risk management

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

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RISK MANAGEMENT. Raime Sultan Yılmazlar 2010503070 Industrial Engineering Department, Dokuz Eylül University,Turkey. Uncertainty. A general lack of knowledge (no lack), information about the contents There are some doubts as to have information about the content. - PowerPoint PPT Presentation

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RISK MANAGEMENTRaime Sultan Yılmazlar 2010503070Industrial 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 of incurring losses Negation

RISK

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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

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 andreputational 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 inaccomplishing 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 withimplementation of new softwares.

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4 Main Components Of Risk Management

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

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.