TOPIC-1.ppt
- 1. RISK ASSESSMENT WITHIN THE FRAMEWORK OF RISK IDENTIFICATION, RISK ANALYSIS, AND RISK EVALUATION
- 3. Learning Outcomes • Describe the principles of risk management. • Define risk as use in risk assessment. • Discuss the importance of risk identification to risk assessment.
- 4. RISK ASSESSMENT RISK IDENTIFICATION • Find the risk • Recognize the risk • Describe the risk. RISK ANALYSIS RISK EVALUATION Comprehend the nature of risk and its: • Characteristics • Sources • Consequences • Likelihood and scenario • Support fact- based and science- based decision. RISK MANAGEMENT
- 5. DEFINITION OF TERMS RISK MANAGEMENT • Coordinated activities to direct and control an organization w/ regard to risk.
- 6. DEFINITION OF TERMS RISK • Usually expressed in terms of sources, events, consequences, and likelihood, is the effect of uncertainty on objectives.
- 7. DEFINITION OF TERMS EFFECT • A deviation from the expected which can be positive, negative, or both and can address, create, or result in opportunities and threats.
- 8. DEFINITION OF TERMS OBJECTIVES Have a different aspects and categories and can be applied at different levels.
- 9. Risk Management Principles a. Integrated b. Structured and Comprehensive c. Customized d. Inclusive e. Dynamic f. Best available information g. Human and cultural factors h. Continual improvement
- 10. Risk Assessment and Risk Identification RISK ASSESSMENT Is the overall process of risk identification, risk analysis, and risk evaluation, should be conducted systematically, iteratively, and collaboratively, drawing on the knowledge and views of stakeholders.
- 11. Factors in Risk Identification a. Tangible and intangible sources of risk b. Causes and events c. Threats and opportunities d. Vulnerabilities and capabilities e. Change in external and internal context f. Indicators of emerging risks g. Nature and value of assets and resources h. Consequences and their impact on objectives i. Limitations on knowledge and reliability of information j. Time related fators k. Biases l. Assumptions m. Beliefs of involved
- 12. Types of Risk Compliance Risk Control Risk Hazard Risk Opportunity Risk
- 13. Compliance Risk/Mandatory • Involve government-mandated licenses and business permits and requirements.
- 14. Hazard /pure Risk • Risks that can prevent and deter the achievement of company’s goals, missions, and objectives.
- 15. Control Risks • Risks that can cause uncertainty or doubt about the ability to achieve the company’s goals, missions and objectives.
- 16. Opportunity Risks • Risks that usually deliberately sought or embraced by the organization specifically for the future long term success of any organization.
- 17. RISK ANALYSIS
- 18. Learning Objectives • Describes the Principles of risk Analysis. • Summarize the factors to consider in risk analysis. • Discuss the importance of risk analysis to risk assessment.
- 19. Definition of terms Risk Analysis An analytical process to provide information regarding undesirable events in which it estimates probabilities and expected consequences for identified risks.
- 20. Definition of terms Event Is the occurrence or change of a particular set of circumstances. Note: An event can have one or more occurrences and can have several causes and several consequences.
- 21. RISK ASSESSMENT AND RISK ANALYSIS • As discussed in the Philippine National Standard International Standard 31000:2018 (PNS ISO 31000:2018), The purpose of risk analysis is to comprehend the nature of risk and its characteristics, where appropriate, the level of risk.
- 22. Factors to Consider in Risk Analysis • Likelihood of events and consequences. • Nature and magnitude of consequences. • Complexity and connectivity. • Time-related factors and volatility. • Effectiveness of existing controls; • Sensitivity and confidence levels.
- 23. Threat and Vulnerability Assessment and Risk Analysis • Risk is a function of the values of threat, consequence, and vulnerability. • It is inevitable then, to conduct initially threat and vulnerability assessment. • Threat assessment as consideration for the full spectrum of threats.( Renfroe and Smith, 2016)
- 24. Vulnerabilit y Combination of the attractiveness of a facility or an event as a target and the level of deterrence and/or defense provided by the existing countermeasures.
- 26. INTERPRETATION OF THE RISK RATINGS RATING CATEGORY DESCRIPTION VERY HIGH The risk is totally unacceptable. Immediate measures must be taken to reduce these risks and mitigate hazards. HIGH The risk is unacceptable. Measures to reduce risks and mitigation hazards should be implemented as soon as possible. MEDIUM The risk may be acceptable over the short term. Plans to reduce risks and mitigate hazards should be implemented in future plans and budget. LOW The risks are acceptable. Measures to further reduce risk or mitigate hazrads should be implemented in conjunction w/ other security and mitigation upgrades.
- 27. RISK EVALUATION
- 28. Learning Outcomes • Describe the principles of risk evaluation. • Summarize the factors to consider in risk Analysis. • Discuss the importance of risk evaluation to risk assessment.
- 29. Definitions of terms Risk Evaluation A process that I used to compare risk analysis results with risk criteria in order to determine whether or not a specified level of risk is acceptable or tolerable.
- 30. Definitions of terms Risk Evaluation matrix A management tool w/c accurately assess business exposure, based on the frequency and severity of identified potential risks.
- 31. Risk Assessment and Risk Evaluation The purpose of risk evaluation to support decisions. Risk evaluation involves comparing the results of the risk analysis with the established risk criteria to determine where additional action is required.
- 32. Action that lead to decisions: • Do nothing further • Consider risk treatment options. • Undertake further analysis to better understand the risk, • Maintain existing controls, and • Reconsider objectives.
- 33. Severity of Risk Potential Reduce risk Avoid risk Retain risk Transfer risk High High Low Frequency of risk potential
- 34. Risk Retention-where both the frequency and severity of risk is low, risk is often retain. Risk transfer- where the frequency of risk potential is low, but the severity of a potential incident is high. Risk reduction- where the severity of potential risk remains low, but the overall frequency of risk is increasing business operators need to consider ways of reducing their exposures. Risk Avoidance- where frequency and severity of risk potential are both high, business operators should consider cancelling a program or activity.
- 35. “Safety and security don’t just happen, they are the result of collective consensus and public investment. We owe our children, the most vulnerable citizens in our society, a life free of violence and fear.” ~ Nelson Mandela~
- 36. Thank you and hope you learned!