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RISK MANAGEMENT
Lifecycle Process
Your Company Name
1
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Content
Risk Management Lifecycle
▪ Your text here ▪ Your text here
Introduction
▪ Risk Management- Introduced
▪ Types of Risk
▪ Risk Categories
▪ Identify Risk Categories
Procedure for managing the Risk
▪ Risk Planning
▪ Risk Identification
▪ Risk Assessment
▪ Risk Monitoring
▪ Risk Tracking
Stakeholders Engagement
▪ Risk Appetite ▪ Risk Tolerance
Tools & Practices
▪ Risk Impact Analysis
▪ Impact &Probability Analysis
▪ Risk Mitigation Strategies
▪ Qualitative Analysis
▪ Quantitative Analysis
2
Risk Management Lifecycle
Develop Risk Management Plan
Risk
Management
Lifecycle
Risk Management Close-Out
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3
Introduction
Identify Risk
Categories
Risk Management-
Introduction
Risk
Categories
Types of
Risk
4
Risk Management- Introduction
Minimize Monitor Control
Probability and/or impact
of unfortunate events
Maximize
Assessment of
Risks
Identification of
Risks
Prioritization of
Risks
Realization of
Opportunities
Resources
5
Types of Risks (1/2)
Demand Governance Access to Services People
Regulatory Strategic Planning Processes Financial
Economical Ethics & Values Business Interruption Technology
Socio- Political Stakeholder Relations Emergency Response Infrastructure
Environment
External
Risks
Internal Risks
Strategic Operational Enablers
Listed below are
various types of
internal and external
risks. You can add/
delete the risk types
as per your
requirements
6
Types of Risks (2/2)
▪ Cost overrun
▪ Operational controls
▪ Poor capacity management
▪ Supply chain issues
▪ Employee issues incl.Fraud
▪ Bribery and corruption
▪ Regulation
▪ Commodity prices
▪ Demand shortfall
▪ Customer retention
▪ Integration problems
▪ Pricing pressure
▪ Regulation
▪ R & d
▪ Industry or sector downturn
▪ JV or partner losses
▪ Debt and interest rates
▪ Poor financial management
▪ Asset losses
▪ Goodwill and amortization
▪ Accounting problems
▪ Macroeconomic
▪ Political issues
▪ Legal issues
▪ Terrorism
▪ Natural disasters
Strategic
Financial
Hazard
Operational
7 Below are four
broad categories of
risk and the various
factors associated
with the same. You
can modify them as
per your needs
Risk Categories
Product Design
System/
Software
Manufacturing All Other
Project
Management
Quality
Product Performance Data Accuracy Assembly Consumer Service Team Work Quality System
Design Security Tools Environment Product Cost Sigma Levels
Text Here Text Here Text Here Text Here Text Here Text Here
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8
Identify the Risk Categories
Risk level
Profitable
Growth
Low Price
Develop New
product
Leverage
Technology
Risk Score by
Risk Category
Risk Category Financial Financial Operational Operational Strategic Strategic
Risk Sub Category Funding Capacity Capacity Availability
Customer
Retention
Demand
Shortfall
Likelihood 2 3 3 4 5 5
9
Stakeholder Engagement
Risk
Stakeholders Risk
Appetite
Risk
Tolerance
10
Stakeholders Risk Appetite
Medium
High Low
Medium
High
Low
Impact
Impact
Within Risk Appetite
Exceeding Risk
Appetite
Forming Risk Appetite
11
Obtain an estimate of
the risk appetite of the
shareholders with the
help of the below bar
graph. This will help in
assessing the
acceptable risk level
Risk Tolerance (1/2)
Very Low Very High
0.7 0.2 0.1 0.9 0.5
Cardinal Scale
(example)
Low Moderate High
Insignificant
increase
<10% cost
increase
10- 20% cost
increase
20- 25% cost
increase
> 25% cost
increase
Insignificant fall
in schedule
<7% schedule slippage 7-10% schedule slippage
10-15% schedule
slippage
15-20% schedule
slippage
Insignificant scope
decrease
Minor areas of
scope affected
Major areas of
scope affected
Reduction unacceptable
Project end item
is useless
Barely noticeable
degradation
Only demanding
applications are affected
Reduction requires
approval
Reduction unacceptable
Project end item
is unusable
Schedule
Scope
Quality
Cost
Ordinal Scale (example)
12 Estimate the Risk
tolerance level of the
stakeholders on the
basis of the below
mentioned criteria. You
can modify these as
per your requirements
Likelihood
Impact
Business
continuity
problems Supplier
default
Loss of key
partnerships
IT problems
Poor project
management
Product or service
quality
Loss of key
managers
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Risk Tolerance (2/2)
13
Below is a heat map
showing the risk
tolerance limit of the
stakeholders, where the
redline shows the
boundary between risks
that are acceptable &
those that are not
Procedure
Risk Planning
Risk Register
Risk Identification
Risk Assessment
Risk Monitoring
Risk Tracking
14
Risk Management Plan
Type of
Risk
Outcome
Existing risk
treatment
actions in
place
Rating
Proposed risk
treatment
actions to
mitigate risk
Additional
Resources
Target Date
Person
Responsible
Strategic risk
Performance
Deterioration
Proper
assessment of
underlying
strategies
2
Detailed
understanding of
the market
Your Text Here 31/4/2018
John
Smith
Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here
Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here
Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here
15 Below is the template to
list down the plan to
manage the types of
risks expected by the
company
Risk Register
Type of Risk
Description
of Risk
Probability Impact
Risk
Reduction
Strategy
Contingency
plans
Risk
Owner
H M L Perf. Cost Time
Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here
Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here
Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here
Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here
16
Maintain a risk register
to keep a close track of
all the risks faced by the
company and their
impact on the company
performance
Risk Identification (1/2)
Terminate
Treat
Tolerate
Transfer
Consequences
Likelihood
0
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17
This graph shows the
likelihood and impact of
risk on the company and
the strategy which the
company might opt to
mange the risk. You can
alter this as per your
Risk Identification- Example
How Long Can You
Do Without?
Impact of Doing
Without?
Vulnerabilities?
Contingency in case of a
disaster?
Equipment (IT only) 5 days
After five days no way to
schedule production or track
orders
No UPS/ generator., MD
hardware, SPOF SME
Use paper reports for 5 days then go
manual for as many members as
possible
Facility 0 days
No production, potential for
bankruptcy, IT non- existent
Metal building, flood zone, poor
maintenance, no perimeter
security , door lock broken
Look for warehouse space, attempt to
salvage equipment and restart
operation, file bankruptcy
Personnel 0 days
Degraded operations, low
service levels
Too many SPOF
Best effort shifting of available staff,
temps
Raw Materials
30 days before new
deliveries
None until on hard exhausted Single supplier relationship Search for alternatives supplier
Transportation System 30 days in 2 days out
No suppliers
No deliveries
Location, design of entrance None
Utilities
0 hours/power
0 hours/water
Extrusion shuts down, lines
cleaned, waste collected and
prepared for grinder, IT non-
existent
Single power feed, no generator
or backup water supply
None
Vendors (Sourcing) 4 hours No call center Mercy of vendor Being in-house
18 We have given an
example of identifying
risk in the below table,
you can alter the fields
as per your needs
Risk Identification (2/2)
Identify
Risks
Cost
• Budget Exceeded
• Unanticipated Expenditure
Resources
• Team is under-resourced
• Materials shortage
• Machinery unavailable
• Industrial Action
• Skills gap
Environmental
• Bad weather results in re-work
• Weather delays progress
• Adverse environmental effects occur
• Environmental approvals not
complied with
Time
• Schedule overruns
• Tasks omitted from Schedule
• Opportunity to compress
Schedule
Communication
• Poor communication
(Stakeholder dissatisfaction)
• Positive & timely
communications (positive
publicity)
Scope
• Scope creep
• Scope poorly defined
• Project changes poorly managed
19 This is another way of
identifying the types of risk
associated with a project
basis different types of factors
like cost, time, resources etc.
You can list down the risk
associated with all/ some of
these factors as per your
requirements
Risk Assessment
Probability Impact Impact
High (5)
• Major uncertainties remain
• No or little prior experience or data
• Infrastructure and/or resources not in place
• Performance, quality, cost or safety
impacts resulting in major redesign and
program delay
Medium (3)
• Some uncertainties remain
• Some experience and data exist
• Infrastructure in place but under-resourced
• Performance, quality, cost and/or
safety impacts resulting in minor
redesign and schedule adjustment
Low (1)
• Few uncertainties remain
• Significant experience and data exist
• Infrastructure in place and fully
• Performance, quality, cost and safety
requirements met within planned
schedule
Consequences Likelihood of Occurrence Likelihood of detection
1. No. direct effect on operating service level
2. Minor deterioration in operating service level
3. Definite reduction in operating service level
4. Source deterioration in operating service level
5. Operating service level approaches zero
E. Probability of once in many years
D. Probability of once in many operating months
C. Probability of once in some operating weeks
B. Probability of weekly occurrence
A. Probability of daily occurrence
A. Detectability is very high
B. Considerable warning of failure before occurrence
C. Some warning of failure before occurrence
D. Little warning of failure before occurrence
E. Detectability is effectively zero
Risk Scoring System
Low High
1 3 5 R
Show
stopper
High
5
5 15 25 O
Significant
risk
3
3 9 15 Y
Proceed
with
caution
Low
1
1 3 5 G
No
concern
Risk Rating Guide
20 We have listed the
framework for assessing
the risk level. You can
use the same for risk
assessment
Risk Assessment (contd..)
Risk Scoring Results
Insignificant Minor Moderate Major Catastrophic
Likelihood 1 2 3 4 5
- - - - -
A. Almost Certain
- - - - -
B. Likely
- - - - -
C. Possible
- - - - -
D. Unlikely
E. Rare - - - - -
Extreme Risk
Immediate Action where senior
management get involved
High Risk
Management responsibility should
be specified
Moderate Risk
Managed by specific
responsible person
Low Risk
Managed by
routine process
Consequences
21
On the basis of the
framework, you can
obtain the risk score and
determine its likelihood of
occurrence
Risk Analysis – Simplified Format
Risk Items (Potential Future Problems Derived from
Brainstorming)
Likelihood of Risk
Item Occurring
Impact to Project
if Risk Item Does
Occur
Priority
(Likelihood *
Impact)
New operating system may be unstable 10 10 100
Communication problems over system issues 8 9 72
We may not have the right requirements
9 6 54
Requirements may change late in the cycle
7 7 49
Database software may arrive late
4 8 32
Key people might leave
2 10 20
22
Below is the simple version of
analysing the risk level on the
basis of the mentioned
parameters. You can alter
these values & parameters as
per your requirements
Risk Analysis- Complex
Description of Risk
Control Measures
(Detail any existing
Controls)
Risk Analysis
Additional Control
(Detail additional to be
implemented Controls)
Risk Analysis(with
additional controls)
C L
Risk
Rating C L
Risk
Rating
Step 1: Consider
What is the consequence of the hazard occurring. Consider what
is the most possible consequence with respect to work
Extreme
Critical
Major
Minor
Regulatory
Non compliance
Major non
compliance
Warning
Minor non
compliance
Safety at work
Sickness
Casualty
First aid
Medical treatment
Step 3: Calculation Risk
1. Take Step 1 rating and select correct column
2. 2. Take Step 2 rating and select correct row
3. 3. Use the risk score where the two ratings cross on the
matrix below.
H = High, S = Serious, M = Medium, L = Low
Step 2: Consider Likelihood
What is the likelihood of the hazard consequences occurring in
Step1
Almost Is expected to occur in most
Certain Circumstances (once per year)
Likely Will probably occur once (every 5 year)
Possible
Event might occur at some time
(10years)
Unlikely/
Rare
Event expected to occur only in
exceptional circumstances (20+ years)
Likelihood
23
Below is a complex version of
analysing the risk level. We
have listed the steps to be
followed in calculating the risk
and its certainty. Using these
steps you can estimate the
risk level associated with your
project/ company.
Risk Response Plan
Negative
Risk
Positive
Risk
Mitigate
Avoid
Transfer
Accept
Exploit
Enhance
Share
Accept
Responding to Risk
24
There are many ways in
which you can respond to the
risk levels. We have listed
down below both the negative
& positive risk response
ways. You can choose any as
per your requirements.
Risk Response Matrix
Probability
0 10 20 30 40 50
20
40
60
80
100
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Avoid
Transfer
Retain
Retain
▪ Weather
Delays
▪ Different Site
Conditions
▪ Unrealistic
Schedule
▪ Design Changes
▪ Labor
Productivity
▪ Defective Work
▪ Equipment
Failure
▪ Labor dispute /
Strike
25
You can also show the
risk response with the
help of graph showcasing
the probability of risk and
the risk response
associated with the
same.
Risk Control Matrix
Key Process Number Text Here Text Here
Process Text Here Text Here
Risk Number Text Here Text Here
Risk Text Here Text Here
Control Objective Text Here Text Here
Control Number Text Here Text Here
Control Description Text Here Text Here
Control Owner Text Here Text Here
Process Narrative Text Here Text Here
Control Category Text Here Text Here
Control type Text Here Text Here
Primary Secondary Text Here Text Here
Control Frequency Text Here Text Here
Design Assessment Text Here Text Here
26
Prepare a risk control matrix
to have a close tap on the risk
related measures you have
intended to take. The below
table helps you to keep a log
of the control measures you
have decided to take to
manage the risk levels.
Risk Tracker (1/2)
ID 1 2 3 4 5 6 7 8 9 10 11 12
Description of risk
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Impact
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Risk Response
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
High Level
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Risk Owner
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Nates
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
Text
Here
27 Below is the template
which could be used to
track the risk factors and
how we are planning to
overcome the same
Risk Item Tracking (2/2)
Risk Items
Monthly Ranking
Risk Resolution
This Month Last Month
Number of
months
Inadequate Planning 1 2 4 Working on revising the entire project plan
Poor Definition of Scope 2 3 3
Holding meetings with project customer and
sponsor to clarify scope
Absence of Leadership 3 1 2
Just assigned a new project manager to lead the
project after old one quit
Poor Cost Estimates 4 4 3 Revisiting cost estimates
Poor Time Estimates 5 5 3 Revisiting schedule estimates
28 Below is the template
which could be used to
track the risk factors and
the progress we have
made so far.
Tools & Practices
Probability & Impact Assessment
Risk Mitigation Strategies
Qualitative Analysis
Quantitative Analysis
Risk Impact Analysis
29
Risk Impact and Probability Analysis
Impact Cost Time Quality
Very Low
Manageable by exchange against
Internal budgets
Slight slippage against internal
targets
Slight reduction in quality/scope, no
overall impact
Low
Require some additional funding
from Institution
Slight slippage against key
milestones or published targets
Failure to include certain ‘nice to
have’ elements
Medium
Requires Significant additional
funding from Institution
Deley affects key stakeholders – loss
of confidence in the project
Significant elements of scope for
functionality will be unavailable.
High
Requires Significant reallocation of
Institutional funds (or borrowing)
Failure to meet key deadlines in
relation to academic year or strategic
plan
Failure to meet the needs of a large
proportion of stakeholders
Very High Increases threaten viability of project Delay jeopardizes viability of project
Project outcomes effectively
unusable
30
Impact analysis is a tool the
assess the level of risk on the
project/ company. We have
listed down three broad
criteria's and the risk impact
associated with them. You
can alter them as per your
requirements.
Risk Impact & Probability Analysis
Impact
Assessment
Schedule Cost Performance Probability Of
Risk Occurring
3
Large slip to key milestone of
contractual importance
Large increases in total cost
Major shortfall in operational
performance
>50%
2
Small slip to key milestone of
contractual importance
Significant increase in total
cost
Minor shortfall in operational
performance, which impacts
upon the customer
5-10%
1
Small slip to an internal
milestone
Small increase in total cost
Minor shortfall in operational
performance, which does not
impact upon the customer
5-10%
0 No impact on schedule No increase in total cost
No impact on operational
performance
<5%
31
Impact & probability analysis
is another tool to assess the
level of risk on the project/
company. We have listed
down three broad criteria's
and the risk impact as well as
probability associated with
them. You can alter them as
per your requirements.
Risk Mitigation Strategies
Technical Risks Cost Risks Schedule Risks
Emphasize team support and avoid stand-
alone project Structure
Increase the frequency of
project monitoring
Increase the frequency of
project monitoring
Increase project
manager authority
Improve problem handling and
communication
Improve communication, project goals
understanding, and team support
Select the most experienced
project manager
Increase the frequency of
project monitoring
Increase project
manager authority
32
This strategy is used to
reduce the adverse effects of
risk. We have listed down the
three categories of risk and
also the strategies to be
opted to manage the risk
levels. You can alter these as
per your requirements..
Risk Mitigation Plan
Category Identified Risk Mitigation Plan
Client
Management
Miscommunication with sponsor/ client regarding
project requirement and expectations
Update client more frequently along the way with
project progress
Server
Server is down which causes project to be
slightly delayed due to application not able to
load
Perform periodical check on server status
Technical
Popular web browsers or bootstrap may get an
update that will discontinue support for features
used in our development as we using responsive
bootstrap. This will lead to changes in
development plan and will delay our progress
Monitor any updates on popular web browser
and / or bootstrap and make sure all UI design
works as intended on updated web browsers or
responsive bootstrap
33
Once you decide on the
risk mitigation strategy
then you plan to
implement the same.
Below is the table wherein
you can list down the risk
identified and the
mitigation plan to curb the
same.
Qualitative Risk Analysis
Impact 1 2 3 4 5
Probability Negligible Minor Moderate Significant Severe
(81-100)%
Low
Risk
Moderate
Risk
High
Risk
Extreme Risk Extreme Risk
(61-80)% Minimum Risk
Low
Risk
Moderate
Risk
High
Risk
Extreme Risk
(41-60)% Minimum Risk
Low
Risk
Moderate
Risk
High
Risk
High
Risk
(21-40)% Minimum Risk
Low
Risk
Low
Risk
Moderate
Risk
High
Risk
(1-20)% Minimum Risk Minimum Risk
Low
Risk
Moderate
Risk
High
Risk
Each threat and opportunity will be further looked at for quality of data available and the risk ratings imparted
Project Risk (Threat And Opportunity) Matrix
Any Risk with a probability of over 80% will be treated as a fact and will be addressed in the Project Management Plan and not in Risk management. Risk
Threshold( which risks move forward) in the process and which one will be
34 This technique helps in
assessing the probability of
risk event occurring and its
relative impact if it does occur.
Using the table below you can
assess the risk level
associated with the project.
Quantitative Risk Analysis
Risk Title &
Description
Resp Due Date Cat. Rating Prob. Impact
Total
Score
Mitigation
Actions
Contingency
Plan
Cost Risk
Insufficient
funds to
support the bid
ABC 5/31 Cost High .80 4 3.20
Find a partner
to help share
costs
Borrow money
from the bank or
investor to fund
the effort
Schedule
Risk
Insufficient
resources to
complete work
on time
BMC 6/1 Sched. Low .55 4 2.20
Borrow
additional
proposal staff
from another
division
Hire additional
proposal staff or
consultants
Risk Score = Probability * Impact Risk Probability values are between 0.1 (Remote Chance) – 1.0 (Certain)
Risk Score values are between 1-4 (with 4 being the highest risk) or red,
yellow, green, blue.
Risk Impact values are between 1 (insignificant) - 4 (Unable to meet objectives)
35
This technique helps in
assessing the probability
of risk event occurring and
its relative impact if it does
occur. Using the table
below you can assess the
risk level associated with
the project.
Risk Management Lifecycle Process Icons Slide
Risk
36
This is a representative image, and
should be replaced by your own image.
Just right click and replace image.
Coffee Time 15
Minutes
Coffee Break
37
Additional
Slides
38
Column Chart
0.5 0.8 1
1.6 1.9 2 2.4 2.8
3.4
1
1.5
2
2.5
3
3.5
4
5
6
0
2
4
6
8
10
2010 2011 2012 2013 2014 2015 2016 2017 2018
Expenditure
In
($
Billions)
Years
Product 01
Product 02
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
39
Donut Pie Chart
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
50%
Product 01
70%
Product 02
80%
Product 03
40
Stacked Bar
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Jul
Jun
May
Apr
Mar
Feb
Jan
Product 01 Product 02 Product 03
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
41
Stacked Area - Clustered Column
Product 01
Product 03
Product 02
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
0
1
2
3
4
5
6
7
8
9
10
2015 2016 2017 2018
42
Mission
Vision
Goal
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Our Vision
43
Name Here
Designation
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Name Here
Designation
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Name Here
Designation
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Name Here
Designation
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Our Team
44
Goal 01
Goal 02
Goal 03
Our Goal
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Financial
$225 Million
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Minimum
$554 Million
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Maximum
$345 Million
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Medium
46
Business Puzzle
vs
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Male
60%
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Female
40%
47
Finance
30%
30%
20%
10%
10%
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Risk Management Lifecycle Process Powerpoint Presentation Slides

  • 2. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Content Risk Management Lifecycle ▪ Your text here ▪ Your text here Introduction ▪ Risk Management- Introduced ▪ Types of Risk ▪ Risk Categories ▪ Identify Risk Categories Procedure for managing the Risk ▪ Risk Planning ▪ Risk Identification ▪ Risk Assessment ▪ Risk Monitoring ▪ Risk Tracking Stakeholders Engagement ▪ Risk Appetite ▪ Risk Tolerance Tools & Practices ▪ Risk Impact Analysis ▪ Impact &Probability Analysis ▪ Risk Mitigation Strategies ▪ Qualitative Analysis ▪ Quantitative Analysis 2
  • 3. Risk Management Lifecycle Develop Risk Management Plan Risk Management Lifecycle Risk Management Close-Out This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 3
  • 5. Risk Management- Introduction Minimize Monitor Control Probability and/or impact of unfortunate events Maximize Assessment of Risks Identification of Risks Prioritization of Risks Realization of Opportunities Resources 5
  • 6. Types of Risks (1/2) Demand Governance Access to Services People Regulatory Strategic Planning Processes Financial Economical Ethics & Values Business Interruption Technology Socio- Political Stakeholder Relations Emergency Response Infrastructure Environment External Risks Internal Risks Strategic Operational Enablers Listed below are various types of internal and external risks. You can add/ delete the risk types as per your requirements 6
  • 7. Types of Risks (2/2) ▪ Cost overrun ▪ Operational controls ▪ Poor capacity management ▪ Supply chain issues ▪ Employee issues incl.Fraud ▪ Bribery and corruption ▪ Regulation ▪ Commodity prices ▪ Demand shortfall ▪ Customer retention ▪ Integration problems ▪ Pricing pressure ▪ Regulation ▪ R & d ▪ Industry or sector downturn ▪ JV or partner losses ▪ Debt and interest rates ▪ Poor financial management ▪ Asset losses ▪ Goodwill and amortization ▪ Accounting problems ▪ Macroeconomic ▪ Political issues ▪ Legal issues ▪ Terrorism ▪ Natural disasters Strategic Financial Hazard Operational 7 Below are four broad categories of risk and the various factors associated with the same. You can modify them as per your needs
  • 8. Risk Categories Product Design System/ Software Manufacturing All Other Project Management Quality Product Performance Data Accuracy Assembly Consumer Service Team Work Quality System Design Security Tools Environment Product Cost Sigma Levels Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here 8
  • 9. Identify the Risk Categories Risk level Profitable Growth Low Price Develop New product Leverage Technology Risk Score by Risk Category Risk Category Financial Financial Operational Operational Strategic Strategic Risk Sub Category Funding Capacity Capacity Availability Customer Retention Demand Shortfall Likelihood 2 3 3 4 5 5 9
  • 11. Stakeholders Risk Appetite Medium High Low Medium High Low Impact Impact Within Risk Appetite Exceeding Risk Appetite Forming Risk Appetite 11 Obtain an estimate of the risk appetite of the shareholders with the help of the below bar graph. This will help in assessing the acceptable risk level
  • 12. Risk Tolerance (1/2) Very Low Very High 0.7 0.2 0.1 0.9 0.5 Cardinal Scale (example) Low Moderate High Insignificant increase <10% cost increase 10- 20% cost increase 20- 25% cost increase > 25% cost increase Insignificant fall in schedule <7% schedule slippage 7-10% schedule slippage 10-15% schedule slippage 15-20% schedule slippage Insignificant scope decrease Minor areas of scope affected Major areas of scope affected Reduction unacceptable Project end item is useless Barely noticeable degradation Only demanding applications are affected Reduction requires approval Reduction unacceptable Project end item is unusable Schedule Scope Quality Cost Ordinal Scale (example) 12 Estimate the Risk tolerance level of the stakeholders on the basis of the below mentioned criteria. You can modify these as per your requirements
  • 13. Likelihood Impact Business continuity problems Supplier default Loss of key partnerships IT problems Poor project management Product or service quality Loss of key managers This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Risk Tolerance (2/2) 13 Below is a heat map showing the risk tolerance limit of the stakeholders, where the redline shows the boundary between risks that are acceptable & those that are not
  • 14. Procedure Risk Planning Risk Register Risk Identification Risk Assessment Risk Monitoring Risk Tracking 14
  • 15. Risk Management Plan Type of Risk Outcome Existing risk treatment actions in place Rating Proposed risk treatment actions to mitigate risk Additional Resources Target Date Person Responsible Strategic risk Performance Deterioration Proper assessment of underlying strategies 2 Detailed understanding of the market Your Text Here 31/4/2018 John Smith Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here Your Text Here 15 Below is the template to list down the plan to manage the types of risks expected by the company
  • 16. Risk Register Type of Risk Description of Risk Probability Impact Risk Reduction Strategy Contingency plans Risk Owner H M L Perf. Cost Time Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here Text Here Text Here Text Text Text Text Text Text Text Here Text Here Text Here 16 Maintain a risk register to keep a close track of all the risks faced by the company and their impact on the company performance
  • 17. Risk Identification (1/2) Terminate Treat Tolerate Transfer Consequences Likelihood 0 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 17 This graph shows the likelihood and impact of risk on the company and the strategy which the company might opt to mange the risk. You can alter this as per your
  • 18. Risk Identification- Example How Long Can You Do Without? Impact of Doing Without? Vulnerabilities? Contingency in case of a disaster? Equipment (IT only) 5 days After five days no way to schedule production or track orders No UPS/ generator., MD hardware, SPOF SME Use paper reports for 5 days then go manual for as many members as possible Facility 0 days No production, potential for bankruptcy, IT non- existent Metal building, flood zone, poor maintenance, no perimeter security , door lock broken Look for warehouse space, attempt to salvage equipment and restart operation, file bankruptcy Personnel 0 days Degraded operations, low service levels Too many SPOF Best effort shifting of available staff, temps Raw Materials 30 days before new deliveries None until on hard exhausted Single supplier relationship Search for alternatives supplier Transportation System 30 days in 2 days out No suppliers No deliveries Location, design of entrance None Utilities 0 hours/power 0 hours/water Extrusion shuts down, lines cleaned, waste collected and prepared for grinder, IT non- existent Single power feed, no generator or backup water supply None Vendors (Sourcing) 4 hours No call center Mercy of vendor Being in-house 18 We have given an example of identifying risk in the below table, you can alter the fields as per your needs
  • 19. Risk Identification (2/2) Identify Risks Cost • Budget Exceeded • Unanticipated Expenditure Resources • Team is under-resourced • Materials shortage • Machinery unavailable • Industrial Action • Skills gap Environmental • Bad weather results in re-work • Weather delays progress • Adverse environmental effects occur • Environmental approvals not complied with Time • Schedule overruns • Tasks omitted from Schedule • Opportunity to compress Schedule Communication • Poor communication (Stakeholder dissatisfaction) • Positive & timely communications (positive publicity) Scope • Scope creep • Scope poorly defined • Project changes poorly managed 19 This is another way of identifying the types of risk associated with a project basis different types of factors like cost, time, resources etc. You can list down the risk associated with all/ some of these factors as per your requirements
  • 20. Risk Assessment Probability Impact Impact High (5) • Major uncertainties remain • No or little prior experience or data • Infrastructure and/or resources not in place • Performance, quality, cost or safety impacts resulting in major redesign and program delay Medium (3) • Some uncertainties remain • Some experience and data exist • Infrastructure in place but under-resourced • Performance, quality, cost and/or safety impacts resulting in minor redesign and schedule adjustment Low (1) • Few uncertainties remain • Significant experience and data exist • Infrastructure in place and fully • Performance, quality, cost and safety requirements met within planned schedule Consequences Likelihood of Occurrence Likelihood of detection 1. No. direct effect on operating service level 2. Minor deterioration in operating service level 3. Definite reduction in operating service level 4. Source deterioration in operating service level 5. Operating service level approaches zero E. Probability of once in many years D. Probability of once in many operating months C. Probability of once in some operating weeks B. Probability of weekly occurrence A. Probability of daily occurrence A. Detectability is very high B. Considerable warning of failure before occurrence C. Some warning of failure before occurrence D. Little warning of failure before occurrence E. Detectability is effectively zero Risk Scoring System Low High 1 3 5 R Show stopper High 5 5 15 25 O Significant risk 3 3 9 15 Y Proceed with caution Low 1 1 3 5 G No concern Risk Rating Guide 20 We have listed the framework for assessing the risk level. You can use the same for risk assessment
  • 21. Risk Assessment (contd..) Risk Scoring Results Insignificant Minor Moderate Major Catastrophic Likelihood 1 2 3 4 5 - - - - - A. Almost Certain - - - - - B. Likely - - - - - C. Possible - - - - - D. Unlikely E. Rare - - - - - Extreme Risk Immediate Action where senior management get involved High Risk Management responsibility should be specified Moderate Risk Managed by specific responsible person Low Risk Managed by routine process Consequences 21 On the basis of the framework, you can obtain the risk score and determine its likelihood of occurrence
  • 22. Risk Analysis – Simplified Format Risk Items (Potential Future Problems Derived from Brainstorming) Likelihood of Risk Item Occurring Impact to Project if Risk Item Does Occur Priority (Likelihood * Impact) New operating system may be unstable 10 10 100 Communication problems over system issues 8 9 72 We may not have the right requirements 9 6 54 Requirements may change late in the cycle 7 7 49 Database software may arrive late 4 8 32 Key people might leave 2 10 20 22 Below is the simple version of analysing the risk level on the basis of the mentioned parameters. You can alter these values & parameters as per your requirements
  • 23. Risk Analysis- Complex Description of Risk Control Measures (Detail any existing Controls) Risk Analysis Additional Control (Detail additional to be implemented Controls) Risk Analysis(with additional controls) C L Risk Rating C L Risk Rating Step 1: Consider What is the consequence of the hazard occurring. Consider what is the most possible consequence with respect to work Extreme Critical Major Minor Regulatory Non compliance Major non compliance Warning Minor non compliance Safety at work Sickness Casualty First aid Medical treatment Step 3: Calculation Risk 1. Take Step 1 rating and select correct column 2. 2. Take Step 2 rating and select correct row 3. 3. Use the risk score where the two ratings cross on the matrix below. H = High, S = Serious, M = Medium, L = Low Step 2: Consider Likelihood What is the likelihood of the hazard consequences occurring in Step1 Almost Is expected to occur in most Certain Circumstances (once per year) Likely Will probably occur once (every 5 year) Possible Event might occur at some time (10years) Unlikely/ Rare Event expected to occur only in exceptional circumstances (20+ years) Likelihood 23 Below is a complex version of analysing the risk level. We have listed the steps to be followed in calculating the risk and its certainty. Using these steps you can estimate the risk level associated with your project/ company.
  • 24. Risk Response Plan Negative Risk Positive Risk Mitigate Avoid Transfer Accept Exploit Enhance Share Accept Responding to Risk 24 There are many ways in which you can respond to the risk levels. We have listed down below both the negative & positive risk response ways. You can choose any as per your requirements.
  • 25. Risk Response Matrix Probability 0 10 20 30 40 50 20 40 60 80 100 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Avoid Transfer Retain Retain ▪ Weather Delays ▪ Different Site Conditions ▪ Unrealistic Schedule ▪ Design Changes ▪ Labor Productivity ▪ Defective Work ▪ Equipment Failure ▪ Labor dispute / Strike 25 You can also show the risk response with the help of graph showcasing the probability of risk and the risk response associated with the same.
  • 26. Risk Control Matrix Key Process Number Text Here Text Here Process Text Here Text Here Risk Number Text Here Text Here Risk Text Here Text Here Control Objective Text Here Text Here Control Number Text Here Text Here Control Description Text Here Text Here Control Owner Text Here Text Here Process Narrative Text Here Text Here Control Category Text Here Text Here Control type Text Here Text Here Primary Secondary Text Here Text Here Control Frequency Text Here Text Here Design Assessment Text Here Text Here 26 Prepare a risk control matrix to have a close tap on the risk related measures you have intended to take. The below table helps you to keep a log of the control measures you have decided to take to manage the risk levels.
  • 27. Risk Tracker (1/2) ID 1 2 3 4 5 6 7 8 9 10 11 12 Description of risk Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Impact Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Risk Response Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here High Level Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Risk Owner Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Nates Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here 27 Below is the template which could be used to track the risk factors and how we are planning to overcome the same
  • 28. Risk Item Tracking (2/2) Risk Items Monthly Ranking Risk Resolution This Month Last Month Number of months Inadequate Planning 1 2 4 Working on revising the entire project plan Poor Definition of Scope 2 3 3 Holding meetings with project customer and sponsor to clarify scope Absence of Leadership 3 1 2 Just assigned a new project manager to lead the project after old one quit Poor Cost Estimates 4 4 3 Revisiting cost estimates Poor Time Estimates 5 5 3 Revisiting schedule estimates 28 Below is the template which could be used to track the risk factors and the progress we have made so far.
  • 29. Tools & Practices Probability & Impact Assessment Risk Mitigation Strategies Qualitative Analysis Quantitative Analysis Risk Impact Analysis 29
  • 30. Risk Impact and Probability Analysis Impact Cost Time Quality Very Low Manageable by exchange against Internal budgets Slight slippage against internal targets Slight reduction in quality/scope, no overall impact Low Require some additional funding from Institution Slight slippage against key milestones or published targets Failure to include certain ‘nice to have’ elements Medium Requires Significant additional funding from Institution Deley affects key stakeholders – loss of confidence in the project Significant elements of scope for functionality will be unavailable. High Requires Significant reallocation of Institutional funds (or borrowing) Failure to meet key deadlines in relation to academic year or strategic plan Failure to meet the needs of a large proportion of stakeholders Very High Increases threaten viability of project Delay jeopardizes viability of project Project outcomes effectively unusable 30 Impact analysis is a tool the assess the level of risk on the project/ company. We have listed down three broad criteria's and the risk impact associated with them. You can alter them as per your requirements.
  • 31. Risk Impact & Probability Analysis Impact Assessment Schedule Cost Performance Probability Of Risk Occurring 3 Large slip to key milestone of contractual importance Large increases in total cost Major shortfall in operational performance >50% 2 Small slip to key milestone of contractual importance Significant increase in total cost Minor shortfall in operational performance, which impacts upon the customer 5-10% 1 Small slip to an internal milestone Small increase in total cost Minor shortfall in operational performance, which does not impact upon the customer 5-10% 0 No impact on schedule No increase in total cost No impact on operational performance <5% 31 Impact & probability analysis is another tool to assess the level of risk on the project/ company. We have listed down three broad criteria's and the risk impact as well as probability associated with them. You can alter them as per your requirements.
  • 32. Risk Mitigation Strategies Technical Risks Cost Risks Schedule Risks Emphasize team support and avoid stand- alone project Structure Increase the frequency of project monitoring Increase the frequency of project monitoring Increase project manager authority Improve problem handling and communication Improve communication, project goals understanding, and team support Select the most experienced project manager Increase the frequency of project monitoring Increase project manager authority 32 This strategy is used to reduce the adverse effects of risk. We have listed down the three categories of risk and also the strategies to be opted to manage the risk levels. You can alter these as per your requirements..
  • 33. Risk Mitigation Plan Category Identified Risk Mitigation Plan Client Management Miscommunication with sponsor/ client regarding project requirement and expectations Update client more frequently along the way with project progress Server Server is down which causes project to be slightly delayed due to application not able to load Perform periodical check on server status Technical Popular web browsers or bootstrap may get an update that will discontinue support for features used in our development as we using responsive bootstrap. This will lead to changes in development plan and will delay our progress Monitor any updates on popular web browser and / or bootstrap and make sure all UI design works as intended on updated web browsers or responsive bootstrap 33 Once you decide on the risk mitigation strategy then you plan to implement the same. Below is the table wherein you can list down the risk identified and the mitigation plan to curb the same.
  • 34. Qualitative Risk Analysis Impact 1 2 3 4 5 Probability Negligible Minor Moderate Significant Severe (81-100)% Low Risk Moderate Risk High Risk Extreme Risk Extreme Risk (61-80)% Minimum Risk Low Risk Moderate Risk High Risk Extreme Risk (41-60)% Minimum Risk Low Risk Moderate Risk High Risk High Risk (21-40)% Minimum Risk Low Risk Low Risk Moderate Risk High Risk (1-20)% Minimum Risk Minimum Risk Low Risk Moderate Risk High Risk Each threat and opportunity will be further looked at for quality of data available and the risk ratings imparted Project Risk (Threat And Opportunity) Matrix Any Risk with a probability of over 80% will be treated as a fact and will be addressed in the Project Management Plan and not in Risk management. Risk Threshold( which risks move forward) in the process and which one will be 34 This technique helps in assessing the probability of risk event occurring and its relative impact if it does occur. Using the table below you can assess the risk level associated with the project.
  • 35. Quantitative Risk Analysis Risk Title & Description Resp Due Date Cat. Rating Prob. Impact Total Score Mitigation Actions Contingency Plan Cost Risk Insufficient funds to support the bid ABC 5/31 Cost High .80 4 3.20 Find a partner to help share costs Borrow money from the bank or investor to fund the effort Schedule Risk Insufficient resources to complete work on time BMC 6/1 Sched. Low .55 4 2.20 Borrow additional proposal staff from another division Hire additional proposal staff or consultants Risk Score = Probability * Impact Risk Probability values are between 0.1 (Remote Chance) – 1.0 (Certain) Risk Score values are between 1-4 (with 4 being the highest risk) or red, yellow, green, blue. Risk Impact values are between 1 (insignificant) - 4 (Unable to meet objectives) 35 This technique helps in assessing the probability of risk event occurring and its relative impact if it does occur. Using the table below you can assess the risk level associated with the project.
  • 36. Risk Management Lifecycle Process Icons Slide Risk 36
  • 37. This is a representative image, and should be replaced by your own image. Just right click and replace image. Coffee Time 15 Minutes Coffee Break 37
  • 39. Column Chart 0.5 0.8 1 1.6 1.9 2 2.4 2.8 3.4 1 1.5 2 2.5 3 3.5 4 5 6 0 2 4 6 8 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 Expenditure In ($ Billions) Years Product 01 Product 02 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 39
  • 40. Donut Pie Chart This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 50% Product 01 70% Product 02 80% Product 03 40
  • 41. Stacked Bar 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jul Jun May Apr Mar Feb Jan Product 01 Product 02 Product 03 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 41
  • 42. Stacked Area - Clustered Column Product 01 Product 03 Product 02 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 0 1 2 3 4 5 6 7 8 9 10 2015 2016 2017 2018 42
  • 43. Mission Vision Goal This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Our Vision 43
  • 44. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Our Team 44
  • 45. Goal 01 Goal 02 Goal 03 Our Goal This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 45
  • 46. Financial $225 Million This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Minimum $554 Million This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Maximum $345 Million This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Medium 46
  • 47. Business Puzzle vs This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Male 60% This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Female 40% 47
  • 48. Finance 30% 30% 20% 10% 10% This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 48
  • 49. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Mind Map 49
  • 50. Bulb & Idea This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 50
  • 52. TARGET This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 52
  • 53. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Magnifying Glass 53
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  • 55. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. About Us 55
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  • 58. Address: # street number, city, state Contact Numbers: 0123456789 Email Address: emailaddress123@gmail.com Thank You 58