Risk Management | Process of Risk management | How to manage Risk in Business

Summary

The video script introduces the concept of Risk Management, explaining its meaning and processes. It discusses the importance of identifying, assessing, and mitigating risks to balance operational and economic costs. The speaker outlines the steps involved in risk management, including risk identification, assessment, response planning, implementation, and monitoring. The script also mentions the availability of notes and additional resources on the speaker's YouTube channel, encouraging viewers to subscribe for more insights.

Takeaways

• 📘 Risk Management is a process to balance operational and economic costs to minimize the impact of uncertain events.
• 👨‍💼 The responsibility of managing risk lies with the risk managers, who are tasked with implementing strategies to handle uncertainties.
• 🔍 The process of risk management begins with identification, which involves recognizing and categorizing potential risks.
• 📊 Assessment is the next step, where the likelihood and impact of identified risks are evaluated to determine their significance.
• 🛠 Mitigation involves developing strategies to reduce the probability or impact of risks, ensuring they are managed effectively.
• 🔄 The response to risks should be planned, with strategies in place to deal with the occurrence of risks and minimize their effects.
• 📝 Implementation of the risk management plan is crucial, turning strategies into actions to handle identified risks.
• 👀 Monitoring is an ongoing process to track the effectiveness of the risk management plan and make adjustments as necessary.
• 📉 Reporting is essential to communicate the status of risk management to stakeholders, ensuring transparency and accountability.
• 🔄 Continuous improvement of the risk management process is key, learning from experiences to enhance future strategies.
• 🤝 Stakeholder engagement is vital for the success of risk management, as it helps in understanding and addressing their concerns.

Q & A

What is the main topic discussed in the script?

The main topic discussed in the script is Risk Management, including its definition, processes, and how to manage risks effectively.

What does the term 'Risk Management' mean as per the script?

Risk Management, as mentioned in the script, is a process that involves balancing operational and economic costs to minimize the impact of uncertainties that are not known or are known but not predictable.

What is the role of top management in Risk Management according to the script?

The script suggests that top management is responsible for managing risk, which implies that they are the ones who should oversee and implement the risk management process.

What does the script mean by 'Impact Probability' in the context of Risk Management?

In the script, 'Impact Probability' refers to the likelihood of a risk occurring and its potential negative impact. It is a measure used to assess the frequency and severity of potential losses.

What are the steps involved in the Risk Management process as described in the script?

The script outlines the Risk Management process as having several steps: Identification, Assessment, Mitigation, Monitoring, and Reporting.

What does the script suggest should be done during the Identification step of Risk Management?

During the Identification step, the script advises to identify all the risks that a business might face and to assess the uncertainties involved.

How is the Assessment step in Risk Management defined in the script?

The Assessment step, as defined in the script, involves evaluating the identified risks to understand their potential impact and to determine how to manage them effectively.

What is Mitigation in the context of Risk Management as per the script?

Mitigation, according to the script, is the process of developing strategies to reduce the likelihood and impact of identified risks.

What does the script mean by Monitoring in Risk Management?

Monitoring, as per the script, is the ongoing process of tracking the implementation of the risk management plan and ensuring that it continues to be effective.

Why is Reporting important in the Risk Management process according to the script?

Reporting is important because it communicates the effectiveness of the risk management plan to stakeholders and helps in understanding the impact of the implemented strategies.

Where can one find additional notes or resources on Risk Management as mentioned in the script?

The script mentions that additional notes or resources can be found on the speaker's YouTube channel, with the link provided in the description.