Risk Management

Main Topics of Study:

Introduction

  • What is risk management?
  • Why is this important?
  • The overall risk process including analysis, risk identification, risk assessment, risk evaluation, risk planning and risk management

Analysing the business

  • Understanding the business or project activity
  • Understanding the primary processes and goals
  • This includes the inputs (such as business objectives, financial reports, marketing plan)
  • Constraints (such as the risk management plan)
  • Mechanisms (such as the analysis tools, SWOT, PEST)
  • Outputs (analysis findings)
  • Examples of business processes include; marketing and sales, manufacturing, billing, training, facilities management and purchasing

Risk identification

  • Identifying risk events and constructing a risk register
  • PEST and SWOT analysis
  • Risk questionnaire
  • The risk register will include each risk event together with information on status, probability, impact and risk response
    action
  • Risk assessment and evaluation. This stage looks at assessing the probability and likely impact of the risks identified. Decision trees. Pareto analysis. Expected Monetary Value (EMV).
  • Classifying risks into “high”, “medium” or “low”

Risk planning

  • Producing action plans based on the risk assessment and evaluation stages
  • Concept of risk appetite. Risk response strategies including; risk reduction and risk removal

Risk management

  • Ensuring that appropriate risk responses are implemented. This will include: reacting to early warning indicators, registering changes to risks, reviewing risks and those involved, and reporting on outcomes.

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