Opportunity Risk Management The pessimist sees difficulty in every - - PowerPoint PPT Presentation

Opportunity Risk Management

“The pessimist sees difficulty in every

• pportunity.

The optimist sees the opportunity in every difficulty” Winston Churchill

Insurance Sara Done Samantha Fraser Tracy Read Team Manager Angela Beechey (ALARM Risk Manager of the Year 2010-11) Risk Management Jane Cooper Lynne Hall

The Risk Management Team

Today’s Agenda

• Introduction to Opportunity Risk

Management

• Shropshire Council’s Strategy for

Managing Opportunity Risk

• The Opportunity Risk Management

Cycle

What is an Opportunity?

• The threat that an event or action will adversely affect

us achieving our opportunities and objectives.

What is Opportunity Risk Management?

• Realising our opportunities by managing

the associated risks.

What is a Risk? Opportunity Risk Management

• The possibility of doing something out of the ordinary,

which has a welcome result.

• Framework with six core

principles

• Risk appetite
• Decide, Develop, Deliver
• Maximising Opportunities
• Reporting function
• Governance
• Roles and responsibilities
• Training
• Business continuity

management

Opportunity Risk Management Strategy

Opportunity Risk Management Strategy The possibility of doing something out

• f the ordinary, which has a welcome

result.

Why do we do it?

• Greater certainty of delivery outcomes
• Enhanced reputation
• Confidence within communities
• Improving the services we deliver
• Developing close working relationships

with our partners

• Meeting internal/external audit

requirements

• Fulfilling contractual obligations
• Compliance with data protection

legislation

• Maintaining quality of services

Our Priorities

• Flourishing Shropshire Communities
• Greater Public Confidence
• Better Health & Wellbeing
• Better Education Attainment and Work Placed

Skills

• Economic Growth & Prosperity
• Modern Infrastructure & Different Ways of

Working

• Organisational Development & Behaviour

Change

Lost at Sea

Exercise

The Opportunity and Risk Management Cycle Identification Assess and Prioritise Treat and Control Monitor and Review

The Opportunity and Risk Management Cycle

The Scoring Opportunities and Risks are scored in terms of likelihood and impact. Both are rated on a scale of one to five. The two scores are then multiplied to produce the overall opportunity or risk score and plotted

• n the matrices.

Analysis

Risk Tolerance Level 5 4 Risk Acceptance Level 3 2

• 1

1 2 3 4 5 I M P A C T LIKELIHOOD

Risks above this level attract appropriate effort and resources Risks below this level attract minimum effort and resources

• A Healthy Appetite

Part 1 Identify Opportunity

Practical Exercise

Part 2 Associated Risks Part 3 Prioritise

Opportunity Matrix

H H H H H

5 O P P I M P A C T

H M M L L

4

M M L L VL

3

M L L VL VL

2

L L VL VL VL

1 5 4 3 2 1 OPPORTUNITY LIKELIHOOD

Risk Matrix

R I S K I M P A C T 5

H H H H H

4

L L M M H

3

VL L L M M

2

VL VL L L M

1

VL VL VL L L

1 2 3 4 5 RISK LIKELIHOOD

• Review, Re-assess, Report
• Is the opportunity still viable and the risks still

relevant?

• Are the enablers to the opportunity being

utilised and are the risk control measures and mitigation sufficient?

• Are the scorings still accurate?
• Have we identified the appropriate lead?
• Are there any new opportunities or

emerging risks?

Monitoring and Review

• Opportunity Risk management is vital to create a

culture where good things happen

• Controlling the associated risks must

be realistic and proportionate

• Document our opportunities and risks so we can

ensure consistency and accountability Opportunity Risk Management never ends!

Summing Up

http://notes2/intranet/insurance.nsf

Intranet

“The alternative to Risk Management is Crisis Management but that is far more expensive, embarrassing and time consuming”

James Lam