Risk-Management-presentation for cooperatives

Power point presentation for risk management for cooperatives

1. RISK M ANA G E M E N T 1 Principles of Risk Management 2 Types of Risks 3 Assesing/Identifying Risks 4 Risk Management Plan 5 Adaptation and Mitigation of Risks

2. RISK DEFINED risk is the possibility of something bad happening . HAZARD --  RISK -- DISASTER IN BUSINESS: is the exposure of a company or organization that will lower its profits or lead it to fail

3. Business risk is influenced by a number of different factors including: Consumer preferences, demand, and sales volumes Per-unit price and input costs Competition The overall economic climate Government regulations

4. Types of Business Risk : Strategic Risk Compliance Risk Operational Risk Reputational Risk

5. Risk management principles: 1. Ensure risks are identified early 2. Factor in organizational goals and objectives 3. Manage risk within context 4. Involve stakeholders 5. Ensure responsibilities and roles are clear 6. Create a cycle of risk review 7. Strive for continuous improvement

6. Ways to identify risk Brainstorming. Brainstorming is a technique used to generate a large number of ideas for the solution of a problem.  It can be used to identify risks, ideas and solutions to issues by using a group o team members or subject matter experts. Typically, a brainstorming session is structured so that each participant’s ideas are recorded for later analysis.

7. Ways to identify risk ROOT CAUSE ANALYSIS This process is a critical feature of any safety management system because it enables answers to be found to the questions posed by high risk, high impact events—notably, what happened, why it occurred, and what can be done to prevent it from happening again

8. Ways to identify risk SWOT analysis is a strategic planning tool that can be used by startups to assess risk. It is a simple, yet powerful, tool that can provide insights into a company's strengths, weaknesses, opportunities, and threats. A swot analysis can be used to identify and assess the risks associated with a startup business

9. Identifying risks with SWOT Analysis in 3 steps Identify SWOT factors Perform a  Brainstorm  and capture: Strengths (Internal Focus): business or project characteristics that give advantages over others. Weaknesses (Internal Focus): business or project characteristics that give disadvantages relative to others. Opportunities (External Focus): elements in the environment that could exploit advantage for the business or project. What Opportunities can I have because of my Strengths? — these will be your positive risks. Threats (External Focus): elements in the environment that could cause trouble for the business or project. What Threats can I have because of my Weaknesses? — these will be your negative risks.

10. STEP 2. 2. Analyze SWOT factors In a group, analyze the strengths, weaknesses, opportunities, and threats: combine the similar ones and discard the unnecessary brainstorm ideas collected in the step before. prioritize all factors in rank order .

11. STEP 3. Identify risks based on SWOT factors After completing the SWOT analysis, add in your risk register: • Positive risks: all identified opportunities. • Negative risks: all identified threats.

12. SAMPLE RISK REGISTER

13. Ways to identify risk RISK ASSESSMENT MATRIX A risk assessment matrix, also known as a Probability and Severity or Likelihood and Impact risk matrix, is a visual tool depicting potential risks affecting a business. The risk matrix is based on two intersecting factors: the likelihood the risk event will occur and the potential impact the risk event will have.

14. HOW DO YOU APPROACH RISK TREATMENT?

15. What Is a Risk Management Plan? defines how your project's risk management process will be executed. That includes the funds, tools and approaches that will be used to perform risk identification, assessment, mitigation and monitoring activities.

16. What Is a Risk Management Plan? also called a “risk mitigation plan” is a well-defined document that tells how to deal with specific risks and what management actions must be taken against those risks in order to mitigate or remove threats to the project tasks and outcomes.

17. RISK ADAPTATION AND MITIGATION So, there are several potential responses to handle risks. The response you choose will be based on the probability of the risk happening and the gravity of its impact on a project . Avoid:  The best thing to do with risk is to avoid it! If you can easily prevent it from occurring, it definitely won’t hamper your project. Mitigate : Now, if you can’t avoid risk, you sure can mitigate it. This means taking some action against it that will do as little damage to your project as possible . Transfer:  Another great way to deal with a risk is by transferring it to a third party. The best and most common process to do this is to buy insurance. Accept:  Finally, if nothing works then you have to accept it. By accepting the risks, you can work in the direction to treat them in advance.

18. RISK MANAGEMENT PLAN TEMPLATE