This action might not be possible to undo. Are you sure you want to continue?
com Skype id : shermeen35 00923125142366
STRATEGIC RISK MANAGEMENT
Table of contents:
1. Be able to understand the concept of risk, roles and responsibilities for risk management, and risk management tools and models…………………………………………….03 1.1Explain The Meaning Of Risk Management To An Organization…………..04 1.2 Determine The Roles And Responsibilities For Risk Management At Senior Management Level…………………………………………………………05
1.3 Evaluate Risk Management Models …………………………………………………….06
2. Be Able To Understand The Resourcing And Implementation Of Risk Management Strategy ……………………………………………………………………………07 2.1 Evaluate Risk Management Criteria Against Which Risk Can Be Assessed ……07
2.2 Critique Techniques To Identify And Quantify Risk, Including Risk
.2.3 Develop Strategies To Eliminate, Mitigate, Deflect Or Accept Risk ……………………08
2.4 Determine A Process For Communicating, Resourcing And Managing Risk Management Strategies …………………………………………………………………………………………09
3. Be Able To Understand The Evaluation And Management Of Risk Management Strategies ……………………………………………………………………………..11
3.1 Evaluate The Outcomes Of Risk Management Strategies…………………………….11 3.2 Determine Actions to Respond To Outcomes Of Risk Strategies ……………………….11 3.3 Devise A Disaster Recovery Plan ………………………………………………………….12 3.4 Examine Influences That Would Affect A Review Of The Disaster Plan ………………14 Conclusion………………………………………………………………………………………15 Refrences…………………………………………………...........................................................16
1. Be able to understand the concept of risk, roles and responsibilities for risk management, and risk management tools and models.
Related to risk management, it is a logical manner and methodology for establishing the context, risk identification and risk analysis, risk assessment and, finally, against the risks. It also includes communication and consultation with the results, and monitoring and review of risk management. It deals with the fundamental to how companies and other organizations on risk management, and provide a basis for implementation in organizations, industries and sectors. It focuses directly on achieving the goals set by a particular entity, and provides a basis for determining the effectiveness of risk management in the company 1.1 Explain The Meaning Of Risk Management To An Organization
It refers to a broader context of organizational mission and various strategies of entire organisation (Bowden et al, 2001, the detainee). In this framework, we must develop and implement enough of the different performance indicators and significant success factors that are appropriate for different aspects of business that may include:
Revenue and profit Customer satisfaction
Stocks update and more
Process Of Risk Management The risk management process is consisted of following important steps: 1. Risks Identification:
This step is to document the circumstances and events that represent physical threats to the institution to achieve its objectives or represent areas to exploit the competitive advantage of 2
This step consists of creation of probability distributions of the results of all material risks. This step provides the necessary inputs for the subsequent steps, including integration and prioritization of risks. Analysis techniques across a range of quantitative spectral analysis of the qualitative work of sensitivity and scenario analysis and / or simulation analysis applied in his case.
2. Risk Evaluation This step is used to gather all segregation of risk, and measures the overall impact on range, and the results expressed in requisites of its contact on KPI of the institution 3. Risk Assessment The risk assessment is to link the two types of "size" all risks, which is one of the "critical", "high", "medium" or "low", and represents the expected value of risk, any chance of output and impact.
4. Treat/Exploit Risks
This step includes a number of strategies, like the decision to keep and maintain, transfer, or exploitation of the risks
5. Monitor & Review
This step contains the continuous measurement of the risk management strategies. It also provides a framework for consideration of the risks that are scalable over a period of time. Feed on the results of ongoing reviews again in the context of the preparation step and repeat the session. 1.2 Determine The Roles And Responsibilities For Risk Management At Senior Management Level Everyone in an organization has responsibility for risk management in the organization. The Chief Executive is ultimately responsible and should assume ownership. Support the philosophy of the managers of another entity risk management, risk management in its area of responsibility according to risk tolerance. Other people are liable for project execution, risk management and fixed according to the instructions and protocols. Council should be discussed with the management of the state agency, risk management and provide oversight as needed. The Council should ensure that reported the most significant risks, along with procedures. Various parties who belong to the external world of organization helps a lot in improving and implementing risk management practices .They include auditors, creditors, clients , sellers , distributors but is not liable for the effectiveness, as not part of the risk management entity in the organization. It means that the sole responsibility lies on the shoulders of internal management of company.This study suggests that the chief executive assess the organization’s enterprise risk management capabilities.
1.3 Evaluate Risk Management Models Risk modeling methods are used to identify risks and performance measures. Risk management tools enable planners to address explicitly the uncertainty through the identification and generation of metrics, priorities and the development of risk mitigation and monitoring
It may be in these models that determine the solutions "in the form of closed" by using various equations. The basic requirement includes a set of restrictive assumptions and predictions which are mathematically tractable.
The models require some reasonable "evidence" to answer approximate generated by computer. These methods are relatively strong and flexible and can adapt to the complex relationships and less dependent on simplifying assumptions and uniform probability distributions. The main advantage of the methods of analysis is the ability to model almost any real world situation with the degree of precision required. Statistical methods
The models are based on statistical characteristics of the observed (and between) the random variables without considering the question of the effects of relationships /. The main advantage over structural models is the ease of parameterization of the model data (often public) are available.
2. Be Able To Understand The Resourcing And Implementation Of Risk Management Strategy 2.1 Evaluate Risk Management Criteria Against Which Risk Can Be Assessed
There are various risk management criteria for assessing risk, they are mentioned below
1. Hazard Identification
The basic purpose is to determine the nature of the quality of the negative effects of pollutants and the strength of the evidence that could have an effect. This is done, chemical hazards, based on the results of science and epidemiological toxicology for other types of risks, and social engineering or other disciplines.
2. Dose-Response Analysis
Refers to the relationship between dose and the possibility or occurrence of the effect. This step is a bit complex The reason is that, in many situations the interpretations are made by exploring results with animals or humans. Furthermore, differences between individuals due to genetics or other factors mean that the risk may be higher for certain groups, and urged people exposed to it.
3. Exposure Quantification,
This method examines the results of the exposure assessment of the discipline. And different lifestyles and other factors that may affect the amount of pollutants that are received, the group is created or the distribution of possible values in this step. Special care is taken to determine the exposure of the population at risk in their country 2.2 Critique Techniques To Identify And Quantify Risk, Including Risk Interdependencies Risk Measuring Techniques include: Standard Deviation Shortfall Risk Value at Risk (VaR) Downside Standard Deviation
Below Target Risk (BTR)
Various critics have expressed fears that the risk assessment tends to be excessive and the amount of reductionism. For example, say that assessment methods do not include risks of qualitative nature. Cargo, some assessments can miss important information is not quantifiable and cannot access, such as differences between categories of people at risk.
.2.3 Develop Strategies To Eliminate, Mitigate, Deflect Or Accept Risk
Although the mechanisms of transfer of risk from the hazards and risks through financial markets, insurance and reinsurance and capital markets and they are not complete, ie being able to offer all products and services that may be required by companies. These markets need to continue to evolve over time in order to offer products that meet the needs of risk transfer institutions. Risk transfer mechanisms to cover the operational and strategic risks, but are less mature
1. Risk avoidance
This does not include performing any activity that leads to risk. For example, you cannot buy a property or business to take no legal responsibility that comes with it. Not be the last in order not to increase the risk that the plane was scheduled to be kidnapped. It may seem to avoid responding to all risks, but it also means deploying the potential benefits that acceptance (keep) the risk may be permitted. It also become cause of losing earnings.
2. Risk Prevention
Risk prevention refers to prevention of risks in emergency situations. The first phase and more effective in preventing the risk is to eliminate the risks. If it takes too long, too expensive or impractical otherwise, and the second is mitigation.
3. Risk sharing
This terms means to divide the burden of risk to other parties .Often used the term "risk transfer" instead of sharing the risks in the mistaken belief that you can transfer risk to another party through insurance or outsourcing. In fact, if the insurance company or contractor, or go bankrupt at the end of the day in court,
and the original risk is likely to return to what remains of the first part. As such, as practitioners and researchers and is often described for the purchase of the insurance contract and the transfer of "risk management risk. Some forms in the fall of several categories. Pools keep risks and maintain a risk technician for the group, but by diffusion in the group involve the transfer of the members of the group, and this is different from conventional insurance, which is exchanged between team members in advance of any premium, but losses are assessed to all members of the group.
4. Risk retention
This includes the acceptance of loss, or take advantage of the benefits at time of occurrence. Risks retained is deemed to be an important strategy for minors natured risks that the cost of insurance against risk is increased with the passage of time from the entire loss sustainment. It retains all the risks that are not avoided or transferred by default. Those risks of major nature are also covered in this category. Their cost of getting insured is too high to be beard .Here are some important strategies to deal with the risk: consult with the competent authorities for their contribution to the identification and evaluation of control options for risk reduction inform interested in risk management and selection of financing strategies inform stakeholders of the benefits and costs and new risks associated with the control of the proposed options determine the outcome of control measures implemented, the new players, or new issues evaluate the acceptability of control options;
2.4 Determine A Process For Communicating, Resourcing And Managing Risk Management Strategies Effective communication is necessary for risk management. Risk management includes everyone in your organization, from the President to the volunteers and staff and all who deal with them as part of their business. Therefore, it is important that everyone in your organization to understand what risk management is and why it is important, and are involved in developing and implementing a risk management strategy. Use the previous page points to inform everyone of what they do risk management review. There many
possible ways for the delivery of risk management for your organization, regardless of just keeping open lines on this issue all the time
Building a risk management committee While good risk management is the function of each in your organization, and a group of people dedicated to this task is a good idea - as does the formation of a committee to address other important issues. It is important to establish strong communication links between this group and the Council or the Commission - an integral part of the meetings of the Board or committee reports must be received from individuals progress in managing risks. Meetings To get everyone in a room (if possible) and perhaps is the best way to start the process of managing risks, which may explain face to face what is, and why they do it. These meetings should give people the opportunity to ask questions and input in the process. They can be regular briefings, meetings and workshops will also keep people aware of what stage of your organization when it happens, and if it works. They are also an ideal opportunity for comment. The meetings will continue to play an important role after the risk management strategy in place as part of monitoring and review of the strategy. Brainstorming
This is one of the best communication tools because they make everyone feel that they are concerned and also draw on your best resource: your members. Brainstorming sessions are great for identifying risks in the organization, throwing out their ideas with everyone. After all, people who take an active role in your group are in the best position to know the risks they face. Communicating through Newsletters and Bulletins To get everyone to attend the meetings is not always possible, so it is useful to put on paper what happens in the risk management in your organization and distribution, either in the form of a newsletter via e-mail or by mail or through the release pin on your bulletin board (or both). Must include the results of any meeting to exchange ideas and decisions taken at meetings.
Create A Reserve For Employees/Members Risk Management Guide is an excellent tool for everyone involved in your organization to be aware of the risk management problems. It can be used to define key terms for everyone working on the same wavelength, and can also serve as a reference during the whole process of risk management, information and reference point to ensure that strays too far from the track.
3. Be Able To Understand The Evaluation And Management Of Risk Management Strategies
3.1 Evaluate The Outcomes Of Risk Management Strategies
Management is required to evaluate the assessment of organizational structure and behavior in order to suggest improvements in the performance of institutions, and to judge whether it was justifiable to finance its operations. Other relevant assessments, including audit, which assesses the appropriateness of the intervention procedures and standards and rules established in advance by the financiers. Key Issues to address in an Evaluation Important issues to keep in mind is essential in the evaluation function. The subsequent series of key questions to be asked: relevant - if the objectives of these results, the overall objective of the project according to the needs, priorities and aspirations of the beneficiaries, and this policy. Impact - there is a change in order to achieve the overall objectives to be achieved as a result of the work of RM – the intended and unintended effects Efficiency - how economically the various inputs turn into outputs and outcomes? Effectiveness - the extent to which this program has contributed to the achievement of specific objectives Compliance - How can the program compared with the needs of the target population (s)? In the end, you can expect positive changes persists after the program - • sustainability? And the review half way between monitoring and evaluation, since it involves a new look in design, performance and objectives of the project. In comparison with the evaluations, reviews and more limited in time, with a focus range and less emphasis on lessons learned or evening .
3.2 Determine Actions to Respond To Outcomes Of Risk Strategies
As a result, if the risk occurs. May be related to the agenda of the consequences of the risks and schedule. You can combine the results of multiple risks in the risk category. You can
customize the results that are determined from the risks as well as enable / disable the results of programming with the risk o fdanger from the results of the dialogue.
Setting a threat to this task, the result can be increased cost and delay in the final of the taskor even cancellation of the project, and others. If it were possible to increase the appointment of a threat to resources, and as a result of cost, delay, and re-run, quit your job, and others. The preparation of this result is an effect, is to ignore the risks. You can not change things after analyzing the following results: Increased registration requirements Supervise the operation and maintenance and training Testing and certification of the independent The imposition of new standards and management systems
3.3 Devise A Disaster Recovery Plan Disasters can take many forms. While natural disasters such as hurricanes, floods and earthquakes, events that can lead to more disasters rarely strike binder system at any time and stop the system from viruses of the disease disgruntled employees. And return to normal operations as quickly as possible to reduce business interruption and good preparation for this. Can be defined as a disaster recovery plan as follows: "Plan for disaster recovery, security and disaster recovery that keeps the business as part of the security program to ensure availability of critical resources and facilitate business continuity in case of emergency (National Center of Information Security 1988) " There are five important steps in the process of business continuity planning. This process is sequential in nature, to be done to better understand the materials contained in the system ..
Step One: Initiation Prepare for the Initial Meeting with Senior Management
Get updated as much as possible about issues related to the development of disaster planning. To achieve the management support necessary for success, you must provide a deliberate approach and show the administrative control of the proposed project.
Form the Project Team
The first project team meeting should be conducted. Discuss the draft plan for the continuity and commitment of senior management of the project and the methodology of business continuity planning, and preliminary project plan that has been developed. Clearly define the roles of project team members.
A second meeting of senior management should be conducted. Branch and Divisions management should be introduced to the project.
Step Two: Business Impact Analysis
the identity of its business operations that are sensitive to time and services Data collection of business impact analysis Review the results of the analysis, the initial impact Identify time-sensitive operations and business application systems
Step Three: Disaster Readiness Strategies
• Identify and
cost business continuity alternatives
• Obtain approval of the strategy for disaster readiness • Preparation of a report by senior management • propose a strategy about disaster readiness.
Step Four: Develop and Implement the Plan Define the Scope and Number of Business Continuity Plans
Determining the scope of planning activities. It will have a direct effect on size of the continuity
of the organization, and the number of participating teams, and a set of plans will be developed. • Development of alternative site request for a proposal • The definition of the BCP team • The first meetings with BCP teams
Organize Plan Data
Using their business operations or time-sensitive processe sand methodology for collecting data, work with each team to determine the resources needed to restore business operations in the aftermath of a breakup. Response, Resumption, Recovery and Restoration resources
Step Five: Maintenance and Testing
A plan Exercise program is established Exercises for the sample of emergency response are developed
create training needs
3.4 Examine Influences That Would Affect A Review Of The Disaster Plan
Develop Plan Maintenance Procedures
Maintenance procedures generally consist of two categories: scheduled and unscheduled. Scheduled maintenance is related with time. Unscheduled maintenance is related with events. In majority of organizations, changes in, responsibilities, processes and staff are common. In a vibrant organization, business process changes are popular.
This is basically result of an organized review of continuity plan of business.The aim of review is to anticipate the required changes
.The process of reviewing will deal with the events that occurred in the area of each team’s
responsibilities that may affect the response of the Organization, and the ability of the resumption, recovery or restoration. Examination revealed the updates or changes as needed
Specific maintenance requirements can not be predicted and can not be programmed. Most of these changes are scheduled to occur as a result of a plan of great change for the organization, business processes, operations, functions and system utilasation , etc.. Keep track of all changes to the plan resulting from non-scheduled maintenance. It may be the team leader who will submit the changes that occurred in his area of responsibility. Should establish procedures for the escalation of the disaster, including notification of appropriate members of the recovery team, senior managers, and vendors from the coast, and others involved in planning for disaster preparedness.
Risk should be managed on an active basis. Risk management includes identifying high-risk areas from the start, explained to the extent possible, with better technology or marketing of talent devoted to this problem, get the problems as soon as possible, and be equipped with the emergency plan in case if something cannot be resolved, if you own a small business or any person employed by a large company, you can apply the same principle: to be ready is crucial to protect your organization in the case of systems disaster .Due care should be given t o manage and implement risk methods and techniques.
Books and journals:
Bowden, A. , Lane, M. and Martin, J. (2001) Triple Bottom Line Risk Management. Wiley.Steven F. Blanding ,Enterprise Operations Management Handbook, Second Edition Williamson, John (2001) Business Continuity Planning, A Primer for Management and IT Personnel
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.