Contributed on September 2, 2016

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Risk Management-Presentation

Transcript

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– Why number of companies were facing
problem today?
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– Good risk management
Corporate Governance
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What do you mean by good risk
management?
Reducing
Eliminating
Risk
Return
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What do you mean by good risk
management?
Reducing
Eliminating
Risk
Return!
So good risk management is about knowing
How much risk you want to take or able to take
and then making sure process is in place
to manage it out that acceptable level.
Starting Point! Risk Strategy
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*Set Risk Strategy
– Directors
*Corporate Strategy
– Directors
*Risk Attitude
– Directors
– Shareholders
– Other Shareholders
*Risk Capacity
Resource available to take risks
Risk Appetite
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Risk Embedding
– Driving the risk strategy
throughout the organization.
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Identify Risks
Measure + Priorities
Design Possible Solutions
Select + Implement
Monitor Result
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Identify Risks
-SWAT/PEST Analysis
-Brainstorming
-Questionnaires to staff
-External Consultant
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Types of Risk
-Strategy Risk -Operational Risk
-Business Risk : Inherent Risk -Control Risk -Detection Risk
-Financial Risk
IdentifyRisks
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Financial Risk
-Credit Risk
-Market Risk
-Liquidity Risk
-Currency risk
-Interest rate Risk
Transaction risk
Translation risk
Economic risk
IdentifyRisks
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Legal Risk/Compliance Risk
Political Risk
Technology Risk
Competitors !
Health & Safety risk
Environmental Risk
Fraud Risk
Intellectual Property Risk
Reputation Risk
IdentifyRisks
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Measure + Priorities Risks
What makes the risk important?
Impact = Cost = $
Likelihood = Percentage chance = %
_
∑
Identify
Risks
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Design Possible Solution of Risks
ransfer on to somebody else.
void the risk all together.
ccept the risk and get on with it.
Identify Risks
Measure +
Priorities
educe the risk somehow to an acceptable level.
How
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Design Possible Solution of Risks
Identify Risks
Measure +
Priorities
educe the risk somehow to an acceptable level.
.
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DesignPossibleSolutionofRisks
Identify Risks
Measure +
Priorities
Good weather
Bad weather
Chance
Return from
Ice-Cream
Return from
Umbrellas
50%
50% +200 +1000
+1000 +200
Ice-Cream: Average return = (50% x 1000 )+ (50% x 200) = +600
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DesignPossibleSolutionofRisks
Select + Implement
Monitor Result
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Identify Risks
Measure + Priorities
Design Possible Solution of Risks
Select + Implement
Monitor Result
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