Risk management (2)

Analysing the probability of an event taking place ,pro-active planning to minimize the negative impact on a business

focuses on any risks affecting the long term goals of a business

considers

competition

market changes

regulatory changes

integrates risk analysis in strategic planning

aligns decisions with organisation's mission/vision

1.Risk Assessment

Identifiaction of risks

ENVIRONMENTAL SCANNING ANAYLSIS

MICRO/MARKET/MACRO

Auditing

risk workshops

benchmarking

surveys

scenario planning

Description of risks

Estimation of risk impact

estimation tools

PESTLE

SWOT

PROS/CONS CHART

Estimation matrix

probability vs impact

decision trees

2.Risk management policy

draft document/writing

communicate to parties

implement strategies

3. Risk response

Risk Avoidance

Risk Reduction

Risk Acceptance

4. Risk Reporting

stakeholders

internal

external

Is how individuals interpret & evaluate potential risks

based :

experiences

emotions

cultural factors

It influences how people view and respond to uncertainties

have balance between maximizing business operations & mitigating potential threats

ensure smooth business operations protecting business from potential disruptions

Refers to the degree that a business is willing to accept risks to achieve value or business goals

it is directly related to the strategy of a business (LONG TERM GOALS)

shared attitudes & practices in the business (the collective attitude towards accepting risk)

risk culture in a business can reward risk-taking or risk avoiding behaviour

Country

Financial

operational

Strategic

Reputational

Environmental

Supply Chain

can be seen as a threat /opportunity/uncertainty