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l~mullaD1.eiD.la'll ~iisk-~ riUn.dlllIm~illtiliil ~isk Hff~~ts ih~ s®~ieii~r as iii 'I.~h[)I'B. I"mt 'I.

\I'~rully 'llit~in t~e curn~rnl lofi [nle inl~ii\i'i~~iliil .. ~xllllil1lpll~: Risk l[]if enl~il'iOin menvtiliil p®ll~u~ion ( :Systlflm:ail:ic l'islk )

IPa:rlicula:r risk -~BlI·tiliiinIS t® urnra irndi'~id!!li'l'IIOII' ®rn~ CUml~i'lln~ 101' 11111 inldillstwy .. U.niSys~Bmati~ wisk~ ilii risk t'sh1cih ICHln be di~IB1'S ifie~ ilii,,~ray.

:Specu'l~aUue ~ijslk- is a wis~ faced ~y e~Ii1iI"~ b!!l:sil~ess IDlr im,IIB:stIJi'S. tl%i'ltlI1pl'B:: IpJ'nfiit [)W II[isS 8111 husaesses ~a~e sp~~illililiiti~ti risk of ~aJwrnili1~ jpl'o'iiit IOlf Ilos S ..

IPul1e risk-Tn a ~illNl risk i~~ Nlsndt willi ~e ilii lass .. ~. risk nf Ih~\I'ingl ilii ~iliirmllluIIIIBjfhlm;t lnss ®f diliiiilii in IClDlm~il!t~w

:SI1i3Ie.gic: andl opelralJionallrjisk :St~tIBgic I"i~k ~Bwtiliiins i® furtilli13 d'B~iision Iili'l'~irn!91 [)r ihe 100r~iliil1ililiiti®n His ~ ®f iilliliiP~l'iowii'l~e Bnl~ii'iOin nrnBnvtiliil iliil1iliil~sis (p'ESn. Rilllliliiti®m1shi~s t'sffih Cl!Istrulil1l~i"s. s !!I~~li~rs. iin~st®ws iliii'IB H'ls® pari or S;kiliit~~ic wisk

IOp:er;lllionall riSk i~ HI d1aJY in ~i'lI~ I'iisk faciirng IOirgiliiiuililiiihm1ll1 w(l!!ItiirnlB ,opBrathm .. liE is l'Il~lollknl[)'lllil ss IP r®~es s risk MiliiGhin B ~wea~dlo~lm,.llablO1' sil'ike etc. los s lofi ~ey IP BrSml. ~Bcihnoll[],g~ tliiil~u res, Ihmimiliiiil ei'j'{)W

lfilancii:al risk - iisth~ ~isk ujf ihe ciliipiiall s~rilldil!re IO~ ~h.B 100r~iliil1ililiitll[)lI1. b:alil1lplles ®f sueh wis~ ~iliin be Ihig'h.Br d~~t fn 'BqUliiliy rH~i[]. iilliliiP~lupl'illl~eINow~iill~ capitall arndl,olll'erka~in~.

R'isk ujf adl~®i"se m.ol'Ol®Ii1IEl n~s iirn IElilldl'mge rates ls i'Ef&WI~B~ tu as CUnelCll1i:sk

El<Icih:angB wiliite at tiimle of Icmrtwiliif:t and ~im.B ®i slBijllBmB~ft is Ir~iBI'wed ln as Ir;llsa,c:lion ~ijsk ]lriliirnslliliitimll uf f®reigrn assets imo lrucal cl!Il'l'iern~y iliit ~Bli'lr eilld is i'EfeN~B~ tn ss TlranslBli:on risl!:

Ilclolo:mic: Imisk -~lrnlil1lesti~ IC!!II'rency liIl[]l/elil1lernt ~Ol i'n~Bril1a[imlall C!!lWi'iBniC~. t's~1cih canl afl\Bd fhB 'ClDimpemi~erness ®i umpmis H n.dl'B:~P®rts of lhe cminl~iliirl~r

Ilnlerlesl. r;lle: Irjisk- Mmmm~ilt iill iillter;B:st rates H nJ~ its w~IIi'llted wisk urn the Clolil1lpa~l ~ixeo iiltilll~B:St. H nJ~ Im'sel' fllexi~le rates

IMa:lik.e:t Irjsk- ~.d~ilii"se iiI1;[)~ilim.Bn~s in~ilii~Ul® ®f assets .. lln®sTIIiI1I®flts.IPI'®~®rty et~ ICr'edil, risik-ru®htloll' fl'lils tIOllmilii~~ IP:a~liI1Ient on lume I E:ilii~ oe~t

IliQuidilllrjsk- l~iliisn ®!!UI[}~IS aw~ m.DIrethiliiill iflfl[}~I. cash fllIlw Irislk 1l::!!Iwrnrnt Iriliiii[) iliil10 Ili~!!Ii~iitw l'aUOI slhm~'ingl adl~~i"s~ ti'Em~ .. Cash s~®rtag;El:s

Innancii:al re,Gor,dls ;aldl r,epOlrlinQI nisl,- Missti'l~Bmewt irnH~filiiiil~i1l11Ire~®rtii~g. trlmil-weclJI~dirn~ lofi assets iliirn~ ~il'lbiil:itiilEls 'imllb 0 OIb m aCClOl!!lnrts

Study Nlotes/June 20110- Waqar Anwar Chaudry

1

lie.galll andl pol~licial ~ijsk· chl'mginlg Ilaws ilud IPrunti~~IIBn~iwll~iinle~rts has iml~l'Ic:i IDlnl ~hrngirn~ IPDln~ies

(echnO~DQi:ea~1 riisk

o I,lqsical damage: lliiisk· ~isk ID~ dll1JtlJ1~~®t® iiUifrasbucfiul'El l~iN. ~~Iat~r IB:tC

o IOa.131 :andl slIstem in~egritl' ~iisk· l'nClDlrre~t irn~U!t ®f inlim'liIlatiiorn. cl'In IIBlaid to ~\IW®~~~ IP 1'®~ElS siirng a nd [)l!Ii~Ul[

o Ilr,a.ud risk· Cwilintl iin®I'Iliilg thEl Ulse nf CllIlnpl!liElws! p~s,simlg IcmrfimIBn~'ia'l iilllflJl~tlJ1i1tirunl. El~liewirn~ ffal~B elinpll®'~BiB:s'

o Iintiernel, risk,·, ~1~DlbIIBm lllii:~ ~®~rn!El~tMty .'i'iil'1uses. inl~wl!Isi[}n wis~

o 10eniiai of seniee ~ijsk· H~d~irn!gl t~® ~~rebsiiElllriih a iinB:ssa~e Ilf o@rni~11 ®f ser'~iCIE

IHe:allh and safeb risk· Elinp~®yIBes s'uftel~irn!glk®~ i Illrmss OI]!El to Il'I~~ ID~ he~H~ and s~f\iltyf~cil:ity l U.nh~gi®illi~~IIl~k c®Uiditi[)~1 anllO m!!J s,afet.'~ IinflaSillWes

I'roperl" risk- rnatlJ1~ge ®r JdlB:sb~uctiDln to ~W(]P@~ ol!le fn ,im~ emll'ir®iIIliIliGntial tnlElIM trl~iUlr,a'l d lsaslers Ill' Iel'rIll'iist ,aritlla.dk

(r,adiloQI risk

o 1'lqsicalll1'jisk·, ~'[)ru~s st®IIBn Ill' lest in tll'l1Jnsiit ®r d®CUllinimts ilCiClDltlIIpl'm~irn~t~re ~®ods g!Ji~S ,alsti',aIW

o (r,ade ~ijsk·, Ll!IstllllnBr refl!lsingbID a~~ept t~1fl !9;Dlrud'S d'UIEl to sl!I~-stlnrn,aJ"d qill~liity_

o 10isI1upiion risk· H®~lih mid saf®iv ~r®~II®lins. Drulinpl!ltel' ~rEl~~~IlWlnL striikl1l

ICos,1 :andl rlesourlcewlaSiage ~ijsl,·WiliiSil'lgEl ®f C(]ml~alnl~ II'gS'[}I!II'~®S ~y ~~~irng ~ig:hew IP r®~l!Irtllil1.B nt cesl emlpIID~i:leS inlfmlicieill~iEls IBilc ..

I'roduel, ~iisk· B~o I~B pUliaiiDlnIlDlr t~El pw(]dl]ct dm IDOl sl!lh-siarnd~i'idl qU1a1Iity .. lit l'Il~IDI ii~cll!ldi1l t~IB CIlStt® ICIDltlII~ElrnS ete DmlSlllmer

IR!eputaliion risk

'0 I'o:or' cUSIomer serui:cie '0 IlaUiurelo iiinnoll:I:e:

o I'o:or' e:lhics

Study Nloltes/June 20110- Waqar Anwar Chaudry

2

"Rmsk. is th.e ilil'~er;elillt. I!Incel1aililty iinll~ow~he f'l!Itl!lli'ewiiill be and Ihow~he Ibusiness: IliIbjectivElswim be IniI.e('

]Ihe IDlnl~ waybill ~~l'Ill 'r~'it~ the I!Inr'Blll'1inltw is bill incill!lde ii actihm~ in thB ~ll'IUlI1~nl~ IDlr :d'Bciisi®u ItlIIl'I~~nlg IP r®~~s s.tn fiillo tlh B r~~M ~illll'luC6 ~etltleeill oariirng a n,dl pW!lldeill~e. wis~ iiiI~O I'1m'll'lwds

Riisk assessltlllend is a ~w®ao tIBl~m~rhi~h ~[I~IIlI~es. l'iisk iio~n~ifi~atiml. rid mlOln'itIDdnlQ and riisk. IClDitllllil1ll!lrni~iflti®mLif1t1ei'iBflJl'6 we wi III u®t be o{lillll~ng S 6p'l'IraJtelw ~jJiit~ risk asses sltllO~nll: .. ~11'6ad~ iill ®!llr IP 1'~ruW :C:h;ap~BiI' (]~ ii~~B rnal c®~l1ti'iDlls ~~'IB Ihl'i~1] a S llIlHni~iBind dis CIlIS si®~ ah DU~ riisk ItlIIl'Inlagelil1l~~t ~r®~e~llIwes as ~\liB'111_ 1m t~iis riisk illilliiilllvsiis ,clilal~ew. ~~16 \jJiillllbB slDlll,I'ingl t~B qUBstb fw®m P'l'Ipew L_H b~iit and ~.sSl!lrl'lnCiB. ®ua wis~ lmailla~elil1lentt(] !9;Bt :a,u eXillm fucl!IS. ®U1 th~ 1iy~e (]f ql!lest~ml1l,1'lhic~ c®!lM ~e tl11lsted_

How tn i d mutiify ~' i sk

BV ha\l'in.~1 bl',aliniStIDJ~m~~lg sessrOlnI bIB:fu~!'iBn oimpar1lt1lll6i11tal hB'a dl eXe~!lthf"G staH :alnld ~ndew~all al!lo~t(]l' [i~1 a I'EHu'lar ~as iis

Miiilniiilg!Elm'Bn~ sh®ulld carl'Y IDU~ physrc,a'i inlS~BdiiIlnI nf CI[)~~iitiOin iill t~e t'mwk illi'iBraS ln id'B n~ify an'~ p®tewtil'lll wis~ :(Sll~ppery fll®®rs. !llnh'~giB nlic t'mwk ~®rndmrunls,. cash Ilyin.91 ®~en)

Chec~list

lillol!Istrv siaiistics ~epar1ltlllmlh

:di'l,l'isii(]~ anm

Nalfuulwal ~is:als~Bl'S. e~®rn(]lil1ic en nd iti®rns. p®liitic:a I :d'BiIl'ell[)pmIE~t:s

o n~ 6'~n:t t~a[ CI[)IlII~dI I'B'aid tn illiu®ther.. Fow e%l'I mple. ~h.B lOull:sta nl~ingl ~l'Il'al~mB ID~ ICiUiS~DmlfW ghllB rise t[) wisk ef 1n00nl-i'iBClDlIl'eI'Y

l'nill'esti~illt~ml1 oJ IBlIl'eiitbill find t~Bih' 11'®®t callis 68 end tn e!im~nll'r[e t~BiIil1l_ ~®r IB[l(l'IliI1Ip~e I~B'aiS(]rn fur l'i~l!Iidity wisl

E1l6id that ~l'IIS I~Bac hed a ~ertai~ leV'I1l!lt~at: reql!lil~B:S ilil1llil1.Bdiiat~ a~ti®~i_ ~@r eXl'Ilmple Drulil1lPGl~ies ~a~gt(] abide ~I~ Ic~ril'lin re~!lllai[)l'y IrGitnos in esse (]f ~Glillk bIOlrw(]~~!iimg_

EV6irri

ii~tiB r~6p6ndmuce

Irnellilii'~ ®r ~end~nlg iii ~6dsiil!l~ c:aln enlBd ®n'!~:a nilla~ilma'll'ifl11l, de'lill¥ iill imp'1151i1116irri~nlg iii pIDII~~y [)n! meltl :S®~il!wity Clmrtffib.lCiDll!Il~dlIIB\adl TI[) p®i®iitial ris~. iill lhe time ~e~n@.

Study NloteslJune 20110- Waqar Anwar Chaudry

ExtBirnal e'~B nTIS

Lea~ing IBlIl'emt

ii~oii~atlDrs

lremo:s a nd 11'®®t causes

Es~alari~[)n! tw~g~ews

3

Riisk wnii l~iII@ ls a Sti"a1lBg~ ~h,o~ pwi®ritizes riisk alcc(]l"dingl to its Ii keli h.OIl]d iliiil~ C(]I1ISe~l!Iel1l~es. T~is lop~r®ilii~~ tries to es:ialbillsht~e ®i'!g~n'iza~i(mo'lf®~iillS ItlII®rti (]111 thi5 I>i~k tlh,o~ Ih,oillethe h~~~ l'il~Bllli hn Old I[]f I[]CJCiU I'Wel1l~e aml~ hig~ ~tlII~a~t lrull'~aillilart~ml m!!lst hoillie lo,pp I'®priiiliite p®!icllls ~n IP'II3~e to ICI[]U n~Blr t~BI t~reill'i (]f riisll~eillei",o'IIIV linanl1agi5mIBn~ !!ISIBS Irnu~ riisk Iinlamll'll~elilUil1lt Sb',o~Bigliims ~~!Ihich loJ~B::

I. II'islk ilii!~[]lid'o nml

'2_ II'islktr'illnisfew

3.. II'islk iliiccept1liiiCe

4.. II'islk redl!lcti®11I

(T11esIEl1sm'altEl!giEls,m c'liIlilltr,1iI111 liisll!:. wililibe c'liIll'el~Eldl ilill tl1EllneOOlt clh'a;p~Elr Olil, IClillnmollililg l~i:Slk)1

IHIGH

I~us o~ slllIp;plier IiIfsmalli Sicale! land 11lI1il~liIlportan[

1111il,pl!lts

Loss of key c,ustlllmer EaiilurEi! llI,f 'the CIlI nIl,plillter" system

~oss 11iI~ suililr IliIr sipecialist: staff

I~oss 11iI~ salels m c'liImpEl~i~liIr' I~oss 11iI~ salels d~llIe!m macf';lil eCIii nOnllic clilndi~ililn

IHIIBHI

I:IIS,. QIUIAB'II,fll:IClfIIOHI

Study Nlot.es/June 20110- Waqar Anwar Chaudry

4

]Ihle risk c(I~seq!.leiU~es staglEltS iW~lio'llle the r!!lrlt~er fPl'a!Uil'l'iiml [)r allths h~~h pl~i[Jriitr.lIEl risk ~Oll' ~etBrlillin~ll~ t~El ~!.I(lf[miCH~illn 10~ l'i~El'ly lasses and t~Biil' ~ro'babillities

o ~~ a:;:ilinumn IP l'e~ic1iabIEl lass- ~(llciu'I;g~i~9 t~e linaxilil1lll1!in lass ffi t~El risl fifl,a~ElI'i(ll'izIEl:

o ~Mnilil1U1!in lass- \~I'~a~ CI[)!!II~d ~ethe liIli~~liIllUtlll ilinp~ct iil1l tlEl:r1tl11S ®f los 5 if the Irislk mimtl£l~ia'lile

o C:lh!a nt ElS (If m!a~itlll!llill- the Ilib'lih(l(l dl [)H~e linaxilil1lll1lin lass

o C:lh!a ne as (If min'ilil1l!!1lin- the Ili~eli h[)®d (If the tlIIinitlll!!lWl lass

IExallin;ple,:

]Ihle lCIDitlII~iliirn'~ e\l'ClI~ulal~es ilii ris ~ (If I'OISS of sales dUlle tn iiIlIClDI'® IElCIOln.Oltllli[! in~i[!iliii®rs_ ]Ihe risk tiIllanlClgetlilewt d'Elpa l'trniill1lt IEl~l'iliill!liit€ th~ risk of las s 10~ sH'les ~®!!I~ be as h~~h as * ilru tiIlliiUi®ni. if the SiliimiG d'ElPJ~El'SS€~ IEl,CIOIn:rutllli[! c~mditii®11I Clmill:imles,. t~e chances [)J t\lhich awe ~D%. \~hElI'e as t~e ri~lk (If I'mll cIJulld ~e HtS Imlt oES $ 4 liIlilllioll,. ffi €~®rn(lmic IClDlnldlii~ilm s[abilizlEl sotlile \~:h!arli t~El ~hiliiill~es (If \~:hich are qlru%_ Ihe wisk qUlrmi:ii~icati®iil hw t~e ~i~lm sce~iliil~iJ!] \~lol!!l1 d be:

,~Iilswer::

IRislk Ipli'ioriitf.: Ihigh,lli~~lli:hI]Dd alilol hI~hl impact. Riis~. qlulanl~ii"l1i~aU®Ui

~III the I!'iS ~ ~hatt has hee n i~E::nriiiiEl,dl assessed ~I.!mnriii~i~d. InEl'El,dltJID we u~s®lid'alted iirntIl ~ruw~~®lli[) (]f 1011'~iilllilati®n risks, fow :actii®11I :a~ s~I'l'Iieg[c IEli~liBIL ~11I~l!Ialll~Eli~lielll ef lhese pOI'fiOlll® andrl!llilllwiB ass essma n~ tllill :a'lll C(I tlIIe Ilmdew I"iisk ClmlSloll~~iliiU®11I

:S'IKE •• llIDIEIR:S aNI.IRI5IK

Study Nlotes/June 20110- Waqar Anwar Chaudry

5

:~halr,el1li1l(1ElIr'S:

SlhiEl'~hOI~dIB I' Il/ilm[S lI'et~rn (]III t~e~r iiilllles:i:liI1I~mt l~emalila!9rmli11lenl[shDUlh~evl.ll!!ll.ll~B:tllm~Dil.liI1I (]f wehmnl w~ellllElw it has fn bill i3i UIiIS'Il'Im pEl~DU~ IOJ' mlB:-~iIi11B I[!~pitlmll ~i3iiIilS~. S:IiIi3iwe~(]Mers Ci3iill effiBd C(]Ii11,pmlY IDIPIBJI'~timil by SB:II~ing shsres, IOJ' ~V welilll]il,i'i3i1 ®f manrag;Bmelilt ShaJ'e~ol~dIBI'SI,l'Ii3iiit a Ihi9rh.BI' p~li11lrum iiil ~ ICIDlmpl'lily ~~hlll~8 risk pi'iDllTIile ls IiIrgllii .. Ir~[]l'\mallyslh!are~®MElwl,I'fi3imS l'ffiuIWIIi inl1l~CIBiSS m iEi Iris~ flrElB: rata ef II'Elhmnl

1~lrrlil1ilidelr IIiII lilil:illilce

~I'1DlIl'i~ers oi fiilli3iillC~ aJweil~lciBdl ~~Iiitlh tha ~iQ~es[ risk off Ci!.9st[}ml~I' dBf~l!I~t ®mI billwlk 100l'Iu ohli3iine~_ Tlhewef®we t~B: ~anb; niB-Bdlt® ~BElP a vel1 vigi lalilt e'fB mil the CiDiliril~~ii'~ finra nJ~iiall ~Elwh]Wm!a n.CiB. 'B:spi1lcii3ill~ ~h.B wisk. adl'o1erse m(]llEllil1li1llilts in JdlBbrJi ~DI eqluity W13[ios; a n,dllli~!!I[d iit~ r,a~iDiS_ Tliiei'iB is :all~(] i3i wis~ thi3iHhe ICIDltlII~i3iill'~ \~'i III b B ml1i3~~e ln liIliil~t tne C(]'~Elnll'mts ®f a91'1B B tlIIElnds, wnicihi u!llM l'esluH. in ~nh~r ~Eluiiall [IrM~i'iB cwe~it hi~hElw iililtIBI'B:st C!hl'll'~es ow selll ®H [Ii tlile ~i'i[]pIBl1~_

ICredi~liIrs

CrEl~iit[jJrs a re fa ted ~\I'r~h ri~k silillillar in tlh a~ 10m final1ce ~w®vid m. H~,\\liB:l,i'erfiuElill~e ~wml'idlB rs 1[!13n s:t(]~ slupp'lyinglll'i3il,l'f m;at~l~ia'lt(] fhe c®mpra ny III~ich Cl[mM d L"i'iu1prJi 'DIP B 1'13[iml. fm tlilB II'ElC!O~-eI'y ®f iilts (]l!Itstalild~ill~ IbralllanCiB or c®I!III~h;b ,aIIIB~alllrElC!o~wse_

IEli1i1pllllil~e,es

EIi11I~I~D~ees i3ii'iB f,aclBd w[ttlilthe I"i~k [If ]ob s~c!ldy,. ~1'®IiIl'[]illi[]liI. rlse iilllsalal'Y, i3i"~ Ih.B'aH~ ,an~ SaflBty IB nl'llimmmem in ~'i1h~~ht~iilyl,l'l®rlk.

EIfnI~IID~®®S cantske illieti®~ll l'I~l'Iin,st ma nrag;Btlllellli: hW wgf~salt(] 'll(]~k,. siwiklB. a n~ S~s~®"si[]ln nf 0P®Wilti®1iI t~I'®~g~ IOJ' '1Iil:~®!llttr,aI~B l!I~liml.

ICl!lismlilters

CIUlSt[]l(llBrS ai'iBfl'l[!~d ~~Iiit~ ihe ri~k ®f InDrJi ~eU ililg ilile ql!l,all~t.y of ~rnods; illilll~SIBl'~iices as l'El~l!Ies:iEl~ (]I' rmt !9;B1ti:ingl it tilil1lel~ C!!Isiomers ea n lei3i'~B ®n:g,a nil!a~il:J n ir tlhBY a 1'81 IU n~alpp~ IllUh ~h,B ql!lallil:~ ®f !9;D OIds aad SIBl"1l'ices wlilidh CI[jJI!II~dI ~rin~ ~a~ I'IBpurJiEltiDlnforthe c®li11,pra ny _ []iII thiEl (]~hB r sld B thB CI[}IiI1I~ailly i~ filliced ~~Iit~ t~B: wis;~ nf bad JdlBb~s. (]1iI CI!IStiIDIIfn,B:r' inll'l~il'ityt(] \pray_

Wj(lEllrstilke!~liIlllder'S:

Tlhe s®cie'i~r art Il'Ili'~e iinid!!l~in~ ~(]'~~rlnmIB:mt ,amid ~w!iissl!lwe gl~DUlpS ~JHml~dI be cml1cel'lniildl wnl'lithe CiJli11,Pll'lnl~r ~i3S ICIDlrnl'i~!!ItlB~ tu thB society intlBl'lm (]f iills s®dalll res~®rnsibility Iun,der tIil81~s:~r ~~ililci~l8is alild ~[)®~ ICI[]lr~m'lltJB IcHiizlilIilS~~~ CiJlilel1l~t

~I'1BSS!llWe ~w(Jl!lpS can eXlBrlls IPlw~ssul'e I[]J~ c®liI1IpalilY iilil geUin:gl thirng ~[}iie iilil tlilEl iililt~I'1Bd of s®dei'f. !9;DI'Il!iil'1n tlIIB:ilt Ci3iil imp DiSe taxes and ~Elul'll~i~s fl'iDlm iII®mI-c![)liI1IlPllil'ln~e~lith ~lIIvil'®MliIlIilIiItallll~'r~ls alild I~BQl!llla~iDln.

CIDIIIITII:OIIIIRIGi 1:1:511

Study Nlotes/June 20110- Waqar Anwar Chaudry

6

Notes

~iis;k iaUr'iiblUlte.s;

Riisk ~rltl1l'i~!!It~s c:an O[)liI1Ifi ffiDliI1l iilllllillbiiill' lliIf Si()!!Iwu:es S !!Icih HIS:

o ~el'S(]rni3ll11iews

o N,a~iDlnllll inflllillel1l~es

o C'UHI!JI'all in~ll!Ielil~;es

o Slh!Er~h[)l~d'B I'S weql!J~wem.B n~s

o 0 W~ifllililifltioillifll inHuB~mB:S

IP,ElIi'SIIiIIil:al ~iews:: Uewe c:ail be d iff~i'EnJt ll'[B~'fS m~ riisl ~iflse~ IUpOU tne 'ilildiill'id'u'alll pi£lI"SlOlnmIRy .. IFor Sllillil1le iirndii'~id~!!Iall as s'B:ssinl~th® l'iisk ml~ mana!g;ililg j]he wis~ c(]lUlld ghmth®m sat'isfac:i[ml ifltt~e IB ndl [)f t~e ~ifly. ~~hi Ie ~Dlr lliIther iit ICIDUII~ ~B: simpl~ hlll@i3'1l'e risk nn iiEs m~inI. ~~'i'tlh.OIm n(l~i"g assessltlllenrii (lfII~ manag;Bmenri ®f it ..

INatilillllal1 ililfh!IElIilOesi: ln wisl c(]I!I'I~ IbiG tne ~®I~BI'illli111el1ltall p(]'I~~ies afll~ PIUIlBdiDlni[)l' ~isk ¥acllldl ~ ICIDlmpl'Ifllies,. IHeiflith iflrnd S~Bty eet. b'lI~e IPrlliliedi[)nistil1l.. b',a'~B IPDlliciilS; safe C:!!Is:i[)~~r lliIf c:asn iiUII ~alilb c(]I!IM b B some ex;ampIIB:s_

1!l:IiIJllliIll':al iilll~UElnCe,s

IFatallis~- ShD~'lS Inn Icomw®11 ®ll'ew ~is~. by hifl'~i~!9lris ~ malila~IB:rillBnJj IC 1!I1~l!Ire_ IHieill':arc!liIist. -Ihi'l"~!] hJm1lall pw(]~edlilli'Es fiillr rislk m~l1I~gIEltillBnli

Illrnldilllidlllialist.-they wislh t[) CI[)~liW(]lll~i:sl blJlt dlOlnI't Ih al~e defiued ~lliInc es Hlnldl pW(]Cedlilli'iBS IEgl3llitllliian- ©oroti'iD'll'iisk mll~ ~~'itlh II'islktralilsflBr

l[]rg:aliluzal1:iolilall infIIllIElIil.ces:: 1]i'i9~mil;a~i(] n'a'l siiZ!B. c(]mpl'Bociity. sl:Wl!lctl!Jl~B miE~B Clolil1lpalilies mlDiI'e s!!lslCiB,prliib~le to wis~_

~1~OIp B n,siity (tlBfII~eil~y) t[)tNi~~ rlsk for HI pB I'c:ei~ed dalilg'ElI' IC!DUlld I'1B:sluH iilil i'iBl~,a rds or ifl~d~Bnri:s. IH®~~rel/ElW IbUisiirnlB:SS tries to mirnilil1lize tlhe aC!l:Mernts ~V Ibl'llilan.ciililg Ibe!h~lti[)w b\lhich inc~lilldes I'is~ lIIlirn~lIIlizi3~iOIii tlhr®lill~h 1P001:i~i®s. ~1'®~edIillNS ifllil~ IP1'OPElW oecisiOin liIi1iflkiill~)

R:IIS,! MII.aGIEIMIEIHT'

Study Nlotes/June 20110- Waqar Anwar Chaudry

7

FrHmB~'m1Wk ID~ rlsk IiIllmml!9rElmJBln~ ~W C OSO iirncllill~es

o I n~BlIi'~all ~(]l1Iti~DIII IBnl1/irunmJBln~ - SIBEl iil1lmB rUl'Il cmrtli'(]11 hal1ld(Ju~

o DbJBdhl'® semil1~- s®Hinlg tlhm ICII'iiticH'1 SIUCiCiilSsfifld®li's. fllltlllrG slti"artBigiEl:s l'Ilnl~ plliflil1S. find t~iilnilinifliI1ifl~iiI1~

rislk ifli"mmdl tlilBlIin

o Ell'ElM idBinUiicHrliilJnl- s®® t~e CUl~I'Elnlt ~Gino(]l!It IpralgB [4]

o Riisk assess tlIIBl~l{ - S'BB tlilB Cl!lli'rtll1lt ha n~mrt [ Ii'~s~ ~1~Dfmng,. ~!!I8i~rtii~icatii!m H nrl Cl[m:;mll~~iliiU®I1I)

o Riisk rElS~mISlB:- ]AR~-[[tral1lsfJBr. iflccEl~aJncEl,.II'Bid~cEl fliI1~ iliilliDlid'anCiEl]

o CIOlnj]I'®ll'Icti~iti®s ®Ii' promdi!ll'®s- se@ iinltllill'inl'lll Icmml'®1 ~iEil1l~(]l!It

o I nrffiDIli'li1~tii[]11I a n,dl ICr[}tlIImIUNicati®il1- rap DiI'i~nlg mrr risk al1ldl iil1ltlB rnll'llil ICIOIn~Ii'(]lls

o r~[)niitrnr~ng- in~Elli'iniEil iliiill~it fillrn~timil allreaoy U'~BJ"e~ ~n ~nrt®li'~iilll timoR and inmBrnliliil CJ[ulll:ii'(]lls.

FrHmB~'m1Wk ID~ rislk l'IIrchitJB~tlllre Ib~ IIAI:

o A~~®~iiflrn~e ®~ ifl riisk ItlIIl'IInaJ~elin®il1t frHlinlBiwruli'k

o LlDItlillinitlilllEnt UII'OIin iGl<IBlElultii'l,l'El

o EstGi~~is ~tlII®wt ef risk 11'®s~runs B skar~Elgw

o Assi~nmlen{ ®i i'Es~®rns~~ilityhIDIi' risk linifliDa~~IiIlIBn~ ~1'®~®SS

o RIB:S(]I!II~ciil1l!91

o LlDItlillinl!ll1li~iliitiml al1l~ tI"l'Iinil1l!91

o R'Bil1lf®rciing rsk c!!lI~!!IIi'®thl~DI!!I~liIliIl!llinal1ll"eS'DUrce liIliG~hl1lis,1in

o r~ oniitrnr~ng (]f riisk.liI1ll'11nl'll~Bllinelli1t PI"ODB:SS

FrHm.B~·mli'k ID~ rislk liIl~ml!9rElIil1lBln~ ~w C liMA

o EstGi~~is ~Bd Ii'~S~ liIli'mag;B tlIIerni ~I~D UrPI aJn~ set ~®ifliis

o I d'Bnrtif~ rlsk a 1'®l'IIS

o U nda I's;iim~ iflil1d assess lhe seale (]f risk

o mB1l'®II[)~ risk II'BispnnSIB stIl'H~B!9IW

o I tlIIplelinllll1lt stll'HillBQlJ and :a1[]®eatlS lI"eslP OIn,siibiliitiB:S

o I tlIIplelinel1ltatii(]11I a nd Iinmlit®l~il1l!9I'D~ Icmlhls

o RIB1/~BiW Girn~ I~B~irne PI"OCiB:SS iill1IO 00 it :algaJin

11K IIIRIM/.IIRIMIC/,AIIRMlli'is~ liIlanrag;BmEli~i shnlldtams ef I~IK

o ]lhEl ®~g:alniiz,aliiDln s:i:li'm®~~c [}~jBicti'1l'®S

o Riisk assess tlIIBl~lis ( riisk a nall:~s~s. id®wtificHltii(]l1I. oes~riipti®mI al1lm IB:stiilil1,a~iDn)i

o Riisk re~[}li'thil~ ( tlilw®tat al1lo ID!P pnl·tmilit~BiS)

o lledslen

o Riisk tJrea~linel1lt

o RIB:sii~!liflll riisk tn'Biailin®l1It

o r~ oniitrnrinQ

Study Nlotes/June 20110- Waqar Anwar Chaudry

8

Notes

Canadlianl IraDlIB:W,OI1.

lii:s.

o l'd'B~m~in~ issues a nd s'Bttii~g ICiDln~B:rl

o ASS!BSsi~lg ~\'1iy riisk areas

o M'B,a,slul'ingll:il~BI:i~[]o dl a~ld iliWpad

o R:an'kingl wisl

o Settii~g dB:siired l'es!ulliIi:s

o IOewelOlpingl o~[ious

o Sele~[i~lg 11 s:[wirltegy

o 1IIi11Ipl'BtlIIeiitil1~ strahligy

o M,OInitIOiringl, IB1l'alliillatin~ ilii~O adjustiru~

AUSllr;alli:anl :an,d IHemell:and st~ud[uos ®~ ri~k ~iliirn~~em~nt

o C:lDitlll~lmi~ate and C(]ltlOl!I~t 0 hl':all~u'a~B tlile ris~.

o Es:tirl~llislil tlile ®~jec:ti~es 0 lreet t~IB risk

o IldlB~di~ lhe rlsk 0 MIOInitlOir 1Iind rEwiew

o A~all'~si1isthe l'iisk

I. I[]etendersl- fil'~s lii~e l[Jill risks, ~iII~ O!Il n~t ~~I:a:mt 1001 e~perimlB n~ ~iill~h_ They rElly ®mI trusted a ndl kied slolll!ltii(]~s

't_ Iprlil'~pe~~liIrs-wisk t;a'~il1l!91 iil'~. '1IIiliclil~l~illt tae nJoy ~Ni:altihl'iit~ and ii~nol\i'atii®~.t~!lstakirng slu'biSt;m~tiiall lI'islk

3.. Ana'llvsers:- t~efnl'ms ~~Ihi~~fiwst e'~(lI~U'a~B t~e si1lu'a~ion,. cal~B~u'IIIV ~I(m~led ~e~is iOlnl ~~Iiith Iil1l!!1clil fneus on ~~I~ucingl wislifhey ~1Iin ~e hmm ss ~[]m~I'aIi[)WS,. t's~icih ~ollll®III dh,ang;B Ib!!li ~®rn't iuiitiia~B thelil1l

4.. l~eal~ltlilrscthev dml't IiIlnl1l a stlf':al[eg~.they awe hap py ss thiuQs. (lwe lil1;[)1l'iill~ al~ol!!lnd the~_

I.iall and IKenne,d,V IRil •• 'Iel,db,.c!. and IIBw8lrid

I~isik

UIW

IHIGHI

I~EEI[]BA€:K ANID REWA1~m

I~APII[]

SIUIW

Study NioteslJun9 20110- Waqar Anwar Chaudry

9

ILIiIW Ir'is!l :SlliliIN Irewalr,dsl- Ib!!lrel'llll~WaU~ ~®~np'aniIEls. S,lIO~'f pl'lDBd D[}linpa~i~s, t'S~Blre mrngs care d10ne umiillew TI~B l'Ilinbit ef el<lc~ssi~e 1'!JII~B,S a ndlll"Bl~!JIlarii[}m;

ILIiIW risk allild li''aI,pId l~eWlali'dls- ®i'!gfaniz;a~i[lnIll'lhiclil tend I® tal~e I'i~l eS~Bc;i;alllw ih~ IC!JIstlomew ~ocl!Ised 100r~iliinizcati®rn_ifit1~ i1i:tli1Ipb~E6lS iliirG Irewl'lwo~o lm J1nBir tilinilillV :daci~i®rn ~~Iiit~ 1'B:.Wl'IIi'Os.

Hi:ghllriisR GullOrli

IHig:h Iris!llslow reiINa~ds-iEliI1p~I®¥ee ta~B:s wis~ IbulithEl [)!JIt©[)liIlitl m:t~~ Irislk (]I'finl'lll oili~isiOlni lstna sJm\I'. t'fnrcih 1iIl;aI~B:s ih~ I~B~'fluoi~lQ IPJ~OIDB:SS TI[) slow _ DOlil1p~~i~s ilil\l'ol~~~ ii~ Blx!pll®r,a~i(]~s. dH IlliniQ and iliiiw!plliliil1l~ ItlIIanWlfl'lct!!lwiil~_

IHig:h Iriisll!:.lhi'gh, reiINa~ds-iEliIlpll®VBiB:S tabs rlsk l'UIIO ,aJ~B re\\I,ande~ ilinlilllBdiatlBlly_ Li~ ICl'Ipihlllil1;aI'~ets carnd Ibr®~I',algEl ril"lins_

Chalrilils Han.d,V ICullilUlr,1

o ~(]wel' ICiUlI~u r~

o Rlo/liG CIUHIlII'1El

o Ias k cWlHWlrn

o IP~rs®~ C!!l~iiilli'iB

II:ISIK MIIHAGiIEIMIEIIT' II:ESPIDIISlllIllllll'llIE,S

o 8Io'al'~

o R'isk mJl'I~lcaQ~IiI1i:l~t CIOlil1llinitt~~S

o R isk mJl'I~lcag~Iin!E~t !9,I'[}!JIPS

o l'n~Blwl1l~11 ;a~d exiBlrl1lcal ilii!!lobr

o IMHmag;ElJ's

o Staf~

o l~is~ s~~~il'll:ist

o l~is~ IiIlH nll'I.9IBlrs

Study Nlotes/June 20110- Waqar Anwar Chaudry

10

U1W

IHIGHI

IUIW

AVDml~NCE (ElliUllinating Misk. by aballl dill nli1i1ent),

A.DCIEPfANCIE (Cost / benefit ,illnillvs:is)

mRAJNSAER ,(II'nsll!lram:e ! clilntingelilcy plall1ls)1

RIEDUCl1l [lIN

(SeN ililSlilli':alilCEl, CliHl~rol a~iji~i~ies>

IHIIBHI

,Acll!::eiptancIB

~iis~ is ennsidered i® be iirnsi~iIIific,a n~ IJr fhe enst rnr a\l'[iid i~!91 lhe riisk is ennsldered i® be ton gl'\BarIi set Hgll'li'niSt ~h.B prrhmiil'llll'm;s tlh'ilt IClDu'Io be invc !!I1'weo_

[ralrnlshir

~iisH'GlUS:rIB I' Clol1!lM i® iilsnJwilii~~e ~®liIlp'a nli~:s er tu ®l1lts®l1!Irce sel'1l'ic e pwo'l,l'id B rs

RedWictiilmln

~iis~ ca n ~e rsduted ~Ild i~(]t :alll'®i~ed ant(]~etlhm I' .. ~(]lli~iB:S :aln1d pl'm::eOl!lI'1B.s saeh as ICI[]lnfil'®1 illdi~ities ~iliii~ II'e~nJce rlst

,AVlilIli dance

TI[]~iElIIW [)~B I'CI[)liI1Iiil1~ II'isik..that is aljll[]iio~ii~ iit alii t)[]g;BTIh.B r. F,[],r l1i~a tlII~IEl (]p!EI',a~innl inl IP Dlllti~iliiIlWIjII[]llatiille ICI[]I!!Inbies \~:hBl'e Irislk I[]~ II®s s ef lif~ and ®pei'atii(]~ are masidewed t®® Qweillt t® the cost (]f SIBCIU1'iit~ iliiwe ICJmlSiiden'iBdl tan hiQh. the ~!jsinless ca~ elase (]Pilll',a~i[]lnls_

Study NloteslJune 20110- Waqar Anwar Chaudry

11