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  1. Submitted To: Submitted By: Seminar On Risk Management
  2. Content  What is Risk Management  Why do Risk Management?  Why is it important?  Objectives of Risk Management  Project Management  Principles of risk management  Process  Types of Risk Management  Advantages of Risk Management  Disadvantages of Risk Management  References
  3. What is Risk Management?  Risk management encompasses the identification, analysis, and response to risk factors that form part of the life of a business. Effective risk management means attempting to control, as much as possible, future outcomes by acting proactively rather than reactively.  Therefore, effective risk management offers the potential to reduce both the possibility of a risk occurring and its potential impact.
  4. What is Risk Management?  Risk is an uncertain event that may have a positive or negative impact on the project.  Risk Management is the process of identifying and migrating risk.
  5. Why is it important?  Risk affects all aspects of your project – your budget, your schedule, your scope, the agreed level of quality, and so on  Increase probability of positive event.  Reduce the occurrence of negative event.
  6. Objectives of Risk Management  Protecting employees from accidents that might result in death or injury  Due attention given to cost of handling risks.  Effective utilization of resources.  Maintaining good relations with society and public.
  7. Project Management • Poor control of design changes • Problems with team members • Poor control of customer changes • Poor understanding of the project manager's job • Wrong person assigned as project manager • No integrated planning and control • Organization's resources are overcommitted • Unrealistic planning and scheduling • No project cost accounting ability • Conflicting project priorities • Poorly organized project office
  8. Principles of risk management  be an integral part of organizational processes  be part of decision making process  explicitly address uncertainty and assumptions  be systematic and structured process  be based on the best available information  be tailorable  take human factors into account  be transparent and inclusive  be dynamic, iterative and responsive to change  be continually or periodically re-assessed
  9. Risk Analysis Process……  1. Identify existing risks Risk identification mainly involves brainstorming. A business gathers its employees together so that they can review all the various sources of risk. The next step is to arrange all the identified risks in order of priority. Because it is not possible to mitigate all existing risks, prioritization ensures that those risks that can affect a business significantly are dealt with more urgently.  2. Assess the risks In many cases, problem resolution involves identifying the problem and then finding an appropriate solution. However, prior to figuring out how best to handle risks, a business should locate the cause of the risks by asking the question,
  10. Risk Analysis Process…….  3. Develop an appropriate response Once a business entity is set on assessing likely remedies to mitigate identified risks and prevent their recurrence, it needs to ask the following questions: What measures can be taken to prevent the identified risk from recurring? In addition, what is the best thing to do if it does recur?  4. Develop preventive mechanisms for identified risks Here, the ideas that were found to be useful in mitigating risks are developed into a number of tasks and then into contingency plans that can be deployed in the future. If risks occur, the plans can be put to action.
  11. Types of Risks
  12. Response to Risks  Avoidance: A business strives to eliminate a particular risk by getting rid of its cause.  Mitigation: Decreasing the projected financial value associated with a risk by lowering the possibility of the occurrence of the risk.  Acceptance: In some cases, a business may be forced to accept a risk. This option is possible if a business entity develops contingencies to mitigate the impact of the risk, should it occur.
  13. Advantages of Risk Management  First: the awareness of possible threats. This also includes identification of possible loss of assets. In that way, the company can have back up funds in case they lose an asset.  The manager can also highlight how easier it will be to determine if a system can still operate in case these threats occur.  Risk management can also transform threats into a threshold to new opportunities.  When a threat occurs, it’s important for all departments to come together and deal with it. Risk management prevents a department from isolation. Everyone is involved because everyone is aware. Imagine the impact a company will have to their clients if they show oneness in the midst of perplexity.
  14. Disadvantages of Risk Management  Cost. This module will shell out cash from the company funds. Companies will have to improve their cash generating tactics in order to provide means for training and maintenance for something that hasn’t happened yet.  Training. The time spent for development and research will have to be allocated for training to ensure proper execution of risk management.  Motivation. Employees
  15. References   
  16. Thanks

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