Risk Management Techniques An unwanted event with certain - - PowerPoint PPT Presentation

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risk management techniques an unwanted event with certain
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Risk Management Techniques An unwanted event with certain - - PowerPoint PPT Presentation

Oct 17, 2023 310 likes •508 views

Risk Management Techniques An unwanted event with certain PROBABILITY and CONSEQUENCE Business Challenge Governance Challenge: The Board's Role in Crisis and Risk Management The World.. Risk of reputation Managing Risk The Business

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Risk Management Techniques

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An unwanted event with certain PROBABILITY and CONSEQUENCE

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Business Challenge

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Governance Challenge: The Board's Role in Crisis and Risk Management

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Risk of reputation

The World..

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Managing Risk – The Business Case

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Realising Reward– The Business Case

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Evolu lutio ion of Busin iness Ris isk

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Occupatio ional l Healt lth & Sa Safety

Ri Risk Man anagement St Standards

  • ISO 45001:2018 Occupational health and safety management systems

Requirements with guidance for use

  • ISO Guide 73:2009 Risk management - Vocabulary
  • ISO 31000:2018 Risk management – Guidelines, provides principles,

framework and a process for managing risk

  • IEC 31010:2019 Risk management -- Risk assessment techniques
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Process of Risk isk Management

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Types of Risk isk Ass ssessment Techniq iques

  • Risk identification
  • Consequence analysis
  • Qualitative, semi-quantitative or quantitative probability

estimation

  • Assessing the effectiveness of any existing controls
  • Estimation the level of risk
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Dif ifferent methods

  • 1. Look Up methods -

Checklist, preliminary hazard analysis

  • 2. Supporting methods - Delphi technique, what if

3. Scenario analysis - Root cause analysis, fault tree, event tree

  • 4. Function analysis -

FMEA, FMECA, HAZOP

  • 5. Controls assessment - LOPA, Bow Tie
  • 6. Statistical methods -

Markov, Monte – Carlo

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Factors in infl fluencin ing se sele lectio ion of f risk risk assessment techniq iques

  • Complexity of the process/hazards & the methods needed to

analyse it

  • The nature and degree of uncertainty of the risk assessment

based on the amount of information available and what is required to satisfy objectives

  • The extent of resources required in terms of time and level of

expertise, data needs or cost

  • Whether the method can provide a quantitative output
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Resid sidual l Risk isk

Risk appetite/acceptance level

ALARP

as low as reasonably practicable

SFAIRP

so far as is reasonably practicable

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Resid sidual l Risk isk

Risk appetite/acceptance level

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Integrated response to adverse events Performance linked matrix Rapid escalation Cultural transformation underway Bottom up proactive System Stage 4 Tone set at the top Policies, procedures, risk authorities defined and communicated Business Function Primary qualitative Reactive Top Down approach Stage 3 Risk Intelligent Built in decision making Risk interaction managed with Incentives Intelligent risk taking Sustainable ‘ Risk management is everyone's job’ Stage 5

Risk Maturity Model

Ad hoc Chaotic Depends primarily

  • n individual

efforts, Capabilities and verbal wisdom Tribal and heroic Stage 1 Reaction to adverse events by specialist

Discrete roles and established for small set

  • f risk

Typically for compliance and insurance

Specialist silos Stage 2

Unrewarded risk Rewarded Risk