Professional Documents
Culture Documents
Management
What is Risk?
-
Risk Consequences
Understanding the Nature of Risk
- Could it happen?
- How bad would the loss or damage be?
- How often could it happen?
single Wrong
devastating;
Decision
may
be
Investment risk
at
Operational Risk
Risk encountered
operational Risks.
daily
operations
are
Examples:
- Injury to person on Building
- Key
designer
house
suddenly
leave
fashion
began
in
Reputation:
- Regulations
- The Media
- Private Investors
- Banking Industry
- Quoted Shareholders
- Business Partners
- Environmental Group
- Other Groups
Organisational Risk
Damage:
An organisation has to consider the value and
responsibilities that it needs to safe from damage or
loss.
Safety of people;
Assets owned by the organisation and those assets
belonging to others for whom it carries;
The confidence in the business and thus the value of
brand name;
Organizational Risk
The avoidance of litigation costs;
The legality of the organization and compliance
Organizational Risk
People:
In relation to it people organization needs
and crime;
A safe environment that protect employees and
Organizational Risk
Assets:
Intellectual Assets;
The reputation of, and confidence in, the
organization;
The network of critical supplies;
The distribution system;
Customer Base.
Organizational Risk
Revenue and Cash Flows:
Financial control
Timely cash flow
Legal Obligations:
Regulatory and Licence approval
Contractual responsibilities
Environmental Responsibilities
Fines and Penalties emerging from criminal Law
Organizational Risk
Expenses arising from litigation by employees and
third parties
Other Statutory responsibilities.
Exploring Risks
Cost of Negligence
brand values
Different organization needs
Arrangement of Insurance
Additional risks due to overseas working cannot
always be managed simply by additional insurance
or extensions to existing policies.
Such local regulatory demands could be ones
requiring certain compulsory insurance and may
insist that some business is placed in the local
insurance
Tailored solutions are available.
Uncovered Events
In countries with political, national or religious
instability an organization will have to be clear
what compensation, if any is available for damage
Internal Management
Organization possibly suffer greater loss from
internal miss-managed risks.
Common Policies designed at head office are not
implemented abroad.
Threats arise from distance managers signing poor
Global Risks
Events and trends that potential global impact
are unknown as global risks.
Global trends such as population growth and
Economic Risk
Social Risks
Arise from the area with which people and ideas move around the
world.
Worldwide television, telephone, radio and internet coverage result in
movement of culture, expectations and standards.
Government try to control Malaria, smallpox, AIDS and other
pandemics.
They try to control migration with various controls and laws.
Technological Risk
Geopolitical Risk
Arise when a group of nation disagree, causing tension and the risk
of armed conflict;or where a particular nation's philosophy and
behavior is seen as a general threat to the other.
Example: Middle East Discontention of Palestine issue.
Solution would diplomacy, discussion and mediation.
Identify Risks
Communication
Analysis Risks
Evaluate Risks
Monitor &
Review
Treat Risk
Risk culture
Risk appetite
Risk architecture
Risk assessment
Risk documentation
Risk Mitigation
Monitoring of change
Risk Management Training
Allocation of responsibilities
Risk activities and priorities
Criteria for monitoring change
Risk mitigation requirements
Each organization have its own philosophy,
objectives,
strategy,
architecture
and
methods.Each will also have its own budget
requirements depending on employed resources.
Identify Risk
Analyze Risks
Continuity Planning
Quality Control