Risk management (1)

1
Risk Management

• Theory and practice

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2
Risk

• Risk is the risk of adverse outcome of the
  expected event, i.e. measurable probability of
  loss or loss of profits in any sphere of human
  activity.
• Structural characteristics of risk
• Event uncertainty (probability)
• variation of outcomes

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3
Risk management

• Risk management - targeted actions to limit or
  minimize risk in the system of economic
  relations.
• Benefits of risk management
• Increases revenue by reducing risk costs and
  increasing the efficiency of your organization 's
  funds
• Can improve an organization 's ability to use
  speculative risk profits to recover from adverse
  net risk realization
• Enables management to plan for the future with
  greater confidence and predictability

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4
Objectives and objectives of risk management

• The ultimate goal of management risk is to make
  the most profit with an optimal profit-risk ratio
  acceptable to the entrepreneur.
• Tasks risk of management
• Continuous monitoring of the external and
  internal environment of the enterprise to
  identify risk factors
• Establishment and implementation of a risk
  management programme (including the use of risk
  assessment methods, risk analysis, and measures
  to reduce and eliminate adverse health events)
• Assessment of the effectiveness of the risk
  management system (acceptability of the use of
  certain methods, consideration of new trends
  dictated by the market)

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5
Process risk of management

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6
Standards risk of management

• A number of standards have been developed
  worldwide to help organisations implement risk
  management systematically and effectively. These
  standards seek to establish a common view on
  frameworks, processes and practice, and are
  generally set by recognised international
  standards bodies or by industry groups. Risk
  management is a fast-moving discipline and
  standards are regularly supplemented and updated.
• Standards are normally voluntary, although
  adherence to a standard may be required by
  regulators or by contract.
• In practice, the following risk management
  standards are commonly used
• ISO 31000 2009 - Risk Management Principles and
  Guidelines
• IRM/Alarm/AIRMIC 2002 - A Risk Management
  Standard - developed in 2002 by the UK's 3 main
  risk organisations.
• ISO/IEC 310102009 - Risk Management - Risk
  Assessment Techniques
• COSO 2004 - Enterprise Risk Management -
  Integrated Framework
• OCEG "Red Book" 2.0 2009 - a Governance, Risk
  and Compliance Capability Model

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7
Rules risk of management

• You can 't risk more than equity can afford
• You have to think about the consequences of risk
• You can 't risk a lot for a small one
• A positive decision is taken only in the absence
  of doubt
• Negative decisions are made in case of doubt
• You can 't think there 's always only one
  solution. There may be other solutions

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