Villarama, Christian Michael A.

ESE150-2/A73 July 22, 2022

2019104564 Engr. Paul Hendrik Cortez

Module 3. SW2

1. What is Risk Management?

Risk management is identifying and selecting the most effective approaches for
dealing with an organization's loss exposures. Because the term risk is imprecise and has
several meanings, risk managers commonly use the phrase loss exposure to highlight
possible losses. Previously, risk managers addressed only pure loss exposures posed by the
company. However, new types of risk management are emerging that take into account
both pure and speculative loss risks. The risk management strategy determines a project's
methods, methodologies, tools, and team roles and responsibilities. The risk management
strategy specifies how risk management will be organized and carried out on the project.

2. How would you relate and connect Risk Management and Sustainable Development?

Risk management is essential in ensuring sustainable development in an

organization. A business that can manage risks and carry out duties efficiently will almost
certainly succeed in its goals. The market is packed with threats that must be addressed
promptly. Thus, using risk management software may efficiently remove hazards in a
system. The fundamental aspects of effective risk management are vital in assuring the
flexibility of the risk management program. Because organizational structures, tactics, risk
profiles, and operational philosophies differ, their adaptability is critical. Furthermore, the
intricacies of each vary among organizations and sectors.

As a result, there is a connection between sustainable development and disaster risk

management, and they are interrelated. Disasters significantly inhibit progress toward
sustainable development, yet efficient disaster risk management contributes towards
sustainable development. Sustainable development and disaster risk reduction
(management) are closely related on many levels. Disaster frequently adds severe costs to
communities through financial losses, ruined infrastructure, and human life loss. They have
the potential to stall growth for years. With that being said, disaster risk reduction is critical
to achieving Sustainable Development.
3. Discuss and compare: Risk and Hazards

A hazard is defined as something that has the potential to cause an undesirable or

destructive occurrence. It can be an action, situation, or circumstance, whereas risk is the
possibility or chance that the event will occur and the severity of the occurrence. During
the filtration of petroleum products, vapors that are dangerous to your health might be
discharged into the air. This is an example of a hazard; however, because it is done outside,
the risk is intrinsically small because exceeding the exposure limit while executing the
work outside with the right equipment is almost impossible. Therefore, the risk would be
heightened if the filtering and product transportation were performed indoors or in a
restricted location.

4. Site examples (atleast 3 ways) on how to apply risk management to sustainable development?

Natural disasters jeopardize sustainable development. They inflict death and

damage, sometimes with life-changing implications. Furthermore, they demolish homes,
schools, health clinics, hospitals, utilities, roads, marketplaces, and other social and
economic infrastructure, as well as causing environmental damage. Therefore, we need to
apply risk management to achieve sustainable development.

The first example to achieve this is by integrating disaster risk reduction into
development. The explicit inclusion of disaster risk in the design of development policies,
national and sub-national development plans, land use plans, construction regulations, and
individual investments is required for disaster risk integration. The goals and objectives
outlined in a national development plan, for example, drive the focus of public
interventions throughout the plan's life. The plan's preparation provides an opportunity to
investigate disaster risk from a socioeconomic standpoint, examining its contribution to the
pace of both human and economic development. This analysis may then be used to
construct a development vision and related program of action that incorporates concepts of
improved resilience while also encouraging practical progress in risk assessment, risk
reduction, and residual risk management.

Second, pre-disaster recovery planning is critical to ensuring that disaster relief,

early recovery, and rebuilding money are used most effectively to enhance sustainable
development or, at the very least, that progress toward the SDGs continues on track. Both
 local and national governments may plan for recovery using scenario-based plans to
maximize the chances for social and economic growth from disasters. Lastly, post disaster
assessments and coordination of programs of support. These evaluations give essential
information that may be used to plan suitable relief and rebuilding initiatives and foster a
broader knowledge of the significance of significant events to socioeconomic development
and progress.

Disaster risk is a severe threat to long-term development. Similarly, lesser levels of

human development increase disaster risk. As a result, mutually beneficial efforts to
increase disaster resilience and advance sustainable development are possible. These
synergies must be expressly recognized, and efforts made to assure their realization.

References:

Benson, C. (2016). Promoting sustainable development through disaster risk management.

https://www.adb.org/sites/default/files/publication/182652/sdwp-041.pdf

Disaster Risk Reduction. Retrieved July 22, 2022 from

https://sustainabledevelopment.un.org/topics/disasterriskreduction

Risk and Hazard Management. Retrieved July 22, 2022 from https://www.otago.ac.nz/health-
safety/hazards/

Risk Management Approach and Plan. Retrieved July 22, 2022 from
https://www.mitre.org/publications/systems-engineering-guide/acquisition-systems-
engineering/risk-management/risk-management-approach-and-plan