2. TOP QUESTIONS What is risk management? Who uses risk
management? How risk management is used?
3. What is Risk Management? It is the name given to a logical
and systematic method of identifying, analyzing, treating and
monitoring the risks involved in any activity or process.
4. Risk An expression of possible loss in terms of severity and
probability
5. Who uses risk management? Both public and the private
sectors covering a wide range of activities or operations. These
include: Finance and Investment, Insurance, Health Care, Public
Institutions, Governments
6. What are the benefits of risk management? More effective
decisions Efficient allocation of resources Increased standard of
accountability Creativity & innovation in management capacity
to manage competing issues Flexibility in meeting objectives
Transparent decision making
7. Why Do We Manage Risk? Project problems can be reduced as
much as 90% by using risk analysis Positives: More information
available during planning Improved probability of success/optimum
project Negatives Belief that all risks are accounted for Project
cut due to risk level
8. How do we manage risk? There are steps which serves as
generic guide for any organization, regardless of the type of
business, activity or function. There are steps in the RM
process
9. Risk Management Rules Integrate into planning Accept no
unnecessary risk Make risk decision at a proper level Accept risk
if benefits outweighs the cost
10. Summary Risk Management is a systematic way of thinking
Risk management process increases awareness of hazards and risk
involved in an operation
