmaceutical Industry. A general Review on Risk analysis and Risk assessment in pharmaceutical Industry as it is prescribed by GMP regulations of WHO, ICH, FDA.
Risk
Risk management
Risk Management process groups
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Responses
Control Risks
The chance (or probability) that a problem will occur and
The result (or impact) if that problem occurs is known as Risk.
Risk cannot be eliminated, only reduced.
Risks are meant to be taken.
Risk Management Process And Procedures PowerPoint Presentation SlidesSlideTeam
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
The above presentation talks about the risk involved in any project. The project risk identification, quantification, response and its control is also thoroughly explained.
Chapter 12 of ICT Project Management based on IOE Engineering syllabus. Understanding risk, project risk, risk management, qualitative and quantitative risk analysis process etc can be learned from this chapter. Provided By Project Management Sir of KU
An introduction to risk management concepts for future outdoor leaders. It serves up metaphors and poses suitable questions for other forms of risk management.
Quality Risk management in pharmaceutical Industry. A general Review on Risk analysis and Risk assessment in pharmaceutical Industry as it is prescribed by GMP regulations of WHO, ICH, FDA.
Risk Management Strategy is an approach to dealing with global risks focused to anticipate the events, designing and implementing procedures to minimize the occurrence of the event or its impact if it occurs.
In era of globalization and interconnected world the task to protect the company from global risks became complicated. Any kind of internally or externally risk can cause distortion to its usual business activities. The source of potential risk can be human being, technology failure, sabotage or Mother Nature. All the risks must be considered individually since they overlap to a large degree. Then our Global Risk Management consulting focuses on: terrorism, internal sabotage, external espionage, technology failure.
Various steps of risk assessment. md. anwar ibrahim mirazMDAnwarIbrahimMiraz
The aim of the risk assessment process is to evaluate hazards, then remove that hazard or minimize the level of its risk by adding control measures, as necessary. By doing so, you have created a safer and healthier workplace.
Critical role of_risk_assessment_in_international_projects_enVyacheslav Guzovsky
Risk is usually applied to negative events, things that might go wrong. Hopefully there are things that we can do, systems that we can put into place that will prevent bad things from happening, or at least if bad things happen, will minimize the likelihood of it being a total catastrophe. Some of these things are obvious, some of them are not so obvious and might sound like common sense, but there is a lot of science to back this up. This science is called risk management. It is a whole profession and may take you a few years to get there. The good news is it is a gradual process, and all we need to know is that it can be a handy tool for our trade and achievable by changing our working habits.
Mastering Information Technology Risk ManagementGoutama Bachtiar
This is the presentation slide as part of the courseware utilized when delivering Information Technology Risk Management training - workshop on May 2013.
MODULE 1:
Definition of Risk and uncertainty- Classification of Risk, Sources of Risk-external and internal. Risk Management-nature, risk analysis, planning, control and transfer of risk, Administration of properties of an enterprise, provision of adequate security arrangements. Interface between Risk and Insurance- Risk identification, evaluation and management techniques, Risk avoidance, Retention and transfer, Selecti9on and implementation of Techniques. Various terminology, perils, clauses and risk covers.
3. RiskRisk
• Risk is a concept that denotes a potential
negative impact to an asset or some
characteristic of value that may arise from
some present process or future event.
• In everyday usage, "risk" is often used
synonymously with the probability of a known
loss. Paradoxically, a probable loss can be
uncertain and relative in an individual event
while having a certainty in the aggregate of
multiple events
4. Risk Analysis can refer to:
• Risk analysis (engineering)
• Risk analysis (Business)
‘Risk analysis’ is employed in its broadest
sense to include:
Risk Assessment
Risk management
Risk communication
Risk Analysis = Risk Assessment + Risk
Management + Risk Communication.
5. Risk Assessment
• Involves identifying sources of potential harm, assessing the
likelihood that harm will occur and the consequences if harm does
occur.
• Risk assessment is a step in the risk management process. Risk
assessment is measuring two quantities of the risk R, the
magnitude of the potential loss L, and the probability p that the
loss will occur.
Risk communication
• Involves an interactive dialogue between stakeholders and risk
assessors and risk managers which actively informs the other
processes.
Risk management
• Evaluates which risks identified in the risk assessment process
require management and selects and implements the plans or
actions that are required to ensure that those risks are controlled.
6. Risk Management
• Risk management is the human activity, which integrates recognition
of risk, risk assessment, developing strategies to manage it, and
mitigation of risk using managerial resources.
Objective of risk management
• To reduce different risks related to a pre-selected domain to the level
accepted by society.
Strategies
• Transferring the risk to another party
• Avoiding the risk,
• Reducing the negative effect of the risk
• Accepting some or all of the consequences of a particular risk.
• Some traditional risk managements are focused on risks stemming
from physical or legal causes (e.g. natural disasters or fires,
accidents, death and lawsuits). Financial risk management, on the
other hand, focuses on risks that can be managed using traded
financial instruments.
7. Major Causes of Risk
• By environment/Natural
• Technology
• Humans
8. General Approch to Handle Risk
• In ideal risk management, a prioritization process is followed whereby
the risks with the greatest loss and the greatest probability of occurring
are handled first, and risks with lower probability of occurrence and
lower loss are handled in descending order. In practice the process can
be very difficult, and balancing between risks with a high probability of
occurrence but lower loss versus a risk with high loss but lower
probability of occurrence can often be mishandled.
• Intangible risk management identifies a new type of risk - a risk that has
a 100% probability of occurring but is ignored by the organization due to
a lack of identification ability. For example, when deficient knowledge is
applied to a situation, a knowledge risk materialises. Relationship risk
appears when ineffective collaboration occurs. Process-engagement
risk may be an issue when ineffective operational procedures are
applied. These risks directly reduce the productivity of knowledge
workers, decrease cost effectiveness, profitability, service, quality,
reputation, brand value, and earnings quality. Intangible risk
management allows risk management to create immediate value from
the identification and reduction of risks that reduce productivity.
9. • Identification of risk in a selected domain of interest
• Risks will be evaluated, constraints.
• Developing an analysis of risks involved in the
process.
• Mitigation of risks using available technological,
human and organizational resources.
The PDCA Steps to establish effective RiskThe PDCA Steps to establish effective Risk
Management ProcessManagement Process
1. Plan:1. Plan:
10. Identification
• Source analysis :
Risk sources may be internal or external to the
system that is the target of risk management.
Examples of risk sources are: stakeholders of a
project, employees of a company or the weather over
an airport.
• Problem analysis:
Risks are related to identified threats. For example:
the threat of losing money, the threat of abuse of
privacy information or the threat of accidents and
casualties. The threats may exist with various
entities, most important with shareholders,
customers and legislative bodies such as the
government.
11. Assessment
• Once risks have been identified, they must then
be assessed as to their potential severity of loss
and to the probability of occurrence. These
quantities can be either simple to measure, in
the case of the value of a lost building, or
impossible to know for sure in the case of the
probability of an unlikely event occurring.
Therefore, in the assessment process it is
critical to make the best educated guesses
possible in order to properly prioritize the
implementation of the risk management plan.
Risk = Rate of occurrence X impact of the eventRisk = Rate of occurrence X impact of the event
12. Once risks have been identified and assessed, all
techniques to manage the risk fall into one or more
of these four major categories: (Dorfman, 1997)
(remember as 4 T's)
• Tolerate (retention)
• Treat (mitigation)
• Terminate (elimination)
• Transfer (buying insurance)
Potential Risk Treatments/TechniquesPotential Risk Treatments/Techniques
13. • Follow all of the planned methods for
mitigating the effect of the risks.
Purchase insurance policies for the risks
that have been decided to be transferred
to an insurer, avoid all risks that can be
avoided without sacrificing the entity's
goals, reduce others, and retain the rest.
2. Do:2. Do:
Implement a Test of the Chosen RiskImplement a Test of the Chosen Risk
Mangement TechniqueMangement Technique
14. • To evaluate whether the previously
selected techniques are still applicable
and effective, and
• To evaluate the possible risk level
changes in the business environment.
3. Check:3. Check:
Assess the effectiveness of theAssess the effectiveness of the technique,technique,
and make necessary adjustments or selectand make necessary adjustments or select
alternative.alternative.
15. 4. Act:4. Act:
Implement the full processImplement the full process
5.5. ImproveImprove::
Improve the Implemented Techniques,Improve the Implemented Techniques, ReturnReturn toto
Plan Step.Plan Step.
16. • If risks are improperly assessed and prioritized, time can be
wasted in dealing with risk of losses that are not likely to occur.
Spending too much time assessing and managing unlikely risks
can divert resources that could be used more profitably. Unlikely
events do occur but if the risk is unlikely enough to occur it may
be better to simply retain the risk and deal with the result if the
loss does in fact occur.
• Prioritizing too highly the risk management processes could
keep an organization from ever completing a project or even
getting started. This is especially true if other work is suspended
until the risk management process is considered complete.
• It is also important to keep in mind the distinction between risk
and uncertainty. Risk can be measured by impacts x probability. .
LimitationsLimitations
17. • Crockford, Neil (1986). An Introduction to Risk Management (2nd
ed.). Woodhead-Faulkner. 0-85941-332-2.
• http://en.wikipedia.org/wiki/Risk_management
ReferenceReference