1. Hello everyone. My presentation topic is Risk Management. So lets get started.

2. So before discussing about Risk management we have to understand what is risk

a. Risk is defined in financial terms as the chance that an outcome or investment's actual gains. Risk includes
the possibility of losing some or all of an original investment.
b. It is an uncertain event which may occur in the future
3. Now what is risk management : The risk management process is a framework for the actions that need to be taken.
There are five basic steps that are taken to manage risk.
 The initial step in the risk management process is to identify the risks that the business is exposed to in its
operating environment. There are many different types of risks like Legal risks, Environmental risk, market risk,
regulatory risk.
 Once a risk has been identified it needs to be analyzed. To determine the severity and seriousness of the risk it
is necessary to see how many business functions the risk affects. Evaluation of risks will let us know the far-
reaching effects of each risk.
 Now third step is to evaluate the risk. Risks need to be ranked and prioritized Depending on the severity of the
risk. A risk that may cause some inconvenience is rated lowly, risks that can result in catastrophic loss are rated
the highest. It is important to rank risks because it allows the organization to gain a holistic view of the risk
exposure of the whole organization.
 Now the forth step is to treat the risk : Every risk needs to be eliminated or contained as much as possible. This
is done by connecting with the experts of the field to which the risk belongs.
 And the last step is to monitor and review the risk : Not all risks can be eliminated – some risks are always
present. Market risks and environmental risks are just two examples of risks that always need to be monitored..
4. Here is of pictorial representation of cycle of risk management that we have just discussed in the previous slide.
5. So, what is the importance of risk management. Risk management is important because it tells businesses about the
threats in their operating environment and allows them to preemptively mitigate risks. In the absence of risk
management, businesses would face heavy losses because they would be blindsided by risks. And there are some
benefits of risk management like it promotes the growth of the business empowers it And ensures the level of risks
in the business.
6. Catagories of risk : There are multiple ways into which risks can be categorized like Financial
a. It is the possibility of losing money on an investment or business venture. Which causes reduction in
funding and poor budegeting.
b. Operational: These risks result from failed or inappropriate policies, procedures, systems or activities.
Example failure of an IT system.
c. Next is reputational, means when an Organization engages in activities that could threaten it’s good name
example, Staff or members acting in a criminal or unethical way.
d. And the last strategic means the internal and external events that may make it difficult, or even impossible,
for an organisation to achieve their objectives and strategic goals.
7. Why Risk Management May Fail . here are some reasons of why it may fail.
a. When there is a limitation of scope, when there’s is a lack of management support, and when the
management is not engaged with all the stakeholders or owners which results in the miscommunation and
uneven share of information.
8. Now lets discuss Response to Risks : It is the process of controlling identified risks.
a. Avoid : Change your strategy or plan to avoid the risk.
b. Mitigrate : Means Take actions to reduce the risk example taking work procedures.
c. Transfer : Tranfer the risk to a third party. Example purchase fire insurance for an unfinished building.
d. Acceptance : Decide to take or retain the risk .
9. So finally here comes the conclusion.
 Based on this presentation. I have concuded that risk management improves decision making. Though
Risk management does not guarantee success but it improves decision making.
 Improves chances of success : It is obvious when the risk is minimum then the chances of success is
maximum
 And the last is Risk is essential for progress and failure is key part of learning.
10. So that is all from my side on this presentation. THANK YOU!