RISK MANAGEMENT AWARENESS PRESENTATION-DIT

1. Introduction to Risk Management
(Theory & Practice)
Event: RISK MANAGEMENT AWARENESS TRAINING
Presenter: Francis Ngowi, Msc. Economics and Finance for Development,
B.A. in Economics
Venue: Kibaha
Date: 19th May, 2025
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2. Coordinated activities to direct and control an
organization with regard to risk-ISO 31000:2018
It is a process to:
• Identify all relevant risks
• Assess / rank those risks
• Address the risks in order of priority
• Document risks
• Monitor risks & report on their management
Definition of Risk ;risk is defined as the effect of uncertainty on objectives- ISO 31000:2018
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What is Risk Management?

3. • A risk is an uncertain event which may occur in the
future
• A risk may prevent or delay the achievement of an
organization’s or units objectives or goals
• A risk is not certain – Its likelihood can only be
estimated
Opportunities - a risk that may HELP in the achievement
of objectives
Note: Not all risk is bad, some level of risk must be
taken in order to progress / prevent stagnation.
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What is Risk?

4. Principles of Risk Management
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ISO 31000:2018

5. Risk Management Framework-RMF
RMF-Set of components that provide the foundations
and organizational arrangements for integrating,
designing, implementing, evaluating and improving
risk management across the entity”.-ISO 31000:2018
• Risk Management Guideline- ISO 31000:2018-Global
Standards for RM to any organization.
• IAG- Guideline for implementing risk management to
Public Sector Entities (AIG-PSE Guideline July 2023-
Provide practical guidance to PSEs.
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6. Components of Risk Management Framework
• i. Risk Management Policy and
procedures
ii. Risk Management Annual
Implementation Plan
iii. Risk Register
iv. Risk Mitigation Action Plan
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7. i. Government & Public sector entities
• “Precautionary principle” in Governments [due public element in
every decision].
• Risk = any event with potential to inhibit Govt to execute its
mandate or jeopardize reputation/ image.
ii. Compliance
• Treasury Circular No. 12 (2012/13) - 2023
• Government Guidelines for Risk/ Fraud (2012)- updated 2023
• CAG Audit queries
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Requirements for risk management

8. • Reliable basis for decision making and planning
• Achievement of DIT objectives and performance targets
• Minimize operational surprises and shocks and other costly
and time-consuming litigation and/or unexpected losses
• Management will grasp new opportunities in a timely manner
• Compliance with relevant legal and regulatory requirements
and international norms
• Improve stakeholders’ confidence and trust
• Effective use of resources and promotes continual
improvement.
How does Risk Management help?

9. 9
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The ISO 31000 risk
management process is
a structured framework
for identifying,
analyzing, evaluating,
treating, monitoring,
and communicating
risks in an organization.
ISO 31000 Risk Management Process

10. Risk Identification – what are the threats and
uncertainties associated with my organization’s or
units objectives?
• Separate out the risk into its cause & possible effect
• Be concise & clear
• Do not concentrate on symptoms only
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Risk Management Process

11. • Assess the risk’s
Impact
Likelihood
• Prioritize the risks (High, Medium, Low)
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Risk Management Process Cont.

12. Take Action!
For serious risks where controls are
A) Weak
B) Absent
i. For risks where the Risk Appetite is exceeded
ii. Examine Cost vs. Benefit
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Risk Management Process Cont.

13. Types of Action
a) Tolerate
b) Treat
c) Substitute
d) Terminate
e) Transfer
(The choice of the above will be decided upon by
your risk appetite) 13
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Risk Management Process Cont.

14. Monitor & Report
• Use a standard format for capturing risk data e.g.
a “Risk Register”
• Review all risks at least annually
• Serious risks to be reviewed more often depending
on circumstances
• Report on risk to senior management / Board
• Make Risk Register available to stakeholders to
show good governance 14
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Risk Management Process Cont.

15. Categories of Risks
Financial
• Failure to safeguard assets
• Poor cash flow management
• Lack of value for money
• Fraud / theft
• Poor budgeting
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Risk Management Process

16. Operational
• These risks result from failed or inappropriate policies,
procedures, systems or activities e.g.
• Failure of an IT system
• Poor quality of services delivered
• Lack of succession planning
• Health & Safety risks
• Staff skill levels
• No process to track contractual
commitments/improvement
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Categories of Risks Cont.

17. Reputational
Organization engages in activities that could threaten it’s
good name
• Through association with other bodies
• Staff / members acting in a criminal or unethical way
• Poor stakeholder relations
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Categories of Risks Cont.

18. Governance & Compliance
• Lack of oversight by Board
• Segregation of duties not defined formally
• Ensuring compliance with contracts/MOU terms
and conditions
• Compliance with applicable legislation
Taxation Law
Data Protection
Health & Safety Law 18
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Categories of Risks Cont.

19. Involve all levels of staff & management in the
process
Controls are relevant & effective
Ensure risk owner takes responsibility for
management of risks under their control
Focus on risk cause, not its symptoms
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Tips for Success

20. Embedding risk management
When FULLY-EMBEDDED there will be:
i. A RISK MGT FRAMEWORK/ POLICY that is sponsored by the
PS/Board/Council
ii. People buy- in (deal with culture and change mgmt. issues)
iii. Responsibilities assigned (Chief Risk Officer/Coordinator, Champions
etc.)
iv. Risk assessment conducted to create a RISK REGISTER
v. MITIGATIONS measures are proposed/planned and IMPLEMENTED
vi. Risk mgmt. REPORTS are prepared (quarterly) and acted upon
vii. Continuous review and improvement (annual review).
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21. Limitations of scope
Lack of top management support
Did not engage all stakeholders
Failure to share information
RM not embedded within planning & management system
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Why Risk Management May Fail

22. Thank You
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