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    Session 4 - Introduction To Risk Management

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    Juliean Torres Akiatan
    The document introduces the concepts of risk and risk management. It defines risk as an uncertain event that may prevent an organization from achieving its objectives. Risk management is defined as a process to identify risks, assess them, address the highest priority risks, and monitor/report on risk management. The risk management cycle includes identifying risks, assessing impact and likelihood, prioritizing risks, evaluating controls, taking action, and monitoring/reporting risks. The document also categorizes types of risks as financial, operational, and reputational.

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    Session 4 - Introduction To Risk Management

    Uploaded by

    Juliean Torres Akiatan
    28 views16 pages
    The document introduces the concepts of risk and risk management. It defines risk as an uncertain event that may prevent an organization from achieving its objectives. Risk management is defined as a process to identify risks, assess them, address the highest priority risks, and monitor/report on risk management. The risk management cycle includes identifying risks, assessing impact and likelihood, prioritizing risks, evaluating controls, taking action, and monitoring/reporting risks. The document also categorizes types of risks as financial, operational, and reputational.

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    Session 4- Introduction to Risk Management

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    The document introduces the concepts of risk and risk management. It defines risk as an uncertain event that may prevent an organization from achieving its objectives. Risk management is defined as a process to identify risks, assess them, address the highest priority risks, and monitor/report on risk management. The risk management cycle includes identifying risks, assessing impact and likelihood, prioritizing risks, evaluating controls, taking action, and monitoring/reporting risks. The document also categorizes types of risks as financial, operational, and reputational.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views16 pages

    Session 4 - Introduction To Risk Management

    Uploaded by

    Juliean Torres Akiatan
    The document introduces the concepts of risk and risk management. It defines risk as an uncertain event that may prevent an organization from achieving its objectives. Risk management is defined as a process to identify risks, assess them, address the highest priority risks, and monitor/report on risk management. The risk management cycle includes identifying risks, assessing impact and likelihood, prioritizing risks, evaluating controls, taking action, and monitoring/reporting risks. The document also categorizes types of risks as financial, operational, and reputational.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    INTRODUCTION TO

    RISK MANAGEMENT

    Theory and Practice

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    What is a RISK?

     A risk is an uncertain event which may occur in the future


     A risk may prevent or delay the achievement of an
    organization’s or units objectives or goals.
     A risk is not certain- Its likelihood can be estimated

    Note: Not all risk is bad, some level of risk must be taken in order to progress.

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    What is RISK MANAGEMENT?

    It is a process to:

     Identify all relevant risk


     Assess/ rank those risks
     Address the risks in order of priority
     Monitor risks & report on their management

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    MISSION Define Purpose

    STRATEGY High Level Plans

    GOALS are statements of what needs to be accomplished to implement the strategy. 

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    RISK IDENTIFICATION:
     What are the threats and uncertainties associated with my organization’s or units
    objectives?

     Separate out the risk into its cause & possible effect
    • Be concise & clear
    • Do not concentrate on symptoms only

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    Assess the risk’s


    Impact
    Likelihood

    Prioritize the risks


    Hint: Get input from appropriate individuals
    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    Challenge & Evaluate Controls

     Control: Policy, action, procedure or process designed to prevent risk or


    to limit its impact

    Do they work, are they effective?

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    Challenge & Evaluate Controls


     Control: Policy, action, procedure or process designed to prevent risk or to limit
    its impact

     Do they work, are they effective?

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    Take Action!
     For serious risks where controls are
    A) Weak
    B) Absent

     Examine Cost vs. Benefit

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    Types of Action

    A)Tolerate
    B)Treat
    C)Substitute
    D)Terminate

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Risk Management Cycle

    Monitor & Report


     Use a standard format for capturing risk data
     Review all risks at least annually
     Serious risks to be reviewed more often depending on
    circumstances
     Report on risk to senior management / Board
     Make Risk Register available to stakeholders to show good
    governance

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Categories of Risks
    Financial

     Reduction in funding
     Failure to safeguard assets
     Poor cash flow management
     Lack of value for money
     Fraud / theft
     Poor budgeting

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Categories of Risks cont.
    Operational

     These risks result from failed or inappropriate policies,


    procedures, systems or activities e.g.
     Failure of an IT system
     Poor quality of services delivered
     Lack of succession planning
     Health & Safety risks
     Staff skill levels
     No process to track contractual commitments
    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University
    Categories of Risks cont.
    Reputational

     Organization engages in activities that could threaten


    it’s good name
     Through association with other bodies
     Staff / members acting in a criminal or unethical way
     Poor stakeholder relations

    DCU Risk & Compliance Officer (November 2015), Ollscoiil Chathair Bhaile Atha Cliath, Dublin City University

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