What is Risk Management?Human Activity which integrates:1.Recognition of Risks2.Risk Assessment3.Developing strategies to manage it4.Mitigation of risk using managerial

resources.

StrategiesTransfering the risk to another party.

Avoiding the risk.

Reducing the negative effect of the risk.

Accepting some or all of the consequences of a particular risk.

Traditional Risk ManagementsStemming from physical or legal causes such

as:1.Natural disasters2.Fires3.Accidents4.Death5.Lawsuits

Ideal Risk ManagementA priorization process.

Risks with the greatest loss and the greatest profitability are handled first.

Risks with lower probability of occurence and lower loss are handled in descending order.

Objective of risk ManagementReduce different risks related to a

preselected domain to the level accepted by society.

It may refer to numerous types of threaths caused by the environment, technology, humans, organizations and politics.

Intangible and Relationship Risks Risk that has a 100% probability of occuring

but is ignored by the organization due to a lack of identification ability.

Appears when ineffective collaboration occurs.

Steps in the Risk Management Process1. Identification of risk in a selected domain of

interest. 2. Planning the remainder of the process.3. Mapping out.4. Defining a framework for the activity and an

agenda for identification5. Developing an analysis of risk involved in

the process6. Mitigation of risks using different resources.

ExerciseRisk avoidance

Risk Reduction

Risk Transfer

Risk Mitigation plan

Implementation