Transcript RISK MANAGEMENT Raime Sultan Yılmazlar 2010503070 Industrial Engineering Department, Dokuz Eylül University,Turkey

RISK MANAGEMENT
Raime Sultan Yılmazlar 2010503070
Industrial Engineering Department,
Dokuz Eylül University,Turkey
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Uncertainty
 A general lack of knowledge (no lack), information
about the contents
 There are some doubts as to have information
about the content
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threat
opportunity
Risk
Uncertainty
Danger
RISK
Risk of incurring losses
Negation
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Risk Management
 What went wrong ?
 What can be done before the incident ?
 What can be done when the event occurs ?
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 An appropriate risk management is not reactive, is
proactive.
 Protects against surprises,and reduces the effect of
negative results.
 Risks are translatable to advantage.
 Performance of the project, completed within budget
and time limits are appropriate.
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Types Of Risk Management
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Operational Risk Management
Financial Risk Management
Market Risk Management
Credit Risk Management
Quantitative Risk Management
Commodity Risk Management
Bank Risk Management
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Nonprofit Risk Management
Currency Risk Management
Enterprise Risk Management
Project Risk Management
Integrated Risk Management
Technology Risk Management
Software Risk Management
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Operational Risk Management
Operational risk management deals with technical
failures and human errors.
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Financial Risk Management
Financial risk management handles non-payment
of clients and increased
rate of interest.
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Market Risk Management
Deals with different types of market risk, such as
interest rate risk, equity risk, commodity risk, and
currency risk.
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Credit Risk Management
Deals with the risk related to the probability of
nonpayment from the debtors.
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Quantitative Risk Management
An effort is carried out to numerically
ascertain the possibilities of the different
adverse financial circumstances to handle
the degree of loss that might occur from
those circumstances.
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Commodity Risk Management
Handles different types of commodity
risks, such as price risk, political risk,
quantity risk and cost risk.
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Bank Risk Management
Deals with the handling of different types of risks
faced by the banks, for example, market risk, credit
risk, liquidity risk, legal risk, operational risk and
reputational risk.
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Nonprofit Risk Management
This is a process where risk management companies offer
risk management services on a non-profit seeking basis.
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Currency Risk Management
Deals with changes in currency prices.
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Enterprise Risk Management
Handles the risks faced by enterprises in
accomplishing their goals.
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Project Risk Management
Deals with particular risks associated with the
undertaking of a project.
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Integrated Risk Management
Integrated risk management refers to integrating
risk data into the strategic decision making of a
company and taking decisions, which take into
account the set risk tolerance degrees of a
department. In other words, it is the supervision of
market, credit, and liquidity risk at the same time or
on a simultaneous basis.
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Technology Risk Management
It is the process of managing the risks associated
with implementation of new technology.
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Software Risk Management
Deals with different types of risks associated with
implementation of new softwares.
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4 Main Components Of Risk Management
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Risk Identification
Risk Analysis
Risk Mitigation
Risk Monitoring
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Risk Identification
Determining what risks or hazards exist or are
anticipated, their characteristics, remoteness in time,
duration period, and possible outcomes.
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Risk Analysis
The aim of the risk analysis to carry
out sufficient information about
probability of risk, cost, planning and
results.
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Risk Mitigation
Risk mitigation intended to reduce the risk of
being and effect of risk. Occurs as a result
of countless daily decisions.
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Risk Monitoring
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Principles Of Risk Management
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Create value
Be an integral part of organizational processes
Be part of decision making
Explicitly address uncertainty
Be systematic and structured
Be based on the best available information
Be tailored
Take into account human factors
Be transparent and inclusive
Be dynamic, iterative and responsive to change
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Risk Assessment
A risk assessment is an important step in
protecting workers and business, as well as
complying with the law. It helps to focus on the
risks that really matter in workplace-the ones with
the potential to cause harm.
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There is always a risk. If there is a no activity,
there isn't any risk.
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