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individual-_applying_risk_management_consulting_.pptxIndividual: Applying Risk Management Consulting
Ramell Watts CMGT/430 AFSHIN SARDARYZADEH 26 Jul 17
Principles of Risk Management
Identification of risk
Analysis of risks
Controlling of risks
Risk Financing
Management of claims.
These principles are applied in the day to day lives of every individual both at home and at work.
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How the Organization applies the risk management principles
The organization identifies the risks that are presented to it through the principle of risk identification
The organization evaluates the extent to which these risks could harm the firm through the second principle of risk analysis.
The third principle offers opportunities for avoidance, prevention and reduction of the potential risks in the organization.
The organization funds the process of mitigation of the possible risks using the fourth principle.
The organization claims management using the fifth principle.
. It categorizes the risks for the second process.
Risk analysis is achieved by assessing the severity and vulnerability of the potential risks.
This principle ensures that the organization minimizes the risks as much as it can.
This can be by having the appropriate insurance cover for the cars in the firm.
This happens when a loss occurs in the company.
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How the Protection Efforts will vary
The manner in which different organizations will address the risks will vary with time.
There will be programs aimed at continuously establishing the risk management and protection efforts.
The organization will need to update its risk management plan to accommodate the increasing changes.
Social vulnerability will be addressed during the risk management process.
It will be necessary to review the risk management plan of the organization to ensure that the plan is up to date. The strategies for the protection of the company’s resources as well as those of risk management will change over time. This is evident from the new ventures, changing work processes, changing rules and the increasing opportunities of risks due to the increasing use of internet technology
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Threat, Vulnerability, and Risk
| Threat Type | Threat | Exploit/Vulnerability | Exposed Risk |
| internal threat (artificial) | Intruder | Absence of security | Theft |
| external threat(artificial) | Hacker | Misconfigured firewall | Loss of information |
| internal threat (Artificial) | Current employee | Absence of audit policy | Loss of integrity; |
| Natural | Fire | Inadequate fire control | Damage and loss of lives |
| Natural | Hurricane | Inadequate preparation | Damage or loss of life |
| Spiteful external threat | Virus | expired antivirus software | Infection of virus |
| Technical internal threat | Hard drive failure | Absence of back up | Data loss |
Handling Risk
Risk reduction
Risk transference
Risk acceptance
Risk rejection
Implementing an alternative cause of action to help reduce the risk.
Purchasing insurance to transfer a portion or all of the potential cost of a loss to a third party
Dealing with risk by accepting the potential cost and loss if the risk occurs.
Pretending that the risk doesn’t exist and ignore it. Although this is not a prudent course of action, it is one that some organizations choose to take.
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references
Hopkin, P. (2017). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Lam, J. (2014). Enterprise risk management: from incentives to controls. John Wiley & Sons.
McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press.
