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Al-Qassim University

College of engineering

General Engineering Department

GE 402 Project Management

A Report in:

Submitted by:

Name: Muneer Jameel Al.Mutairi.

PIN: 425040010

Submitted to:

Prof : Tomas U. Ganiron

Date submitted\ 18-5-2010Next

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What is Risk Management?

Who uses Risk Management?

How is Risk Management used?

Risk Management in Customs

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Good management practice

Process steps that enable improvementin decision making

A logical and systematic approach

Identifying opportunities

Avoiding or minimising losses

What is Risk Management?

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Risk Management is the name givento a logical and systematic methodof identifying, analysing, treatingand monitoring the risks involved in

any activity or process.

What is Risk Management?

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Risk Management is amethodology that helps managersmake best use of their available

resources

What is Risk Management?

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Risk Managementpractices are widely used

in public and the privatesectors, covering a widerange of activities oroperations.

These include:

Who uses Risk Management?

Finance andInvestment

Insurance Health Care

Public

Institutions

Governments

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Effective Risk Managementis a recognised and valued skill.

Educational institutions have formalstudy courses and award degrees in RiskManagement.

The Risk Management process is wellestablished. (International RM processstandards.)

Who uses Risk Management?

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Risk Management isnow an integral part of business

planning.

Who uses Risk Management?

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The Risk Management

process steps are ageneric guide forany organisation,regardless of the

type of business,activity or function.

How is Risk Management used?

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There are7steps

in the RMprocess

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The basic process steps are:

Establish the context

Identify the risks

Analyse the risks

Evaluate the risks

Treat the risks

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Risk is dynamic and subject to constantchange, so the process includescontinuing:

Communication & consultation

Monitoring and review

and

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The Risk Management process:

The strategic and organisational contextin which risk management will takeplace.

For example, the nature of yourbusiness, the risks inherent in your

business and your priorities.

Communicate & consult

Establish the context

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The Risk Management process:

Communicate & consultMonitor and review

Defining types of risk, for instance,Strategic risks to the goals and

objectives of the organisation.

Identifying the stakeholders, (i.e.,whois involved or affected).

Past events, future developments.

Identify the risks

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The Risk Management process:

Communicate & consultMonitor and review

Analyse the risks

How likely is the risk event to happen?

(Probability and frequency?)What would be the impact, cost orconsequences of that event occurring?(Economic, political, social?)

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The Risk Management process:

Communicate & consultMonitor and review

Evaluate the risks

Rank the risks according to

management priorities, by riskcategory and rated by likelihood andpossible cost or consequence.

Determine inherent levels of risk.

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The Risk Management process:

Treat the risks

Develop and implement a plan with specificcounter-measures to address theidentified risks.

Consider:

Priorities (Strategic and operational)

Resources (human, financial and technical)

Risk acceptance, (i.e., low risks)

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The Risk Management process:

Document your risk management plan anddescribe the reasons behind selecting the

risk and for the treatment chosen.

Record allocated responsibilities, monitoringor evaluation processes, and assumptions onresidual risk.

Communicate & consultMonitor and review

Treat the risks

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The Risk Management process:

Communicate & consult

Risk Management policies and decisionsmust be regularly reviewed.

Monitor and review

In identifying, prioritising and treating risks,organisations make assumptions and decisions

based on situations that are subject tochange, (e.g., the business environment,trading patterns, or government policies).

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TheRisk Management process:

Risk Managers must monitor activities andprocesses to determine the accuracy of

planning assumptions and the effectivenessof the measures taken to treat the risk.

Methods can include data evaluation,

audit, compliance measurement.

Communicate & consult

Monitor and review

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The Risk Management process:

Establish the context

Identify the risks

Analyse the risks

Evaluate the risks

Treat the risks