This presentation summarizes the key aspects of risk management. It introduces common risk management terms and frameworks. The importance of risk management is to encourage proactive management, improve decision making, and ensure compliance. Effective risk management requires establishing roles and processes, identifying risks, analyzing and evaluating them, and continually monitoring and improving the system. The risk management process involves setting the context, assessing risks via identification, analysis, evaluation, and treatment, and communication throughout the process.

1. QEMS PRESENTATION ON RISK
MANAGEMENT
Presented by: Onwuneme Shimonkepha
Date: 26th September, 2018
Venue: Base 6 Conference Hall
NOTE: Some terms, definitions, designs are
from ISO 31000:2009

2. CONTENT
• Introduction
• Importance of Risk Management
• Different Forms of Risk Management
• Types of Risks
• Things to put in Place for Successful Risk Management
• Risk Management Framework
• Risk Management Process
• Next Step

3. Introduction
RISK: effect of uncertainty on objectives. The likelihood of occurrence of an event and the
consequences/effect thereof.
RISK MANAGEMENT: coordinated activities to direct and control an organization with regard to
risk.
RISK MANAGEMENT FRAMEWORK
set of components that provide the foundations and organizational arrangements for
designing, implementing, monitoring, reviewing and continually improving risk management
throughout the organization (the policy, objectives, mandate and commitment to manage risk)
Risk management has become a critical part of all other Standards!

4. Importance of Risk
Management
 encourage proactive management;
 improve the identification of opportunities and threats, taking advantage of opportunities and minimizing losses
resulting from threats
 comply with relevant legal and regulatory requirements and international norms including ISO 9001:2015;
 improve corporate and organization-wide governance;
 improve stakeholder confidence and trust;
 establish a reliable basis for decision making and planning;
 improve operational effectiveness and efficiency;
 enhance health and safety performance, as well as environmental protection;
 improve loss prevention and incident management;
 ensure organizational sustainability and development

5. Forms of Risk Management
• Hazard and Operability (HAZOP)
• HAZID (Hazard Identification)
• FMEA (Failure Mode and Effect Analysis)
• JHA
• Fault Tree Analysis (FTA)
• Etc.

6. Types of Risk
• Internal/External
• Strategic/Functional(Operational)/Projectized
• Threats/Opportunities
• High/Medium/Low
• Natural/Unnatural
• Etc.

7. Things to put in Place for Successful Risk Management
RISK
MANAGEMENT
PROCESS
RISK
MANAGEMENT
FRAMEWORK

8. RISK MANAGEMENT FRAMEWORK
• Risk management policy/ commitment statement
• Roles and responsibilities/ Risk ownership
• Integrating risk management into existing organizational processes
• Resources for Risk management
• Risk Management Key Performance Measures and Indicators (Thresholds)
• Monitoring and review processes
• Continual Improvement processes

9. Risk Management Process
Context for risk management and risk categories (PESTLE)
Risk criteria (terms of reference against which the significance of a risk is
evaluated, states threshold for risks)
Risk Assessment (next slide)
Communication (Risk Registers, meetings, etc.)

10. RISK ASSESSMENT
Risk Monitoring
Monitor and review the effectiveness of
controls. Assess whether the nature of risk
has changed
Risk Control/Treatment
Determine how to treat the risk i.e. Accept
the risk or
avoid / reduce / transfer the risk
Risk Analysis & Evaluation
Determine the likelihood and the
consequences in order to estimate the level
of risk
Risk Identification
What can happen?
How can it happen?

11. NEXT STEP
 Management Commitment to Risk Management is the most important!
 Risk management is not one-off, it is continual!