Risk Management

Concepts and Principles

GROUP 6 PRESENTATION
Risk Management

• Is the process involved with identifying, analyzing and

responding to risk. It includes maximizing the results of
positive risks and minimizing the consequences of
negative events.
Principles
Risk Identification: This involves identifying and documenting potential
risks that could affect a project, organization, or process. This is a crucial
step to ensure that all possible risks are considered.
Risk Monitoring: Risks need to be continuously monitored to ensure that the
identified strategies are effective and to identify any new risks that may arise
over time.
Risk Communication: Effective communication of risks and their status to
stakeholders is vital for transparency and informed decision-making. This
ensures that everyone involved understands the risks and their potential
impact.
What is Risk?
• Risk is the potential for loss or damage resulting from uncertain or
unpredictable events or circumstances. It refers to the possibility of an
unwanted outcome or negative consequences that may occur in different
aspects of life, such as finances, investments, health, or everyday activities.
Risk involves uncertainties and the chance of harm, and it is often associated
with the concept of probability, where the likelihood of a certain event
occurring is assessed. Understanding and managing risk is crucial to making
informed decisions and taking appropriate actions to minimize potential
losses.
Risk vs. Hazard
• Hazard refers to any source of potential damage or adverse
health effects to something or someone, while Risk is the
possibility for someone to be harmed or experience adverse
health effects if exposed to the hazard and Risk implies to the
person who was exposed to a danger would suffer harm or have
a negative impact on their health.
What is the purpose of risk management?

• Risk management is important during project initiation

and planning. Successful manage risk can have a higher
chance to be successsful.
What is Hazard?
• Both hospitality industry and in food establishment Hazard
known as the harm that results from an uncontrolled hazard.
Moreover, Hazard are used in other fields to describe
environmental damage, or damage to equipment.
What types of hazards are there?

• At this rate different types of occupational Hazard such

as physical and mechanical Hazard, biological
chemical Hazard and phychosocial Hazard.
Psychosocial Hazards
• Low job control
• Poor support
• Low role clarity
• Poor organisational change management
• Low reward and recognition
• Poor organisational justice
Physical Hazard
• Falls
• Machine related (burns, cuts, shear, stab)
• Confined spaces or having limited openings for entry and exit
• Noise
• Electrical injuries
• Temperature extremes
 Biological and Chemical Hazards
• Virus
• Fungi Mold
• Blood-borne pathogens
• Tuberculosis
• Heavy Metals
• Solvents
• Petroleum
• Fumes
• Highly-reactive chemicals
• Fire, conflagration and explosion hazards
Sources of risk
• Uncertainty in the Financial Markets
• Threats fromProject Failures (at any phase in design, development,
production, or sustainment life-cycles)
• Legal Liabilities
• Credit Risk
• Accidents
• Natural Courses and Disaster
What is the best way to avoid hazard?

• Review job hazard and job safety analyses with any

involved workers before beginning the work, and
inform others of the activity, work schedule, and any
necessary safety measures.
Uncertainty in the Financial Markets
• Uncertainty in the financial markets is only happening when the market condition is
uncertainty, and as for that. the risk management will be the there guide to be more
applicable in doing market, but when the risk management is included in your market
you need to be more creative and be more responsible to your actions because in risk
management here you can get a lot of good thinking skill, and it will help you to be more
classified or be more professional so your uncertainty before will turn into a good future
financial markets. Macroeconomic conditions, in particular market uncertainty, and how
it affects investors and financial analysts, is one of my main research areas. They are, in
my opinion, the most significant players on the stock market and other financial markets.