2. TOP QUESTIONS
• What is risk management?
• Who uses risk management?
• How risk management is used?
3. What is Risk Management?
• It is the name given to a logical and systematic
method of identifying, analyzing, treating and
monitoring the risks involved in any activity or
process.
5. Who uses risk management?
• Both public and the private sectors covering a
wide range of activities or operations. These
include: Finance and Investment, Insurance,
Health Care, Public Institutions, Governments
6. What are the benefits of risk
management?
• More effective decisions
• Efficient allocation of resources
• Increased standard of accountability
• Creativity & innovation in management
• capacity to manage competing issues
• Flexibility in meeting objectives
• Transparent decision making
7. Why Do We Manage Risk?
• Project problems can be reduced as much as 90% by using risk
analysis
• Positives:
– More information available during planning
– Improved probability of success/optimum project
• Negatives
– Belief that all risks are accounted for
– Project cut due to risk level
8. How do we manage risk?
• There are steps which serves as generic guide
for any organization, regardless of the type of
business, activity or function.
• There are steps in the RM process
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14. Risk Management Rules
• Integrate into planning
• Accept no unnecessary risk
• Make risk decision at a proper level
• Accept risk if benefits outweighs the cost
15. Summary
• Risk Management is a systematic way of
thinking
• Risk management process increases
awareness of hazards and risk involved in an
operation
