This document defines key concepts in risk management and integrated risk management. It outlines the 5 key steps to risk management: 1) plan risk management, 2) identify risks, 3) analyze risks, 4) plan risk responses, and 5) monitor and control risks. It also describes different approaches to responding to negative and positive risks, such as avoiding, mitigating, transferring, or accepting negative risks and exploiting, enhancing, sharing, or accepting positive risks. The goal of integrated risk management is to take a more coordinated approach to risk identification and response across an organization.

1. MPA 209:
Project Planning & Development
INTEGRATED RISK MANAGEMENT
KATHLEEN F. ABUBO
AY 2020-2021
(Risk Management Plan)

2. LEARNING
Objectives
Define what is Risk, Risk Management,
and Integrated Risk Management.
Familiarized with 5 Key Steps of Risk
Management.
How to respond to risks.

3. RIS
K
It is an uncertain
future event or
condition which if
happens affect the
mission objectives
of a project.
https://eunepa.com/what-is-risk-
management/#:~:text=Risk%20is%20an%20uncertain%20future,happens%2C%20affects%20a%20mission's%20objective.&text=Un
derstanding%20these%20risks%20and%20effectively,in%20achieving%20long%2Dterm%20success.

4. is defined as an event that has
a probability of occurring, and
could have either a positive or
negative impact to a project
should that risk occur.
RIS
K
a risk may have one or more
causes and, if it occurs, one
or more impacts.
http://www.phe.gov/about/amcg/contracts/documents/risk-management.pdf

5. The result of risk is
NOT always NEGATIVE.
POSITIVE RISKS
are known as
OPPORTUNITIES

6. is the identification, assessment, and prioritization of risks
(positive or negative) followed by a coordinated and
economical application of resources to minimize, monitor,
and control the probability and/or impact of unfortunate
events or to maximize the realization of opportunities.
RISK
MANAGEMENT
Source: Wikipedia

7. - is an ongoing process that
continues through the life of a
project. It includes processes for
risk management planning,
identification, analysis, monitoring
and control.
- the practice of identifying and
analyzing potential risks in
advance and taking
precautionary steps to limit risks
and maximize opportunities.
RIS
K
http://www.phe.gov/about/amcg/contracts/documents/risk-management.pdf
MANAGEM
ENT
https://www.igi-global.com/dictionary/risk-management/25424

8. Identification of risks
Assessment of risks
Prioritization of risks
What is RISK MANAGEMENT?
Resources
Probability and/or impact of unfortunate events
Realization of opportunities

9. is a more disciplined approach to risk management.
It uses technology to identify and tract threats and
the steps to take control those risks; and gives
senior leaders at the organization better insight into
which risks pose the greatest danger, so they can
make better decisions about how to respond.
https://reciprocitylabs.com/resources/what-are-the-benefits-of-integrated-risk-management/
RISK MANAGEMENT
Integrated

10. is a set of practices and processes supported by a
risk-aware culture and enabling technologies, that
improves decision making and performance
through an integrated view of how well an
organization manages its unique set of risks.
https://www.gartner.com/en/information-technology/glossary/integrated-risk-management-irm
RISK MANAGEMENT
Integrated

11. Gartner defines Integrated Risk
Management (IRM) as the combined
technology, processes and data that
serves to fulfill the objective of enabling
the simplification, automation and
integration of strategic, operational and
IT risk management across an
organization.
RISK MANAGEMENT
Integrated
https://www.gartner.com/reviews/market/integrated-risk-management

12. is a continuous, proactive and systematic process to
understand, manage and communicate risk from an
organization-wide perspective. It is about making
strategic decisions that contribute to the achievement of
an organization’s overall corporate objectives.
RISK MANAGEMENT
Integrated
http://www.riesgooperacional.com/docs/docs/Estandar_canada.pdf

13. Plan Risk
Management
Identify
Risks
Analyze
Risks
Plan Risk
Response
Monitor and
control Risks
RISK MANAGEMENT 5 KEY STEPS
 RISK MANAGEMENT PLAN specifies the management
intent, systems, and procedures required for managing
risks.
 RISK MANAGEMENT PLAN will provide the definitions of
various risk-related terms. Roles and responsibilities
related to risk, and tools and templates are also
included in it.
1

14. Plan Risk Management
Risk
Identification
Risk Analysis Risk Response
Risk
Monitoring
HOW TO DO THESE?

15. RISK
MANAGEMENT
PLAN
a written document
that details the
organization’s risk
management process.

16. Plan Risk
Management
Identify
Risks
Analyze
Risks
Plan Risk
Response
Monitor and
control Risks
RISK MANAGEMENT 5 KEY STEPS
2
 Once the plan is in place, IDENTIFICATION OF RISKS is
the first key step in actual management of risks.
 This is the process of identifying the potential risks, their
root cause, and the risk consequences.
 Best done in a group environment. It is a group effort,
where subject matter experts from various groups
(management, employees, customer, other
stakeholders) participate.

17. Tools Used:
 Brainstorming, commonly used tool
 Other tools:
 Ishikawa Diagram (Cause & Effect)
 Flow Diagram
 SWOT Diagram
Risk Register is the output of Identify Risks Process
Identify Risk

18. Plan Risk
Management
Identify
Risks
Analyze
Risks
Plan Risk
Response
Monitor and
control Risks
RISK MANAGEMENT 5 KEY STEPS
3
 After having the list of all potential risks, the next step is
to analyze and prioritize risks.
- Risks are analyzed to set priority.
- Sets focus on high priority risks
 Some risks may need detailed action plan, and some
may just need periodic monitoring.

19. QUALITATIVE
RISK ANALYSIS
Quick and easy
to perform
Subjective
Analyze Risk QUANTITATIVE
RISK ANALYSIS
Detailed and
time consuming
Analytic
Probability & Impact Matrix
Tools:
Expected monitory value analysis
Monte Carlo Analysis
Decision Tree

20. PROBABILITY & IMPACT MATRIX
Probability
Impact

21. Plan Risk
Management
Identify
Risks
Analyze
Risks
Plan Risk
Response
Monitor and
control Risks
RISK MANAGEMENT 5 KEY STEPS
4
 Once we have analyzed risks, the next step is to PLAN
RISK RESPONSE for each identified risk.
 When planning a risk response, we attempt to reduce
the impact and chance of negative risks and enhance
the impact and chance of positive risks.

22. Responding to risks:
Negative Risk
Avoid
Mitigate
Transfer
Accept
Positive Risk
Exploit
Enhance
Share
Accept

23. Responding to Negative Risk
Negative Risk
Avoid
Mitigate
Transfer
Accept
AVOID RISK
- Completely eliminate the possibility of
the risk.
Example:
- Adopting a proven approach, instead of a
new approach
- Improving team communication

24. Responding to Negative Risk
Negative Risk
Avoid
Mitigate
Transfer
Accept
MITIGATE
- Reduce the probability and/or impact of
the risk.
Example:
- Simplify the processes
- Develop prototype
- Additional inspections

25. Responding to Negative Risk
Negative Risk
Avoid
Mitigate
Transfer
Accept
TRANSFER
- Transfer the risk to a third party.
Example:
- Insurance
- Performance Warranty

26. Responding to Negative Risk
Negative Risk
Avoid
Mitigate
Transfer
Accept
ACCEPT
- Accept the risk if no action is feasible or
if the probability and/or impact is too
small.
TYPES OF ACCEPTANCE
A. Passive Acceptance – no plan created
to deal with the risk
B. Active Acceptance – contingency plan is
created

27. Responding to Positive Risk (Opportunities)
EXLOIT
- Make sure that positive risk happens and
make best use of the opportunity.
Example:
- Put best team members and more
resources
Positive Risk
Exploit
Enhance
Share
Accept

28. Responding to Positive Risk (Opportunities)
ENHANCE
- Increase the probability and/or impact of
the risk.
Example:
- Put best team members and more
resources
Positive Risk
Exploit
Enhance
Share
Accept

29. Responding to Positive Risk (Opportunities)
SHARE
- Share the opportunity with third party
Example:
- Forming team, Joint venture or a
company with a third party
Positive Risk
Exploit
Enhance
Share
Accept

30. Responding to Positive Risk (Opportunities)
ACCEPT
- Accept the opportunity when it happens
but not actively pursuing it.
Example:
- Probability and rewards are not attractive
Positive Risk
Exploit
Enhance
Share
Accept

31. Plan Risk
Management
Identify
Risks
Analyze
Risks
Plan Risk
Response
Monitor and
control Risks
RISK MANAGEMENT 5 KEY STEPS
5
 Regularly review the identified risks and ensure that
these are still relevant.
- Identify new risks
- Remove risks that are not relevant
 Risk audits may be conducted to ensure that the plan is
being implemented and is effective.

33. REFERENCES:
https://eunepa.com/what-is-risk-
management/#:~:text=Risk%20is%20an%20uncertain%20future,happens%2C%20affects%20a%20mission's%20objective.&text=Under
standing%20these%20risks%20and%20effectively,in%20achieving%20long%2Dterm%20success.
http://www.phe.gov/about/amcg/contracts/documents/risk-management.pdf
https://www.igi-global.com/dictionary/risk-management/25424
https://reciprocitylabs.com/resources/what-are-the-benefits-of-integrated-risk-management/
https://www.gartner.com/en/information-technology/glossary/integrated-risk-management-irm
https://www.gartner.com/reviews/market/integrated-risk-management
https://www.youtube.com/watch?v=Cp_XEhexcDw&t=271s
Wikipedia