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What is Risk Management?
 Human Activity which integrates:
1. Recognition of Risks
2. Risk Assessment
3. Developing strategies to manage it
4. Mitigation of risk using managerial resources.
Strategies
 Transfering 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.
Traditional Risk Managements
 Stemming from physical or legal causes such as:
1.   Natural disasters
2.   Fires
3.   Accidents
4.   Death
5.   Lawsuits
Ideal Risk Management
 A priorization process.


 Risks with the greatest loss and the greatest
  profitability are handled first.

 Risks with lower probability of occurence and lower
  loss are handled in descending order.
Objective of risk Management
 Reduce different risks related to a preselected domain
 to the level accepted by society.

 It may refer to numerous types of threaths caused by
 the environment, technology, humans, organizations
 and politics.
Intangible and Relationship Risks
 Risk that has a 100% probability of occuring but is
 ignored by the organization due to a lack of
 identification ability.

 Appears when ineffective collaboration occurs.
Steps in the Risk Management
Process
1.   Identification of risk in a selected domain of interest.
2.   Planning the remainder of the process.
3.   Mapping out.
4.   Defining a framework for the activity and an agenda
     for identification
5.   Developing an analysis of risk involved in the process
6.   Mitigation of risks using different resources.
Exercise
 Risk avoidance


 Risk Reduction


 Risk Transfer


 Risk Mitigation plan


 Implementation

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Risk management

  • 1.
  • 2. What is Risk Management?  Human Activity which integrates: 1. Recognition of Risks 2. Risk Assessment 3. Developing strategies to manage it 4. Mitigation of risk using managerial resources.
  • 3. Strategies  Transfering 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.
  • 4. Traditional Risk Managements  Stemming from physical or legal causes such as: 1. Natural disasters 2. Fires 3. Accidents 4. Death 5. Lawsuits
  • 5. Ideal Risk Management  A priorization process.  Risks with the greatest loss and the greatest profitability are handled first.  Risks with lower probability of occurence and lower loss are handled in descending order.
  • 6. Objective of risk Management  Reduce different risks related to a preselected domain to the level accepted by society.  It may refer to numerous types of threaths caused by the environment, technology, humans, organizations and politics.
  • 7. Intangible and Relationship Risks  Risk that has a 100% probability of occuring but is ignored by the organization due to a lack of identification ability.  Appears when ineffective collaboration occurs.
  • 8. Steps in the Risk Management Process 1. Identification of risk in a selected domain of interest. 2. Planning the remainder of the process. 3. Mapping out. 4. Defining a framework for the activity and an agenda for identification 5. Developing an analysis of risk involved in the process 6. Mitigation of risks using different resources.
  • 9. Exercise  Risk avoidance  Risk Reduction  Risk Transfer  Risk Mitigation plan  Implementation