Risk management
- 2. RISK MANAGEMENT NEED & IMPORTANCE – M A PARRY
- 3. RISK SOURCES 1. Financial uncertainties 2. Legal liabilities 3. Technology issues 4. Strategic management issues 5. Accidents 6. Natural disasters
- 4. RISK MANAGEMENT The process of identifying, assessing and controlling threats to an organization's capital and earnings
- 5. IMPORTANCE OF RISK MANAGEMENT 1. It’s a holistic risk management strategy; 2. The formidable task is to then determine "which risks fit within the organization's risk appetite and which require additional controls and actions before they are acceptable.
- 6. ENTERPRISE RISK MANAGEMENT 1. It’s a holistic risk management strategy; 2. The formidable task is to then determine "which risks fit within the organization's risk appetite and which require additional controls and actions before they are acceptable.
- 7. TRADITIONAL VS ERM 1. Siloed vs holistic 2. Dirt four-letter word word vs strategic enabler 3. Reactive vs proactive 4. Temporary vs permanent approach 5. managing risk is a collaborative, cross- functional and big-picture effort. In erm 6. Transactional vs transformational role 7. Risk averse vs risk seekrs
- 8. RISK MANAGEMENT FOR DIFFERENT COMPANIES 1. Financial vs non-financial 2. Quantitative vs Qualitative 3. Easy vs hard to manage 4. Chief risk officer vs none 5. Can be modeled vs not-modelable
- 9. RISK MANAGEMENT PROCESS 1. Identify the risks. 2. Analyze the likelihood and impact of each one. 3. Prioritize risks based on business objectives. 4. Treat (or respond to) the risk conditions. 5. Monitor results and adjust as necessary.
- 10. CATEGORIES OF RISK 1. strategic risk (e.g., reputation, customer relations, technical innovations); 2. financial and reporting risk (e.g., market, tax, credit); 3. compliance and governance risk (e.g., ethics, regulatory, international trade, privacy); and 4. operational risk (e.g., IT security and privacy, supply chain, labor issues, natural disasters).
- 11. CATEGORIES OF RISK- II AS PER PAUL KIRVAN 1. People risk; 2. Facility risk; 3. Process risks; 4. Technology risks
- 12. RISK MANAGEMENT STANDARDS AND FRAMEWORKS 1. COSCO Framework 2. ISO 31000 Framework
- 13. increased awareness of risk across the organization; more confidence in organizational objectives and goals because risk is factored into strategy; better and more efficient compliance with regulatory and internal compliance mandates because compliance is coordinated; improved operational efficiency through more consistent application of risk processes and control; improved workplace safety and security for employees and customers; and a competitive differentiator in the marketplace BENEFITS OF RISK MANAGEMENT
- 14. QUESTIONS AND ANSWERS THANK YOU