Risk management

Risk management

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  Risk Management PRESENTED BY AGLAIA
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  Introduction • The processinvolved with identifying, analyzing, and responding to risk. • It includes maximizing the results of positive risks and minimizing the consequences of negative events.
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  What is RiskManagement? • Risk is an uncertain event that may have a positive or negative impact on the project. • Risk Management is the process of identifying and migrating risk.
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  Why is itimportant? • Risk affects all aspects of your project – your budget, your schedule, your scope, the agreed level of quality, and so on • Increase probability of positive event. • Reduce the occurrence of negative event.
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  Objectives of RiskManagement • Protecting employees from accidents that might result in death or injury • Due attention given to cost of handling risks. • Effective utilization of resources. • Maintaining good relations with society and public.
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  Project Management • Poorcontrol of design changes • Problems with team members • Poor control of customer changes • Poor understanding of the project manager's job • Wrong person assigned as project manager • No integrated planning and control • Organization's resources are overcommitted • Unrealistic planning and scheduling • No project cost accounting ability • Conflicting project priorities • Poorly organized project office
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  Principles of riskmanagement • be an integral part of organizational processes • be part of decision making process • explicitly address uncertainty and assumptions • be systematic and structured process • be based on the best available information • be tailorable • take human factors into account • be transparent and inclusive • be dynamic, iterative and responsive to change • be continually or periodically re-assessed
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  Types • Enterprise Risk •Credit Risk • Market Risk • Operational Risk
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  Advantages of RiskManagement • First: the awareness of possible threats. This also includes identification of possible loss of assets. In that way, the company can have back up funds in case they lose an asset. • The manager can also highlight how easier it will be to determine if a system can still operate in case these threats occur. • Risk management can also transform threats into a threshold to new opportunities. • When a threat occurs, it’s important for all departments to come together and deal with it. Risk management prevents a department from isolation. Everyone is involved because everyone is aware. Imagine the impact a company will have to their clients if they show oneness in the midst of perplexity.
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  Disadvantages of RiskManagement • Cost. This module will shell out cash from the company funds. Companies will have to improve their cash generating tactics in order to provide means for training and maintenance for something that hasn’t happened yet. • Training. The time spent for development and research will have to be allocated for training to ensure proper execution of risk management. • Motivation. Employees
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