Please enable JavaScript.
Coggle requires JavaScript to display documents.
CHAPTER 2: RISK MANAGEMENT - Coggle Diagram
CHAPTER 2: RISK MANAGEMENT
IMPORTANCE OF RISK MANAGEMENT
To enable an organization to progress toward its goal and objectives in the most direct, efficient, and effective path.
Direct - without intervening factors or barriers.
Efficient - Achieving maximum productivity with minimum wasted effort or expense.
Effective - Successful in producing a desired or intended result.
Definition - A systematic approach to identify, measure and control risks that can threaten assets and earnings of oneself, a business or the organization.
PRIMARY OBJECTIVE OF RISK MANAGEMENT
Humanitarian goals
To utilize cost, resources and social responsibility.
To preserve the operating effectiveness of the organization.
PRE LOSS OBJECTIVES
To reduce and minimize the impact of loss.
To reduce fear and worries.
Required by law and regulators.
POST LOSS OBJECTIVES
Survival of the organization – able to continue the operation.
Stability of earnings – business operation do not have to stop.
Reduce impact of loss to organization and society.
RISK MANAGEMENT PROCESS
Examining alternatives Risk Management techniques
Selecting and implementing Risk Management program
Evaluating potential risk
Evaluating, reviewing and controlling the Risk Management program
Identifying existing and potential risks