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

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 Case

Realising Reward – The Business Case

Evolu lutio ion of Busin iness Ris isk

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

Process of Risk isk Management

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

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

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

Resid sidual l Risk isk Risk appetite/acceptance level ALARP as low as reasonably practicable SFAIRP so far as is reasonably practicable

Resid sidual l Risk isk Risk appetite/acceptance level

Risk Maturity Model Stage 5 Stage 4 Built in decision Stage 3 making Integrated response to adverse events Risk interaction Tone set at the top Stage 2 managed with Stage 1 Performance linked Incentives Policies, Reaction to adverse matrix Intelligent risk taking Ad hoc procedures, risk events by specialist Rapid escalation Sustainable Chaotic authorities defined Cultural Depends primarily and communicated Discrete roles and transformation ‘ Risk management is on individual Business Function established for small set underway everyone's job’ efforts, of risk Primary qualitative Bottom up proactive Capabilities and Typically for compliance Reactive and insurance verbal wisdom System Risk Intelligent Specialist silos Top Down approach Tribal and heroic Rewarded Risk Unrewarded risk