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Risk Management Presentation

The document discusses risk management and provides definitions and concepts. It defines risk as the effect of uncertainty on objectives, measured by impact and likelihood. It categorizes risks as strategic, compliance, operational, technical, and financial. It describes risk management as identifying and assessing risks to plan and implement responses. A risk management framework is a strategy for mitigating and preventing risks. While a risk may become a problem, risk management aims to manage risks before problems occur. Reasons for risk management include achieving objectives and legal requirements. The document outlines principles, frameworks, processes, and registers for effective risk management.

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Elisha
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55 views

Risk Management Presentation

The document discusses risk management and provides definitions and concepts. It defines risk as the effect of uncertainty on objectives, measured by impact and likelihood. It categorizes risks as strategic, compliance, operational, technical, and financial. It describes risk management as identifying and assessing risks to plan and implement responses. A risk management framework is a strategy for mitigating and preventing risks. While a risk may become a problem, risk management aims to manage risks before problems occur. Reasons for risk management include achieving objectives and legal requirements. The document outlines principles, frameworks, processes, and registers for effective risk management.

Uploaded by

Elisha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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RISK MANAGEMENT

BY
CPA Elisha Germanus Fabian
Accountant II
Ardhi Institute Morogoro
0656941817
[email protected]
INTRODUCTION TO RISK
MANAGEMENT

What is a risk?
 an effect of uncertainty on objective
 Measured by impact * likelihood

Uncertainty refer to event or condition when it occur , will have impact on the achievement of an objective.
CATEGORIES OF RISKS

 Strategic risk
 Compliance/Commercial/Legal Risk
 Operational Risk
 Technical Risk
 Financial and System Risk
RISK MANAGEMENT AND RISK
MANAGEMENT FRAMEWORK

Risk management
Is the systematic process of identifying and assessing Risk and
the planning and implementing risk responses.

A risk management framework (RMF)


is a strategy for responding to, mitigating and preventing
risks in business or investments.
RISK VS PROBLEM

Is there difference between Risk and Problem?


RISK VS PROBLEM

 Risk is not about finding the causer of the problem.


 When risk occur it become a problem.

Risk Management is not for managing occurred risk but manage before its occurrence.
WHY RISK MANAGEMENT ?

 Higher assurance for achieving objectives.

“The only alternative to risk management is crisis management and


crisis management is much more expensive, time consuming and
embarrassing.”
 Legal requirement
 2010 amendments of the PFA (2001)
 Establishment of IAG Division of MoFP
 National Guidelines for Developing & Implementing Risk Mgt Framework in PSEs
(2012)National Guidelines for Fraud Risk Management in PSEs • Treasury Circular
No. 12 of 2012/2013
EMBEDDING RISK MANAGEMENT

When FULLY-EMBEDDED there will be:


I. A RISK MGT FRAMEWORK/ POLICY that is sponsored by the
PS/Board/Council
II. People buy- in (deal with culture and change mgt issues)
III. Responsibilities assigned (Chief Risk Officer/Coordinator, Champions etc.)
IV. Risk assessment conducted to create a RISK REGISTER
V. MITIGATIONS measures are proposed/planned and IMPLEMENTED
VI. Risk Mgt REPORTS are prepared and acted upon
VII. Continuous review and improvement.
RISK MANAGEMENT ARCHITECTURE

There are three sections that make up what ISO 31000 calls a risk management
architecture

The standard starts by listing a set of risk management principles. then


Use these principles to guide the establishment of the risk management
framework. Then use the framework to guide the establishment of the risk
management process.
RISK MANAGEMENT PRINCIPLE

 Should create & protect value


 Should be part of all processes
 Should be part of the decision making
 Should be used to handle uncertainty
 Should be systematic and timely
 Should be based on the best data
 Should be tailored to the environment
 Should consider human factors
 Should be transparent and inclusive
 Should be responsive and iterative
 Should support continual improvement
RISK MANAGEMENT FRAMEWORK

1. Make a commitment to risk management


2. Design the risk management framework
3. Implement the approach to risk management
4. Monitor the risk management framework
5. Improve the risk management framework Risk Management
RISK MANAGEMENT PROCESS

1. Establish your unique risk management context


2. Carry out your risk assessment process
I. Identify
II. analyze, and
III. evaluate risks
3. Formulate & Implement your risk treatment plans
RISK REGISTER

What is a risk register?


 ISO Guide 73 – document to record identified risks.
 is a principle repository for risks across the organization.
 It enables areas to profile risks, monitor controls and prioritize treatment actions.
It also facilitates standardized reporting of risks
HOW TO PREPARE RISK REGISTER

When Carrying out risk assessment process


I. Identify
II. analyze, and
III. evaluate risks
IV. Prepare a risk Register
How was the session?

THE END

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