RISK MANAGEMENT PROCESS
At the end of the discussion, learners should be
able to:
Define risk management
Illustrate the risk management process
Expound the processes in the risk management
Apply Risk Treatment, Contingency Plan, Implementation
and Monitoring
o Apply opportunity options in risk management and
Future’s Thinking
o
o
o
o
Establish Organization’s
Context
Risk management encompasses the
identification, analysis, and response to risk
factors that form part of the life of a business.
•
•
•
•
•
Identification
Analysis/Assessment
Action Planning
Monitoring and Implementation
Review, Measure and Control
Sample Risk Assessment and
Action Planning
Impact of Risk
Scale
3
2
1
Impact
High
Medium
Low
Likelihood
Scale
3
2
1
Likelihood
High
Medium
Low
Risk Rating = Impact x Likelihood
Risk Assessment Scenarios
Impact of Risk
Scenario
I
II
III
IV
V
VI
VII
Likelihood
Potential
Likelihood
Possible Risk
Impact
Level
1
1
1
1
2
2
2
1
2
2
2
4
2
3
6
3
2
6
3
3
9
Risk Rating from 1-3 = Low Risk
Significantly Actionable,
Thus a risk treatment or
Risk Rating from 4-5= Medium Risk
Contingency plan, as the case
Risk Rating from 6-9=High Risk
maybe
SAMPLE RISK MATRIX AND IMPLEMENTATION PLAN
Opportunity options in risk management
and Future’s Thinking
Opportunities can be in a form of new practices/ services/ products; opening new markets, addressing new
customers, building partnerships, using new technology and other desirable and viable possibilities that can be
pursued by the Organization. For purposes of clarity and facilitate the assessments which opportunity to be
pursued, it will be useful to describe opportunities as action items.
The opportunity shall be assessed according to its relevance to the following:
− Strategic directions
− Compliance obligations
− Service quality/ customer satisfaction
− Cost of implementing the action
− Cost of maintaining the action
− Return on Investment
− Image/ Brand
− Manpower utilization
− Availability of raw material/ equipment/ service
− Beneficiaries of action
Excellent Opportunity: Opportunity shall be pursued immediately; can be included as
part of the objective and action plan for the current year
Fair Opportunity: To be decided by the Top Management;
Poor Opportunity: Not to be pursued for now; can be considered in the next periodic review
September 10,2022 – Grouping/Teaming
September 10, 2022 – September 23,2022– Break-out
Sessions (Risk Assessment and Action Planning)
September 24, 2022 – Presentation of Complete Risk
Assessment and Monitoring of Action Plan (Physical
Team 1 – 4:15-4:45PM
Team 2 – 4:46-5:15PM
Team 3 – 5:16-5:45PM
Team 4 – 5:46-6:15PM
AGAINST ALL ODDS - Elon Musk
(Motivational Video)
“If something is important enough,
you should try even if the probable
outcome is low.” – Elon Musk
BEFORE WE LEAVE THIS
MEETING, ANY OTHER
QUESTION?
GOOD NIGHT AND HAPPY WEEKEND!