Fundamentals of Risk Management

Approaches to risk assessment
Risk assessment techniques
nature of the risk matrix
Risk perception
Attitude to risk
11
Risk classification systems
short-, medium- and long-term risks
nature of risk classification systems
examples of risk classification systems
FIRM risk scorecard
PestLe risk classification system
Compliance, hazard, control and opportunity
12
Risk analysis and evaluation
Application of a risk matrix
Control confidence
4ts of hazard risk response
Risk significance
Risk capacity
13
Loss control
Risk likelihood
Risk magnitude
Hazard risks
Damage limitation
Cost containment
14
Defining the upside of risk
Upside of risk
opportunity assessment
Riskiness index
Upside in strategy
Upside in projects
Upside in operations
Part FOUr
Risk response
LEARNINg OUTcOmEs FOR PART FOUR
PART FOUR FURTHER READINg
Part four case studies
Intu Properties: Insurance renewal
The Walt Disney Company: Disclosures about market risks
Australian Mines Limited: Risk assessment and management
15
tolerate, treat, transfer and terminate
the 4ts of hazard response
tolerate risk
treat risk
transfer risk
terminate risk
strategic risk response
16
Risk control techniques
types of controls
Hazard risk zones
Preventive controls
Corrective controls
Directive controls
Detective controls
17