1.
I N F O G R A P H I C
BUSINESS RISK MANAGEMENT
Y O U R R O A D T O A S U S TA I N A B L E O U T S TA N D I N G C O M P A N Y
created by Alex Milovanovich
www.poslovnastrategija.rs
1

2.
business risk is exposure to threatening influences that can
deteriorate company's ability to meet its strategic, financial
and/or operational goals thus it has to be met at both strategic
and operational levels
definition
created by Alex Milovanovich
www.poslovnastrategija.rs
2

3.
BUSINESS
ENTITY
Compliance
(legal) risk
Financial risk
Strategic risk
• Trade & industry extramarket generated
• Intramarket generated
• Technology
• Project
• Regional political instability
Operational risk
Reputational
risk
types of business risk
3created by Alex Milovanovich
www.poslovnastrategija.rs

4.
risk identification process
Begin with own strategy objectives and sucess
factors. What could prevent you reaching them?
Gather information from various sources: own
team, research, customer survey, external
experts.
Identify and analyse the sources that may
trigger problems.
Use SWOT, scenarios, „fault tree“ analysis,
„bow tie“ analysis, incident analysis and/or any
other appropriate tool.
Document each risk with symptoms, causes and
consequences.
4created by Alex Milovanovich
www.poslovnastrategija.rs

5.
risk evaluation
changing
probability
over time
Impact
(severity)
timing
probability
quantification
5created by Alex Milovanovich
www.poslovnastrategija.rs

6.
risk quantification
Quantification = threat likelyhood x ..
.. asset value under threat x ..
.. vulnerability exposure
6created by Alex Milovanovich
www.poslovnastrategija.rs

7.
risk map
Highly unlikely Unlikely Possible Likely Almost certain
Catastrophic
Major
Moderate
Minor
Insignificant
1 4
5 6 2
3
7created by Alex Milovanovich
www.poslovnastrategija.rs

8.
risk mitigation
Develop a high-level mitigation strategy
For every major risk identified there should be a team
responsible for preparing a formal mitigation plan
Develop mitigation plan for every major risk
counting on available resources only
Identify actions and steps
needed for implementation
Develop a contingency plan
("plan B") for any high risk.
8created by Alex Milovanovich
www.poslovnastrategija.rs

9.
basic risk mitigation strategies
avoid
transfer
acceptretain
prevent
9created by Alex Milovanovich
www.poslovnastrategija.rs

10.
turn risk into opportunity
encourage
risk taking
be agile
recognise
opportunities
recognise
risks that
recur
In this disruptive technological era try to be a disruptor!
10created by Alex Milovanovich
www.poslovnastrategija.rs

11.
Business Strategy in Balkans
I N F O G R A P H I C
BUSINESS RISK MANAGEMENT
Y O U R R O A D T O A S U S T A I N A B L E O U T S T A N D I N G C O M P A N Y
Also see infographic “STRATEGY DEVELOPMENT METHODOLOGY“ at
https://www.slideshare.net/SasaMilovanovic/strategy-development-methodology
created by Alex Milovanovich
www.poslovnastrategija.rs
11