1.

What is Risk Response Development and describe its components

2. response strategies are designed and implemented in ways that do not harm the
community or providers and do not worsen the impact of the emergency
3.

4. What is a contingency plan?

5. A contingency plan is a course of action designed to help an organization respond

effectively to a significant future incident, event or situation that may or may not happen.
6. A contingency plan is sometimes referred to as "Plan B" or a backup plan because it can
also be used as an alternative action if expected results fail to materialize. Contingency
planning is a component of business continuity (BC), disaster recovery (DR) and risk
management.

Risk response is concerned with developing strategies to reduce or eliminate the threats and
events that create risks. Risk response should also make provision for the exploitation of
opportunities to improve the performance of the Institution.
Risk response plans identify responsibilities, schedules, the expected outcome of responses,
budgets, performance measures and the review process to be set in place.
The risk response plan usually provides detail on:
 actions to be taken and the risks they address;
 who has responsibility for implementing the plan;
 what resources are to be utilized;
 the budget allocation;
 the timetable for implementation; and
 details of the mechanism and frequency of review of the status of the response plan.
Risk response development involves defining enhancement steps for opportunities and responses
to threats. These generally fall into three categories:

 Generalizing and extending the four common threat strategies results in the following
concepts:

 • Avoidance strategies that seek to remove threats are actually aiming to eliminate
uncertainty. The upside equivalent is to exploit identified opportunities—removing the
uncertainty by seeking to make the opportunity definitely happen.
 Avoidance - eliminating a specific threat, usually by eliminating the cause.
  • Risk transfer is about allocating ownership to enable effective management of a threat.
This can be mirrored by sharing opportunities—passing ownership to a third party best
able to manage the opportunity and maximize the chance of it happening.
 • Mitigation seeks to modify the degree of risk exposure, and for threats this involves
making the probability and/or impact smaller. The opportunity equivalent is to enhance
the opportunity—increasing its probability and/or impact to maximize the benefit to the
project.
 Mitigation - reducing the expected monetary value of a risk event by reducing the
probability of occurrence, reduce the risk event value, or both.

 • The accept response to threats includes the residual risk in the baseline without special
measures. Opportunities included in the baseline can similarly be ignored—adopting a
reactive approach without taking explicit actions.
 Acceptance - accepting the consequences.

2 What is scope of risk management? & to what extent it goes?

Risk management is the process of identifying, assessing and controlling threats to an organization's
capital and earnings. These risks stem from a variety of sources including financial uncertainties, legal
liabilities, technology issues, strategic management errors, accidents and natural disasters.

A Risk Management Program starts with identifying the possible risks associated with a product or with
the process used to develop, manufacture, and distribute the product. An effective quality risk
management ensures the high quality of drug product to the patient.

1. In business, risk management is defined as the process of identifying, monitoring and managing
potential risks in order to minimize the negative impact they may have on an organization.

2.

3. Financial uncertainty - the most difficult to manage in terms of risk, is the elimination of
uncertainties. This risk involves primarily the financial viability of any organization and failure to
manage uncertainties would greatly hurt & affect the financial goals of the firm. Steps involving
the management of this scope entails identification n the level of uncertainty, categorizing them
into small, medium & big to be able to swing resources & efforts of resolving risks based on
"Urgency, Importance & Magnitude"

4. Legal liabilities - This scope involves the process of managing risks on legal matters which are
adverse to government policies, practices & laws of the land. This process aims to reduce the
frequency & severity (if not totally illuminate) of such violations.
 5. Accidents - this scope has been identified as the risk that should be prioritized because it
primarily involves the most important resources of the organization, These are the undesired
incidents that involve damage to the property, causes personal injuries and disrupts the
operations significantly. Management of this risk involves 'Identification of hazards & what
causes them", 'assessing the risk', 'implement risk control', and 're-assessing the risk'

 Other scopes of Risk Management may involve:

-Natural disasters.

-Strategic Management Process

Five Essential Steps of A Risk Management Process

1. Identify the Risk
2. Analyze the Risk
3. Evaluate or Rank the Risk
4. Treat the Risk
5. Monitor and Review the Risk

3 Discuss basic Loss forecasting approaches

Loss Forecasting
As noted, a risk manager must also identify the risks the organization faces, and then analyze the
potential frequency and severity of these loss exposures. Although loss history provides valuable
information, there is no guarantee that future losses will follow past loss trends. Risk managers
can employ a number of techniques to assist in predicting loss levels, including the following:

 Probability analysis
 Regression analysis
 Forecasting based on loss distributions

4. What is financial analysis & what are the main steps needs to be followed in
risk analysis process?

Financial analysis is the process of evaluating businesses, projects, budgets, and other
finance-related transactions to determine their performance and suitability. Typically,
 financial analysis is used to analyze whether an entity is stable, solvent, liquid, or
profitable enough to warrant a monetary investment.

5 steps for financial risk analysis

Financial risk analysis is the assessment of the likelihood of a threat occurring and its
possible impact. Hence, its importance in risk management.

Below are the 5 steps to manage financial risks:

Step 1: Identify key risks

To begin the financial risk analysis, identify all the risk factors faced by your business.
These risk factors include all aspects that affect competitiveness (costs, prices, inventory,
etc.), changes in the industry to which the company belongs, government regulations,
technological changes, changes in staff, etc.

Step 2: Calculate the weight of each risk

Prioritizing risks is critical to the efficient allocation of resources and efforts. That way,
you can create a plan in case a threat materializes.

Step 3: Create a contingency plan

Analyze what you need to do to resolve the risks of item 1 and create specific tasks to
mitigate the impacts. Remember that not all risks can be faced in the same way. In fact,
you may not be able to control them all. That is why the contingency plan must be based
on the risk appetite and tolerance level established by the company.

Step 4: Assign responsibilities

Although it is not possible to assign responsibilities for each risk, try as much as possible
to have a person in charge of monitoring critical points and their evolution over time. At
this point, avoid centralizing all responsibilities in one person. Delegate tasks to the most
appropriate staff.

Step 5: Set expiration dates

Mitigation plans cannot be applied indefinitely, since threats can multiply and affect
more processes. This somehow determines the actions to be taken, as they must be based
on the time needed to carry out each task.

5 What is Risk management decision making and discuss briefly risk management and
decision-making in relation to sustainable development
 Risk management encompasses the identification, analysis, and response to risk factors
that form part of the life of a business. Effective risk management means attempting to
control, as much as possible, future outcomes by acting proactively rather than
reactively.Risk management decision making is selecting the best alternatives or ranking
the alternatives for a specific risk management goal. For example identifying risks face is
risk management. Choosing the best method to identify risk with the aim to expedite the
risk management process is risk management decision making.

Risk management is the process of identifying risks and planning actions to manage the
risks. The identified risks are assessed and prioritized. Only significant risks are
managed. Risk management decision making is a process to select the best alternatives or
rank .

The risk management process helps decision makers explore and select the best
alternatives related to a strategic choice. The overall goal is for business leaders to
consider all the potential consequences of a decision – or all decision alternatives for that
matter – before making an informed and intelligent judgment. alternatives for a specific
risk management goal.

6 What is Risk Management Strategies and discuss briefly the most commonly known
risk management strategies in business context

A risk management strategy is a structured approach to addressing risks, and can be used in
companies of all sizes and across any industry. Risk management is best understood not as a
series of steps, but as a cyclical process in which new and ongoing risks are continually
identified, assessed, managed, and monitored.

A risk management strategy is a key part of the risk management lifecycle. After identifying
risks and assessing the likelihood of them happening, as well as the impact they could have,
you will need to decide how to treat them. The approach you decide to take is your risk
management strategy. This is also sometimes referred to as risk treatment.

There are four main risk management strategies, or risk treatment options:

 Risk acceptance
 Risk transference
 Risk avoidance
 Risk reduction

Choosing the right one will mean the difference between managing each potential risk
effectively or facing serious consequences that could damage your business. Let’s take a
 closer look at what these four approaches involve and some examples of when you could use
them.

7 Define Risk Transfer and discuss common methods & Strategies?

Risk transfer is a risk management and control strategy that involves the contractual shifting
of a pure risk from one party to another. One example is the purchase of an insurance policy,
by which a specified risk of loss is passed from the policyholder to the insurer. Other
examples include hold-harmless clauses, contractual requirements to provide insurance
coverage for another party’s benefit and reinsurance.

Risk transfer refers to a risk management technique in which risk is transferred to a third
party. In other words, risk transfer involves one party assuming the liabilities of another
party. Purchasing insurance is a common example of transferring risk from an individual or
entity to an insurance company.

Methods of Risk Transfer

There are two common methods of transferring risk:

1. Insurance policy

As outlined above, purchasing insurance is a common method of transferring risk. When an

individual or entity is purchasing insurance, they are shifting financial risks to the insurance
company. Insurance companies typically charge a fee – an insurance premium – for
accepting such risks.

2. Indemnification clause in contracts

Indemnification Contracts can also be used to help an individual or entity transfer risk.
Contracts can include an indemnification clause – a clause that ensures potential losses
will be compensated by the opposing party. In simplest terms, an indemnification clause
is a clause in which the parties involved in the contract commit to compensating each
other for any harm, liability, or loss arising out of the contract. clause in contracts
Define Risk Coping, discuss risk coping types and strategies
8 Define Risk Coping, discuss risk coping types and strategies

Risk-coping strategies include self-insurance (through precautionary savings) and informal

group-based risk-sharing. They deal with the consequences of income risk (consumption
smoothing). Households can insure themselves by building up assets in good years, which
they deplete in bad years.

some common coping strategies

 Lower your expectations.

 Ask others to help or assist you.
 Take responsibility for the situation.
 Engage in problem solving.
 Maintain emotionally supportive relationships.
 Maintain emotional composure or, alternatively, expressing distressing emotions.

9. Discuss pros and cons of project risk management

Risk management practices come with pros and cons. One the one hand, they can improve
your ability to identify and avoid risks early; on the other, they require everyone to adhere to
strict procedures and might cost money to implement.

In the chart below, we quickly summarize the pros and cons of adopting risk management
practices for your teams:

Pros Cons
Improved avoidance and Requires strict adherence to
mitigation of risks procedure
Better identification of Impossible to anticipate
troubled initiatives everything
Helps to establish best Increased costs related to
practices for identifying and implementation and ongoing
responding to risks processes
Adding complexity to
Allows for you to make more
processes leads to more
accurate project projections
possible points of failure
Increased likelihood of
project success
Creates processes that can be
built upon and shared
Increased executive support
for initiatives