The document discusses principles of risk and risk management. It defines risk as the combination of the likelihood and impact of an uncertain event. Risk management aims to improve the future by anticipating and managing risks. The document outlines key concepts like types of risk, risk standards, and enterprise risk management (ERM). ERM takes a top-down approach to identify, assess, and mitigate risks across an organization. Implementing ERM involves defining risk strategies, assigning responsibilities, and continually monitoring and adapting to changes.
Abstract: Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death). Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Objective of risk management is to reduce different risks related to a pre-selected domain to an acceptable. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. The paper describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management.
How to embed emerging risk identification and management IRMindia AffiliateIRM India Affiliate
The Institute of Risk Management (IRM) is the leading professional body for Enterprise Risk Management
(ERM). We drive excellence in managing risk to ensure organisations are ready for the opportunities
and threats of the future. We do this by providing internationally recognised qualifications and training,
publishing research and guidance, and setting professional standards.
For over 30 years our qualifications have been the global choice of qualification for risk professionals and
their employers. We are a not-for-profit body, with members working in all industries, in all risk disciplines and
all sectors around the world. In 2019, the IRM welcomed the Institute of Operational Risk (IOR) into the IRM
group. www.theirm.org
We hope that you have read the first and second guides An Introduction to Identifying Emerging Risks, and
How to assess and treat Emerging Risks. These publications help you to identify and tackle potential risks
that may impact your organisation’s strategic objectives should they occur. In part one of this publication,
we offer tools and techniques to take that work and embed it within your organisation, with part two
providing ideas on how to tackle the leadership conversation about emerging risk management.
Abstract: Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death). Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Objective of risk management is to reduce different risks related to a pre-selected domain to an acceptable. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. The paper describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management.
How to embed emerging risk identification and management IRMindia AffiliateIRM India Affiliate
The Institute of Risk Management (IRM) is the leading professional body for Enterprise Risk Management
(ERM). We drive excellence in managing risk to ensure organisations are ready for the opportunities
and threats of the future. We do this by providing internationally recognised qualifications and training,
publishing research and guidance, and setting professional standards.
For over 30 years our qualifications have been the global choice of qualification for risk professionals and
their employers. We are a not-for-profit body, with members working in all industries, in all risk disciplines and
all sectors around the world. In 2019, the IRM welcomed the Institute of Operational Risk (IOR) into the IRM
group. www.theirm.org
We hope that you have read the first and second guides An Introduction to Identifying Emerging Risks, and
How to assess and treat Emerging Risks. These publications help you to identify and tackle potential risks
that may impact your organisation’s strategic objectives should they occur. In part one of this publication,
we offer tools and techniques to take that work and embed it within your organisation, with part two
providing ideas on how to tackle the leadership conversation about emerging risk management.
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.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters
Risks which are not capable of avoidance, prevention, reduction to a large extent or assumption may be transferred from one party to the other party. The basic objective of insurance is to transfer the risk of a person to the insurance company which has easily spread it over a large number of persons insuring similar risks. As such, for handling risks which involve large financial losses or which are dangerous, insurance is a means of shifting such risks in consideration of a nominal cost called premium.
Abstract
Key Features
Assessment
Introduction
Measures
Figure 1. This is the Risk Assessment Matrix Chart on the basis of the overall scenario
(continued)
Discussion
Figure1. The overall scenario of Risk management analysis on basis of survey and guidelines :
Safety of Risk Management
Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death).
Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Objective of risk management is to reduce different risks related to a pre-selected domain to an acceptable. It may refer to numerous types of threats caused by environment, technology, humans,
organizations and politics. The paper describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management.
The risk management steps are:
1. Establishing goals and context ,
2. Identifying risks,
3. Analysing the identified risks,
4. Assessing or evaluating the risks,
5. Treating or managing the risks,
6. Monitoring and reviewing the risks and the risk environment regularly, and
7. Continuously communicating, consulting with stakeholders and reporting.
Some of the risk management tools are described in (IEC 2008) and (Oehmen 2005).
As per discussed about the overall visualisation of safety risk management we can conclude by the stated figure about the outcome of the risk factor in different zone or field of work .
The common concept in all definitions is uncertainty of outcomes. Where they differ is in how they characterize outcomes. Some describe risk as having only adverse consequences, while others are neutral.
One description of risk is the following: risk refers to the uncertainty that surrounds future events and outcomes. It is the expression of the likelihood and impact of an event with the potential to influence the achievement of an organization's objectives.
The phrase "the expression of the likelihood and impact of an event" implies that, as a minimum, some form of quantitative or qualitative analysis is required for making decisions
concerning major risks or threats to the achievement of an organization's objectives. For each risk, two calculations are required: its likelihood or probability; and the extent of the impact or consequences.
Establish goals and context:- The purpose of this stage of planning enables to understand the environment in which the
respective organization operates, that means to thoroughly understand the external environment and the internal culture of the organization.
Identify the risks :- Using the information gained from the context, particularly as cat.
BM7037-15: Corporate Governance,
Ethics & Risk Management
Risk Management
(There are internet links in this presentation that you should explore.)
Learning outcomes
At the end of the lecture, you’ll be able to:
Critically define ‘risk’ and distinguish it from other things
Critically explore a given organisation’s risk appetite
Evaluate an organisation’s risk management processes against best practice
Critically explore interrelationships between risk management and corporate governance
What is risk?
“Uncertainty of outcome, whether positive opportunity or negative threat, of actions and events”
(HM Treasury, ‘The Orange Book’, 2004, p.9)
“An uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives.”
(PRINCE2 2017, p.120)
“An unrealised future loss arising from a present action or inaction”
(Kaplan)
1️⃣
3
What is risk?
Is:
Uncertain – not, then, known (known as ‘dis-benefits’ in PRINCE2)
Uncertain – in that we might never realise it as a risk! (Particularly if we don’t even try)
Uncertain – and we might try to measure its probability
Impactful – whether that’s minimal, moderate, or severe
Impactful – in one or several respects: Strategic, operational, etc.
Possibly beneficial, known as ‘upside risk’ (if we ignore Kaplan def.)
As it can be terminal (think Carillion; also here) but can also give a competitive advantage, it should not be overlooked by management.
4
Risk ‘appetite’
You go to a casino. Would you rather:
Wager £10 to possibly win £100?
or
Wager £100 to possibly win £10,000?
or
Do neither, and keep your money?
2️⃣
5
Risk ‘appetite’
Investments often are expressed in terms of risk-reward
Organisations are also on this risk-seeking to risk-adverse continuum.
6
Risk ‘appetite’
All organisations have a risk appetite, however:
They may not be consciously aware of it
It may not be expressed/articulated anywhere
It may not be known across the organisation
It may not inform decision-making (consistently, across the organisation)
See COSO Report (2014)
7
Risk ‘appetite’
Q
Try to think of 2 types of firm:
One which is high-risk-taking and one which is low-risk-taking.
Why do they take this approach?
8
Risk management
There are lots of risk management models. They all broadly include the same elements:
Risk…
Identification
Assessment (probability/impact)
Planning (responses)
Monitoring (responsibilities)
This process is cyclical.
Risk-related activities should be recorded, including lessons.
3️⃣
9
Risk management: 1/4 Identification
‘Risk workshop’: Brainstorming.
Also: Previous lessons, checklists, prompt-lists, breakdown structures
External auditing can help – a fresh view
(Can be compulsory; think SOX)
10
Risk management: 1/4 Identification
Risks can be classified:
Business or operational: relating to activities carried out within an entity, arising from structure, systems, people, products or proce ...
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
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.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters
Risks which are not capable of avoidance, prevention, reduction to a large extent or assumption may be transferred from one party to the other party. The basic objective of insurance is to transfer the risk of a person to the insurance company which has easily spread it over a large number of persons insuring similar risks. As such, for handling risks which involve large financial losses or which are dangerous, insurance is a means of shifting such risks in consideration of a nominal cost called premium.
Abstract
Key Features
Assessment
Introduction
Measures
Figure 1. This is the Risk Assessment Matrix Chart on the basis of the overall scenario
(continued)
Discussion
Figure1. The overall scenario of Risk management analysis on basis of survey and guidelines :
Safety of Risk Management
Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death).
Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Objective of risk management is to reduce different risks related to a pre-selected domain to an acceptable. It may refer to numerous types of threats caused by environment, technology, humans,
organizations and politics. The paper describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management.
The risk management steps are:
1. Establishing goals and context ,
2. Identifying risks,
3. Analysing the identified risks,
4. Assessing or evaluating the risks,
5. Treating or managing the risks,
6. Monitoring and reviewing the risks and the risk environment regularly, and
7. Continuously communicating, consulting with stakeholders and reporting.
Some of the risk management tools are described in (IEC 2008) and (Oehmen 2005).
As per discussed about the overall visualisation of safety risk management we can conclude by the stated figure about the outcome of the risk factor in different zone or field of work .
The common concept in all definitions is uncertainty of outcomes. Where they differ is in how they characterize outcomes. Some describe risk as having only adverse consequences, while others are neutral.
One description of risk is the following: risk refers to the uncertainty that surrounds future events and outcomes. It is the expression of the likelihood and impact of an event with the potential to influence the achievement of an organization's objectives.
The phrase "the expression of the likelihood and impact of an event" implies that, as a minimum, some form of quantitative or qualitative analysis is required for making decisions
concerning major risks or threats to the achievement of an organization's objectives. For each risk, two calculations are required: its likelihood or probability; and the extent of the impact or consequences.
Establish goals and context:- The purpose of this stage of planning enables to understand the environment in which the
respective organization operates, that means to thoroughly understand the external environment and the internal culture of the organization.
Identify the risks :- Using the information gained from the context, particularly as cat.
BM7037-15: Corporate Governance,
Ethics & Risk Management
Risk Management
(There are internet links in this presentation that you should explore.)
Learning outcomes
At the end of the lecture, you’ll be able to:
Critically define ‘risk’ and distinguish it from other things
Critically explore a given organisation’s risk appetite
Evaluate an organisation’s risk management processes against best practice
Critically explore interrelationships between risk management and corporate governance
What is risk?
“Uncertainty of outcome, whether positive opportunity or negative threat, of actions and events”
(HM Treasury, ‘The Orange Book’, 2004, p.9)
“An uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives.”
(PRINCE2 2017, p.120)
“An unrealised future loss arising from a present action or inaction”
(Kaplan)
1️⃣
3
What is risk?
Is:
Uncertain – not, then, known (known as ‘dis-benefits’ in PRINCE2)
Uncertain – in that we might never realise it as a risk! (Particularly if we don’t even try)
Uncertain – and we might try to measure its probability
Impactful – whether that’s minimal, moderate, or severe
Impactful – in one or several respects: Strategic, operational, etc.
Possibly beneficial, known as ‘upside risk’ (if we ignore Kaplan def.)
As it can be terminal (think Carillion; also here) but can also give a competitive advantage, it should not be overlooked by management.
4
Risk ‘appetite’
You go to a casino. Would you rather:
Wager £10 to possibly win £100?
or
Wager £100 to possibly win £10,000?
or
Do neither, and keep your money?
2️⃣
5
Risk ‘appetite’
Investments often are expressed in terms of risk-reward
Organisations are also on this risk-seeking to risk-adverse continuum.
6
Risk ‘appetite’
All organisations have a risk appetite, however:
They may not be consciously aware of it
It may not be expressed/articulated anywhere
It may not be known across the organisation
It may not inform decision-making (consistently, across the organisation)
See COSO Report (2014)
7
Risk ‘appetite’
Q
Try to think of 2 types of firm:
One which is high-risk-taking and one which is low-risk-taking.
Why do they take this approach?
8
Risk management
There are lots of risk management models. They all broadly include the same elements:
Risk…
Identification
Assessment (probability/impact)
Planning (responses)
Monitoring (responsibilities)
This process is cyclical.
Risk-related activities should be recorded, including lessons.
3️⃣
9
Risk management: 1/4 Identification
‘Risk workshop’: Brainstorming.
Also: Previous lessons, checklists, prompt-lists, breakdown structures
External auditing can help – a fresh view
(Can be compulsory; think SOX)
10
Risk management: 1/4 Identification
Risks can be classified:
Business or operational: relating to activities carried out within an entity, arising from structure, systems, people, products or proce ...
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
2. LEARNING OBJECTIVES:
1. Discuss the concepts and definitions of
risk and risk management
2. Describe the general and alternative
risk management standards
3. Explain enterprise risk management
(ERM)
4. Analyze risk management situations
and give insights on whether they were
properly managed or not
3. According to Andrew Jaquith, “The
purpose of risk management is to
improve the future, not to explain the
past.” And that “The key to risk
management is never putting yourself
in a position where you cannot live to
fight another day”, according to
Richard S. Fuld, Jr.
5. A. Concepts and definitions of risk
and risk management
1. Risk defined
2. Impact of risk on organizations
3. Introduction to types of risk
4. Definitions and development of
risk management
5. Principles and aims of risk
management.
6. 1. Risk defined
A risk is a danger, or
the possibility of danger, defeat,
or loss. It could also be someone or
something that
could cause a problem or loss..
7. Risk defined
According to Information Security Risk
Management, "Risk is the combination of
the risk of exposure and the impact =
combination of likelihood of the threat
being able to expose an element(s) of
the system and impact".
8. Risk defined
Another definition by Managing Successful
Programmes is that “Risk is an uncertain event
or set of events which, should it occur, will have
an effect on the achievement of objectives; a
risk is measured by a combination of the
probability of a perceived threat or opportunity
occurring and the magnitude of its impact on
objectives.”
9. The important thing to
remember is that risks are part of
daily lives, but these can be
managed and may be avoided
through preemptive actions.
10. 2. Impact of risk on organizations
Risk impact is an estimate of the
potential losses associated with identified
risk. It is a standard risk analysis to
develop and estimate probability or
impact. The following are common types
of impact.
11. HIGH or SIGNIFICANT level risks require
escalation and thorough risk analysis. Extra risk
control mechanisms need to be put in place,
and risk treatment measures clearly identified,
budgeted, and implemented; frequent
monitoring; and necessary precautions to
ensure staff and personnel safety and security
are not compromised and opportunities are not
missed.
12. Both SUBSTANTIAL and MODERATE level
risks require risk analysis scaled to the scope
and nature of the risks with risk treatment and
monitoring measures in place and budgeted.
SUBSTANTIAL risks require more detailed risk
analysis and risk management plans.
LOW level risks do not require further analysis
or treatment.
13.
14. 3. Introduction to types of risk
The following are also types of risks that can be
applicable in the school organizations and
businesses.
Political/Regulatory Risk – The impact of
political decisions and changes in regulation
Financial Risk – The capital structure of a
company (degree of financial leverage or
debt burden)
Interest Rate Risk – The impact of changing
interest rates
15. 3. Introduction to types of risk
Country Risk – Uncertainties that are specific to
a country
Social Risk – The impact of changes in social
norms, movements, and unrest
Environmental Risk – Uncertainty about
environmental liabilities or the impact of changes
in the environment
Operational Risk – Uncertainty about a
company’s operations, including its supply chain
and the delivery of its products or services
16. 3. Introduction to types of risk
Management Risk – The impact that the decisions of
a management team have on a company
Legal Risk – Uncertainty related to lawsuits or the
freedom to operate
Competition – The degree of competition in an
industry and the impact choices of competitors will
have on a company
17. A. Concepts and definitions of risk
and risk management
3. Introduction to types of risk
Management Risk – The impact that the decisions of
a management team have on a company
Legal Risk – Uncertainty related to lawsuits or the
freedom to operate
Competition – The degree of competition in an
industry and the impact choices of competitors will
have on a company
19. 4. Definitions and development of risk
management
Risk management is the process of identifying,
assessing, and controlling financial, legal,
strategic and security risks to an organization’s
capital and earnings. These threats, or risks,
could stem from a wide variety of sources,
including financial uncertainty, legal liabilities,
strategic management errors, accidents, and
natural disasters.
20. 4. Definitions and development of risk
management
Another definition of risk management is that it is the
process of minimizing or mitigating the risk. It starts with
the identification and evaluation of risk followed by
optimal use of resources to monitor and minimize the
same. Risk management is the process of
anticipating unwelcome events and mitigating their
effects as much as possible. It includes anticipating and
assessing risks, planning around them, monitoring them,
and responding to them when appropriate.
21. 4. Definitions and development of risk
management
To reduce risk, an organization needs to apply
resources to minimize, monitor and control the
impact of negative events while maximizing
positive events. A consistent, systemic, and
integrated approach to risk management can
help determine how best to identify, manage.
and mitigate significant risks.
22. 5. Principles of risk management.
The various principles are:
1. Organizational Context: Every organization
is affected to varying degrees by various
factors in its environment (Political, Social,
Legal, and Technological, Societal etc.)
23. 5. Principles of risk management.
2. Involvement of Stakeholders
24. 5. Principles of risk management.
3. Organizational Objectives: When
dealing with a risk it is important to keep
the organizational objectives in mind.
25. 5. Principles of risk management.
4. Reporting: In risk
management communication is
the key
26. 5. Principles of risk management.
5. Roles and Responsibilities: Risk
Management has to be transparent and
inclusive. It should take into account the
human factors and ensure that each one
knows it roles at each stage of the risk
management process.
27. 5. Principles of risk management.
6. Support Structure: Support structure
underlines the importance of the risk
management team. The team members have to
be dynamic, diligent and responsive to change.
Each and every member should understand his
intervention at each stage of the project
management lifecycle.
28. 5. Principles of risk management.
7. Early Warning Indicators: Keep track
of early signs of a risk translating into an
active problem.
29. 5. Principles of risk management.
8. Review Cycle: Keep evaluating inputs
at each step of the risk management
process
30. 5. Principles of risk management.
9. Supportive Culture: Brainstorm and
enable a culture of questioning,
discussing. This will motivate people to
participate more.
31. 5. Principles of risk management.
10. Continual Improvement: Be capable of
improving and enhancing your risk management
strategies and tactics. Use your learning’s to
access the way you look at and manage
ongoing risk.
32. 5. Aims of Risk management
1. Ensure the optimal, balanced, and
sustainable performance of the company
2. Develop a comprehensive, systematic,
integrated, and flexible approach. Thus
identifying, assessing, analyzing, and
managing risks
3. Develop better risk management
practices
33. 5. Aims of Risk management
4. Address all types of business
risks
5. Take responsible risks
6. Make informed decisions
7. Better manage change
34. THINK-PAIR-SHARE
With a colleague/classmate, identify
possible risks in school. How does the
school manage these risks? Brainstorm how
risk management benefits the school and
the administration. Give concrete examples
of how risk management helps in certain
situations.
35. RISKS IN SCHOOLS
In schools, possible risks include injury of a
student, a lawsuit filed by an angry parent, or
damage to the school's reputation. Unsafe
parts of the school, especially during the
pandemic, and others.
36. RISK MANAGEMENT IN SCHOOL
Risk management is important because it
keeps your students, faculty, and finances
safe from any harm, while also protecting
your financial assets and lowering your legal
liability. Not only will developing a risk
management plan for your school reduce
the chances of risks, but it will also mitigate
the effects of those risks if they should
occur.
37. RISK MANAGEMENT IN SCHOOL
Risk management comes with these benefits for
school administrators:
Protect people from harm.
Limit the possibility of a lawsuit.
Safeguard your public reputation.
Reduce potential losses in revenue.
Make your students, teachers, and parents
feel safe.
38. B. Risk management standards
1. General risk management
standards
2. Alternative risk management
approaches.
39. General risk management standards
ISO (International Organization for Standardization) is a
worldwide federation of national standards bodies.
ISO is a nongovernmental organization that comprises
standards bodies from more than 160 countries, with one
standards body representing each member country. For
example, the American National Standards
Institute represents the United States.
40. General risk management standards
ISO members are national standards
organizations that collaborate in the
development and promotion of international
standards for technology, scientific
testing processes, working conditions, societal
issues and more. ISO and its members then sell
documents detailing these standards
41. General risk management standards
The ISO 31000-2018 standard, Risk Management--
Guidelines, lists the following eight principles for any
solid risk management program.
Integration - An organization should integrate its risk
management efforts into all parts and activities of
the organization.
42. General risk management standards
Integration - An organization should
integrate its risk management efforts
into all parts and activities of the
organization.
43. General risk management standards
Structured and comprehensive - Creating
and following a comprehensive,
structured risk management approach
leads to the most consistent, desirable
risk management outcomes.
44. General risk management standards
Customized - To be most effective, risk
management should involve all stakeholders
in appropriate and timely ways. This allows
the different knowledge sets, views, and
perceptions of all stakeholders to be
considered and implemented into risk
management efforts.
45. General risk management standards
Inclusive
Dynamic - As the organization changes, including its
external and internal context, the organization's risk
management program and efforts should change, too.
Change is inevitable and successful organizations
know how to work with change. A risk management
program should help the organization anticipate,
identify, acknowledge, and respond to changes in an
appropriate and timely way.
46. General risk management standards
Uses best available information - Effective risk
management is done by considering information from
the past and present as well as anticipating the future.
Therefore, (1) the information from the past and
present must be as reliable as possible, and (2) risk
managers must consider the limitations and
uncertainties with that past and present information. All
relevant stakeholders should receive necessary
information in a timely and clear manner.
47. General risk management standards
Considers human and culture factors - Risk
management is a human activity, and it takes place
within one or more culture (organizational culture,
etc.). Risk managers must be aware of the human and
culture factors that the risk management effort takes
place in and know the influence that human and
culture factors will place on the risk management
effort.
48. General risk management standards
Practices continual improvement -
Through experience and learning, risk
managers must strive to continually
improve an organization's risk
management efforts.
50. Alternative risk management
approaches
Under Risk Alternatives’ approach, risk
management is a seven-step process:
IDENTIFY threats and opportunities faced by
the organization.
AVOID engaging in current projects and
activities that would trigger unacceptable
risks.
51. Alternative risk management
approaches
DEVELOP (or EXPLOIT) new initiatives that the
organization thinks may be of strategic value.
REDUCE the likelihood of adverse events posed by
the organization’s ongoing activities by
adopting/changing systems and controls, education
and training, or other mitigation steps.
52. Alternative risk management
approaches
SHIFT (through partnering, changing contract
terms, or purchasing insurance) risks that
cannot be directly mitigated.
ACCEPT the remaining risks, having taken
the reasonable steps outlined above.
53. Alternative risk management
approaches
IMPROVE the process by reviewing the
results and modifying the approach going
forward, so that over time the organization
grows nimbler and more resilient.
54. C. Enterprise Risk Management (ERM
1. Concept of enterprise risk management
What Is ERM and Why Is It Important?
ERM is a company's approach to managing risk. It is
the practices, policies, and framework for how a
company handles a variety of risks its business
faces. ERM is important because it helps prevent
losses or unexpected negative outcomes. ERM is
also important because it helps a company set the
plans in place to strategically approach risk and
garner employee buy-in.
55. Enterprise Risk Management (ERM
- is a methodology that looks at risk
management strategically from the
perspective of the entire firm or organization.
It is a top-down strategy that aims to identify,
assess, and prepare for potential losses,
dangers, hazards, and other potentials for
harm that may interfere with an organization's
operations and objectives and/or lead to
losses.
56. Enterprise Risk Management (ERM
What Are the 3 Types of Enterprise
Risk?
ERM often summaries the risks a company
faces into operational, financial, and strategic
risks. Operational risks impact day-to-day
operations, while strategic risks impact long-
term plans. Financial risks impact the general
financial standing and health of a company.
57. Implementing the Enterprise Risk
Management (ERM
Best practices most companies can use to
implement ERM strategies.
Define risk philosophy. Before
implementing any practices, a company
must identify how it feels about risk and
what its strategy around risk will be. This
should involve strategic discussions
between management and an analysis of a
company's entire risk profile.
58. Implementing the Enterprise Risk
Management (ERM
Create action plans.
Be creative. When considering risks, ERM
entails thinking broadly about the problems
a company may face. Though far-fetched, it
is in a company's best interest to think of as
many challenges it may face and how it will
respond (or decide to not respond) should
the event happen.
59. Implementing the Enterprise Risk
Management (ERM
Communicate priorities. A company may
determine several high-important risks are
critical to mitigate for the continuation of the
company. These priorities should be
communicated and broadly understood as
the risks that should not be incurred under
any circumstance. Alternatively, a company
may wish to communicate the plans if the
event were to occur.
60. Implementing the Enterprise Risk
Management (ERM
Assign responsibilities.
Maintain flexibility. As companies and risks
evolve, a company must design ERM practices to
be adaptable. The risks a company faces one day
may be different the next; the company must be
able to carry its current plan while still making
plans for new, future risks.
61. Implementing the Enterprise Risk
Management (ERM
Leverage technology. ERM digital
platforms may host, summarize, and track
many of the risks of a company. Technology
can also be used to implement internal
controls or gather data on how performance
is tracking to ERM practices.
Continually monitor.
62. Implementing the Enterprise Risk
Management (ERM
Communicate priorities. A company may
determine several high-important risks are
critical to mitigate for the continuation of the
company. These priorities should be
communicated and broadly understood as
the risks that should not be incurred under
any circumstance. Alternatively, a company
may wish to communicate the plans if the
event were to occur.
63. Implementing the Enterprise Risk
Management (ERM
Use metrics. As part of monitoring ERM
practices, a company should develop a series
of metrics to quantifiably gauge whether it is
meeting targets. Often referred to as SMART
goals, these metrics keep a company
accountable on whether it met objectives or
not.
64. Implementing the Enterprise Risk
Management (ERM
Use metrics. As part of monitoring ERM
practices, a company should develop a series
of metrics to quantifiably gauge whether it is
meeting targets. Often referred to as SMART
goals, these metrics keep a company
accountable on whether it met objectives or
not.
65. Risk Management in Schools
1)Identify Risks
2)Assess Each Risk's Likelihood
and Impact
3)Create Response Plans
4)Choose a Lead for Each Risk
5)Make Contingency Plans
6)Continuously Monitor Risks