Course Code and Title: FINE3 Risk Management

Lesson Number: 3
Topic: SWOT Analysis and The Five Porters Model
Introduction:
In this lesson, we will identify the role of SWOT analysis in risk management.
Designing an initial SWOT assessment of a company is also part of your learning in
this module.
Learning Objectives:
1. Interpret the concept of risk management.
2. Relate the importance of SWOT analysis in risk management.
3. Demonstrate ethical standards by being honest and respectful.
Pre-Assessment for the company chosen.
Identify the Strength, weakness, opportunities and threats.

Strengths Weaknesses

Opportunities Threats
Lesson Presentation:

Risk Management

Risk management applies to many aspects of a business. Your business is

subject to internal risks (weaknesses) and external risks (threats). Generally, you
can control internal risks once you identify them. However, external risks may be
out of your control.
Not all risks come from negative sources. Risks may come from positive
sources or opportunities. Expansion and growth are opportunities, but they also
bring additional risk.
The ultimate goal is to minimize the effects of risks on your business.

SWOT Analysis for Risk Identification

SWOT Analysis –the acronym stands for Strengths, Weaknesses, Opportunities,

Threats. It’s a great tool to use in a group – either in a facilitated session or as a
brainstorm. This method is very helpful for identifying risks within the greater
organization context.

Strengths and weaknesses are generally related to issues that are internal to the
organization. Strengths examine what your organization does well or its assets, skill,
core competencies. Weaknesses are areas the organization could improve upon that
is lacking or missing from the organization.

Typically negative risks are associated with the organization’s weaknesses and
positive risks are associated with its strengths. In terms of Risk Management, we call
negative Risks as Threats and Positive Risks as Opportunities.

Opportunities and threats are usually external to the organization.

SWOT analysis is sometimes known as internal-external analysis and can be used in
combination with brainstorming techniques to help discover and document potential
risks.

Features of this technique:

The SWOT analysis identifies any opportunities for the project that arise from
organizational strengths, and any threats arising from organizational weaknesses.
The Five Competitive Forces That Shape
Strategy
Reinforcement / Assignment:

Collaborate with your group mates and do your tasks for the Risk Management
Plan.
Group work for Risk Management Plan – Develop your company’s SWOT
analysis and Porters 5 Model

Online Resources:

Participant Guide – Risk Management www.sba.gov

Risk Management Introduction, Queensland Government.
www.riskmanagement.qld.gov.au Organization and Management
www.pearsonhighered.com