Fundamentals of Risk Management and Risk Champion
Fundamentals of Risk Management and Risk Champion
OBJECTIVES
- Organizational performance: How risk management can assist organizations to achieve their objectives and optimize decision making.
- Governance and sustainability: The benefits of risk management and its relationship with governance, assurance, and sustainability.
- Internal and external risk exposure: The types of risk faced by an organization and the concepts of positive and negative risk.
- ISO 31000: Risk management principles, framework and processes.
- Culture: The importance of culture, communication, and behavior in an effective risk management structure.
- Maturity: How to assess your organization’s risk maturity and identify where improvements can be made.
- Workshops: Facilitation techniques to make your risk workshops interactive, efficient, and effective.
- Assessment: Assessing risk and selecting appropriate actions and controls using key tools, such as risk registers, risk bow-ties, and risk matrices.
- Communication: How to communicate risks to all levels of your organization, and to external stakeholders.
- Appetite and tolerance: How to determine your organization’s appetite and tolerance for risk
WHO SHOULD ATTEND?
- Anyone new to risk or wishing to enter the risk profession.
- Executives and Heads of Departments to understand risk management and the role it should play within their organizations.
- Risk management practitioners of all levels requiring a refresher on recent developments in risk management.
COURSE OUTLINE
Managing Uncertainty – Concepts of uncertainty, both risk and opportunity. Uncertainty as a central feature of system development. The important concept of risk efficiency. Expectations for what to achieve with risk management. Terms and definitions. Roles of a project leader in relation to uncertainty
Subjective Probabilities – Review of essential mathematical concepts related to uncertainty, including the psychological aspects of probability
Risk Identification – Methods to find the risk and opportunity issues. Potential sources and how to exploit them. Guiding a team through the mire of uncertainty. Possible sources of risk. Identifying possible responses and secondary risk sources. Identifying issue ownership. Class exercise in identifying risks.
Risk Analysis – How to determine the size of risk relative to other risks and relative to the project. Qualitative vs. quantitative analysis.
Qualitative analysis: understanding the issues and their subjective relationships using simple methods and more comprehensive graphical methods. The 5×5 matrix. Structuring risk issues to examine links. Source-response diagrams, fault trees, influence diagrams. Class exercise in doing simple risk analysis.
Quantitative analysis: what to do when the level of risk is not yet clear. Mathematical methods to quantify uncertainty in a world of subjectivity. Sizing the uncertainty, merging subjective and objective data. Using probability math to diagnose the implications. Portraying the effect with probability charts, probabilistic PERT and Gantt diagrams. Class exercise in quantified risk analysis.
Risk Response – Possible responses to risk, and how to select an effective response using the risk efficiency concept. Tracking the risks over time, while taking effective action. How to monitor the risks. Balancing analysis and its results to prevent “paralysis by analysis” and still get the benefits. A minimalist approach that makes risk management simply, easy, inexpensive, and effective. Class exercise in designing a risk mitigation.
Risk champion Definitions, Drivers, Benefits
The Risk champion processes: Key concepts, requirements and activities.
Practical exercises and case studies to enable delegates to consolidate their learning’s and gain confidence in the risk champion process.
Integrating Risk champion into a Business