Risk Categories of Business Risk
Risk Categories of Business Risk
Risk Categories of Business Risk
ELEMENTS OF A RISK MANAGEMENT SYSTEM identifying all the risk. limitation: there are risk nga dli ma
fully considered. BLACK SWAN
• „ There should be a culture of risk awareness within the RISK.
company. Managers and employees should understand the
‘risk appetite’ of the company, and that excessive risks are • Having identified risks, it is therefore necessary to assess
not justified in the search for higher profits. the importance of each risk, in order to:
• „ There should be a system and processes for identifying, – rank the risks in order of significance (order of
assessing and measuring risks. When risks have been priority), and
measured, they can be prioritised, and measures for – identify the risks that are the most significant, and
controlling or containing the risk can be made. – identify the significant the risks where control measures are
urgently needed.
• „ There should be an efficient system of communicating
information about risk and risk management to managers IT WILL DETERMINE WHICH RISK STRATEGY TO IMPLEMENT .
and the board of directors. RISK APETITE OF THE COMPANY.
Employees of the company willl be well informed about the NAAY SAY MGA RISK NGA INSIGNIFICANT. MAS COSTLY NA
risk HINUON SIYA IF I ADDRESS.
NOT ALL RISK MAY BE ADDREESSED BY THE COMPANY.
• „ Strategies and risks should be monitored, to ensure that
strategic objectives are being achieved within acceptable
levels of risk. Risk Profiling or Risk Mapping
Naay monitoring system. • This is the stage of actually assessing the risk.
• To assess each risk, it is necessary to consider the likelihood
RISK BASED APPROACH that losses will occur as a consequence of the risk, and the
• It is an approach to decision-making based on a detailed size or amount of the loss when this happens.
evaluation of risks and exposures, and policy guidelines on
the level of risk that is acceptable (risk appetite). Sample risk map
• The risk-based approach takes the view that some risk must
be accepted, but risk exposures should be kept within
acceptable limits
We will not be addressing all risk identified but identify the
priority, and the pinaka risky area. Just monitor it
Action plan
Monitor the risk
uNEDING CYCLE NI.
AFTER MONITORING KAY MO IDENTIFY NASAD MOS MGA
RISK NGA WALA NA IDENTIFY.
THEN CHECK TONG MGA RISK NGA NEED UG IMPROVEMENT
SA ACTION PLAN.