ICM - Risk Management
- Aims of Risk Management Training:
This training introduces the risk techniques as part of the overall management process. It describes the various stages involved in the risk management process starting with identifying the individual risks in relation to the overall objectives of the business or project activity. Further stages considered include the analysis of the likelihood and potential impact of such risks on the business objectives and the planning of suitable responses including the identification of staff who will be responsible for taking appropriate actions.
Candidates will be able to:
- Identify the main elements in an overall risk management process.
- Use appropriate techniques to identify risk events.
- Analyze risk in probabilistic terms for likelihood and impact.
- Produce a risk register with appropriate information.
- Understand the role of people in the implementation and updating of risk plans.
Introduction to Risk Management
- Why is this important?
- The overall risk process including analysis, risk identification, risk assessment, risk evaluation, risk planning and risk management.
Analyzing the Business
- Understanding the business or project activity
- Understanding the primary processes and goals
- This includes the inputs (such as business objectives, financial reports, marketing plan), constraints (such as the risk management plan), mechanisms (such as the analysis tools, SWOT, PEST), and outputs (analysis findings).
- Examples of business processes include; marketing and sales, manufacturing, billing, training, facilities management and purchasing.
Risk Identification
- Identifying risk events and constructing a risk register
- PEST and SWOT analysis
- Risk questionnaire
- The risk register will include each risk event together with information on status, probability, impact and risk response action.
Risk Assessment and Evaluation
- This stage looks at assessing the probability and likely impact of the risks identified.
- Decision trees
- Pareto analysis
- Expected Monetary Value (EMV)
- Classifying risks into ‘high’, ‘medium’ or ‘low’
- Risk Planning
- Producing action plans based on the risk assessment and evaluation stages
- Concept of risk appetite