Main Topics of Study:
- What is risk management?
- Why is this important?
- The overall risk process including analysis, risk identification, risk assessment, risk evaluation, risk planning and risk management.
Analysing 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)
- Outputs (Analysis findings)
- Examples of business processes include; Marketing & Sales, Manufacturing, Billing, Training, Facilities Management and Purchasing.
- 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
- Risk assessment & 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”.
- Producing action plans based on the risk assessment and evaluation stages.
- Concept of risk appetite. Risk response strategies including; risk reduction and risk removal.
- Ensuring that appropriate risk responses are implemented. This will include:
- Reacting to early warning indicators, registering changes to risks, reviewing risks and those involved, and reporting on outcomes.