Risk Identification
Risk Identification is very important I'm any business line. In as much Board of Directors and Senior management wants to increase shareholders value they need to identify risks that are inherent in the business sectors and design proper strategies to mitigate such risks.
Two types of risk that is general to most organisations are pure risk and speculative risk. Pure risk is a type of risk which the outcome is either bad or worse, hence BOD and senior management needs to identify and assess how they can manage and reduce the impact to the barest minimum while speculative risk is a type of risk where the outcome can either be good or bad. Organizational needs to know how to position it's self for this type of risk so they can maximize the outcome in their favor.
#Strategies#Finance#Risk
Occupational and Process Safety Lead || MSc Eng. Process Safety and Loss Prevention, University of Sheffield, UK || HSEQMS Master, University of Pisa, Italy|| FSE Exida (SIS) || NEBOSH IGC.
Risk Management vs. Resources.. Where to Draw the Line?
#Risk management requires resources - Reducing and controlling risks takes time, money, people etc. It's not free.
#Diminishing returns - The initial risk reduction steps may be fairly cheap and easy. But further reducing risk gets progressively more expensive.
#Incremental costs go up - Each additional increment of risk reduction costs more than the previous increment.
#Distribute resources wisely - Given limited resources, the smart strategy is to allocate them in a way that maximizes the overall risk reduction.
#Prioritize and choose battles - Decide when spending resources on risk reduction is worthwhile, and when it reaches a point of diminishing returns.
#Risk Criteria help guide decisions - Having clear risk management criteria helps determine where to devote resources and where to hold back.
The core ideas are around efficiently allocating limited resources to mitigate risks.
#CCPS#Kletz
In ageing industrial facilities, risk management and resource allocation are critical aspects that can't be overlooked. Regular inspections and maintenance can prevent equipment failure, leaks, fires, and other safety incidents, but they come at a cost. The smart strategy is to allocate resources in a way that maximizes overall risk reduction while prioritizing significant risks. Having clear risk management criteria helps determine where to devote resources and where to hold back. By identifying potential risks and efficiently allocating resources, organizations can ensure the safety and longevity of their facilities while also managing costs. #CCPS#Kletz#RiskManagement#ResourceAllocation#IndustrialFacilities
Occupational and Process Safety Lead || MSc Eng. Process Safety and Loss Prevention, University of Sheffield, UK || HSEQMS Master, University of Pisa, Italy|| FSE Exida (SIS) || NEBOSH IGC.
Risk Management vs. Resources.. Where to Draw the Line?
#Risk management requires resources - Reducing and controlling risks takes time, money, people etc. It's not free.
#Diminishing returns - The initial risk reduction steps may be fairly cheap and easy. But further reducing risk gets progressively more expensive.
#Incremental costs go up - Each additional increment of risk reduction costs more than the previous increment.
#Distribute resources wisely - Given limited resources, the smart strategy is to allocate them in a way that maximizes the overall risk reduction.
#Prioritize and choose battles - Decide when spending resources on risk reduction is worthwhile, and when it reaches a point of diminishing returns.
#Risk Criteria help guide decisions - Having clear risk management criteria helps determine where to devote resources and where to hold back.
The core ideas are around efficiently allocating limited resources to mitigate risks.
#CCPS#Kletz
Assessing the probability and potential impact of risk is the key to effective travel risk management and increased organisational resilience.
Risk Intelligence Manager Andrew Devereux comments in Strategic Risk on how Healix utilises risk engineering to identify, manage, and prevent threat to organisations and their travelling workforce.
Read our commentary in the full article 👉 https://hubs.ly/Q02BRgH90#RiskManagement#Intelligence#TravelRisk
Managing Risk by Using Thresholds and Appetites!
Risk threshold indicates the point at which action is necessary to mitigate unacceptable risks, whereas risk appetite indicates the total amount of uncertainty that an organization is willing to accept.
Effective communication, the avoidance of negative effects, and decision-making are all aided by clearly defined risk appetites and thresholds.
To take advantage of growth opportunities and reduce losses, strike a balance between risk tolerance and risk management procedures.
#riskmanagement#riskappetite#risktolerance#rmp
The importance of Risk Committees lies in their ability to shift from reactive risk management to a proactive stance. The role of Risk Committees is more crucial than ever. These committees elevate financial institutions from survival to strategic prowess.
Some of the roles of the risk committees are:
✔ Risk Committees have an executive responsibility by ensuring that risk management becomes an integral part of the executive's proactive strategy.
✔ Risk Committees contribute to fostering a culture that emphasizes the value of a risk-based approach in the organization.
✔ Risk Committees help assess the organization's risk exposure and assist to strategize accordingly.
✔ Risk Committees stay attuned to changes in the operating environment, assessing risk management procedures accordingly.
✔ Risk Committees evaluate the potential risks of new ventures and initiatives, aligning business objectives with risk appetite.
✔ Risk Committees enable informed and strategic decision-making.
To learn more on the roles of risk committees, join us on Wednesday, 30th August 2023 at 5:00PM - 6:00PM. The training is free and hosted on zoom by trainer Caroline Gathii, GradIRM
Register here: https://lnkd.in/eNJ83zFz#riskmanagement#Sacco#bestsacco#riskcommittees#risktraining#consulting#nairobi.
Risk Triggers
When managing risk, and if you established risk triggers or warning signs to track the occurrence (or near occurrence) of risk event.
Don’t ever never ignore the triggers; monitor and track them carefully, always keep your eyes on them, this could be your risk management killing point.
#Risk_Management
🔟x Top 25 Thought Leader and CX Influencer, International Keynote Speaker, Author, & Certified Trainer who delivers exceptional experiences through cultural transformation
🐪 Hump Day Humor 🤣
The "No Risk It, No Biscuit" edition
Effectively managing risk is a critical success factor in any business.
👨🏽💻 Analyzing the data at hand to inform the decision-making process...
⚖️ Carefully weighing potential risk versus anticipated reward...
😰 Determining risk tolerances of key stakeholders - including customers and employees...
🎭 Acting (or not acting) based upon the likelihood of net positive ROI...
All of these are factors of a mature, deliberate, and informed approach to risk management.
Of course, in the absence of such operationalized rigor with respect to risk management...
⛔ There's always the "no risk it, no biscuit" approach.
ℹ️ P.S. Let me know how that works out for you.
Photo credit: Gary Larson of FARWORKS INC#humpdayhumor#humpday#humor#humour#ROI#risk#riskmanagement#riskreward
One key benefit of proactive decision-making in risk management is the ability to identify and assess risks before they escalate into crises. By regularly monitoring economic indicators, market trends, and industry developments, companies can stay ahead of potential disruptions and take preemptive actions to mitigate their impact. This proactive stance enables businesses to address risks in their early stages when they are more manageable and less likely to cause significant harm.
By being alert to emerging trends and market shifts, businesses can position themselves to seize competitive advantages and expand into new markets. This proactive approach to risk management not only protects against downside risks but also enables companies to leverage favourable conditions to drive growth and innovation.
#RiskManagement#ProactiveDecisionMaking#SCGN#CorporateResponsibility#CorporateGovernance#Business#Governance#BusinessConsultant#SCGNNigeria
DOCTOR OF LITERATURE (D.Litt), MBA(TQM & Ops), B.Com, FIACM, DBA(HR), DIATM, Certified Lead Assessor & Examiner, Certified Master Practitioner NLP (Ex a VP@WNS, GM@VFS)
Risk probability is the likelihood or chance that a particular risk will occur. It's a key concept in risk management, used to assess how likely it is that an identified risk will happen and cause an impact.
Risk probability is often expressed as a percentage or a probability value between 0 and 1, where:
- 0 indicates no chance of the risk occurring.
- 1 indicates certainty that the risk will occur.
Assessing risk probability helps organizations prioritize risks, focusing on those that are most likely to occur and potentially cause significant harm or disruption. It's often combined with the potential impact of the risk to determine the overall risk level (risk severity).
■ JOHNSON GEORGE ■
~>Trainer, Auditor: Management Systems, Soft Skills, Business Excellence
》Email: [email protected]#risk#probability#riskmanagement#certainty#disruption#likelihood#severity#impact#risklevel#riskassessment
Exposure to third-party risk has exploded in recent years.
Read this Gartner guide for risk leaders to avoid costly third-party incidents and manage risk effectively.
#GartnerLegal#ERM#Risk