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Presentation - 2025

The presentation discusses the importance of risk management, defining various types of risks including compliance, hazard, control, and opportunity risks. It emphasizes the need for organizations to understand and manage these risks to make informed strategic decisions, minimize potential disruptions, and embrace opportunities for growth. Additionally, it highlights the significance of risk assessment in decision-making processes and the balance between managing risks and fostering innovation.

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Besra Saputra
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15 views19 pages

Presentation - 2025

The presentation discusses the importance of risk management, defining various types of risks including compliance, hazard, control, and opportunity risks. It emphasizes the need for organizations to understand and manage these risks to make informed strategic decisions, minimize potential disruptions, and embrace opportunities for growth. Additionally, it highlights the significance of risk assessment in decision-making processes and the balance between managing risks and fostering innovation.

Uploaded by

Besra Saputra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Risk

Management
PRESENTATION - 2025

GILANG BAGUS PRAYOGA

MARLIANO ANDREA PANGESTU


1 What risk is and why it is
important
Marliano andrea pangestu

C1C022127

Risk is an opportunity as
2
well as a threat

Gilang bagus prayoga


C1C022117
What risk is and why
it is important
Definitions of risk
Types of risks

01 compliance (or
mandatory) risks; 03 control (or
uncertainty) risks

opportunity (or
02 hazard (or pure) risks 04 speculative) risks.
Levels of risk

Inherent level of risk

Current or residual level of risk

Current or residual level of risk


Classification systems

timescale – both at source of the risk, for


01 impact and after the
event
03 example counterparty or
credit risk

nature of the impact


02 04
component or feature
and/or likely magnitude that will be impacted
of the risk
Risk likelihood and
impact
Risk likelihood and impact (or magnitude) are best
demonstrated using a risk matrix. This is a
fundamentally important risk management tool and
can be produced
in many formats. Whatever format is used, the
basic style plots the likelihood of an event against the
impact (or magnitude) should the event materialize.
Why understanding risk
is important

Strategy Tactics Operations Compliance


Because events that can
Because the risks Because consideration will This will be enhanced
cause disruption will be
associated with have been given to identified in advance
because the risks
different strategic selection of the tactics and associated with
and actions taken to
options will be fully the associated risks failure to
reduce their likelihood of
analysed, better involved, available achieve compliance
occurring, the damage
strategic decisions alternatives can be with statutory and
caused by
customer obligations
will be reached. evaluated. these events will be limited
will be addressed.
and the costs contained.
Impact of hazard risks
Risk management has its longest history and earliest origins in the
management of hazard risks. Hazard risks undermine objectives, and the level
of impact of such risks is a measure of their significance. Hazard risks are often
insurable as they can only have a negative outcome.
Hazard risk management is concerned with issues such as health and safety at
work, fire prevention and avoiding the consequences of defective products.
Hazard risks can cause disruption to normal operations, as well as resulting in
increased costs and poor publicity associated with disruptive events.
Risk is an
opportunity as
well as a threat
Four types of risk
analysis of the risks
exp : owning a car
Compliance risks
1 Insufficient and/or inadequate third-party car insurance
2 inattentive or aggressive driving results in traffic offence(s)
3 Tyres in poor condition and other maintenance obligations

hazard risks
1 You pay too much for the car or it is in poor condition
2 You are involved in a collision or road accident
3 The car gets stolen or vindictively damaged
control risks
1 Cost of borrowing money to buy the car could change
2 Price of fuel (petrol or diesel) could go up or down
3 Maintenance, breakdown and repair costs will vary
opportunity risks
1 You can travel more easily than depending on others or using public transport
2 Enhanced job opportunities because you will be more mobile
3 Save money on other forms of public transport
Timescale of risk impact
Long-term
In general terms, long-term risks will impact over years,When a decision is taken
to launch a new product, the result of that decision (and the success of the
product itself) may not be fully apparent for some time.

Medium-term
Medium-term risks have their impact some time after the event occurs or the
decision is taken, and typically this will be about a year later. Medium-term risks
are often associated with projects or programmes of work

Short-term
Short-term risks have their impact immediately after the event occurs. Accidents
at work, traffic accidents, fire and theft are all short-term risks that have an
immediate impact and immediate consequences as soon as the event has
occurred
Minimize compliance risks
Organizations will be aware of the wide range of compliance requirements that they
have to fulfil

For example, organizations operating in the gambling or gaming industry .Failure to


comply with regulatory requirements may result in the ‘licence to operate’ being
withdrawn by the regulator

Generally speaking, organizations will work towards ensuring full compliance with all
applicable rules and regulations, and thereby minimize the compliance risks.
Mitigate hazard risks

Organizations accept certain risks if the cost of elimination is too high.


Health and safety risks must be minimized in compliance with the law.
Risk reduction is considered based on cost and benefits.
Example: An automatic braking system on trains can reduce accidents, but the cost
may not be justified.
Minor office theft is often tolerated because prevention costs more than the losses.
Mitigate hazard risks

Types of Hazard Risks: Risks are categorized into people, premises, processes, and
products, all of which can disrupt operations.
Risk Management: Focuses on preventing loss, limiting damage, and controlling
recovery costs.
Insurance as Protection: Helps cover financial losses, but poor risk management can
increase insurance costs.
Risk Tolerance: Organizations must set acceptable risk limits and insure against major
losses.
Manage uncertainty (or control) risks

Definition of Control Risks: These risks arise from uncertainty, which is any deviation from expected
outcomes in a project or process.
Managing Uncertainty: Every project involves some level of uncertainty, so organizations should
prepare contingency funds and extra time in project schedules.
Control Implementation: Organizations must allocate resources to identify, implement, and
respond to control risks effectively.
Role in Risk Management: Internal auditors and accountants focus on control management to
safeguard company assets and minimize risk impact.
Balancing Control and Innovation: Too much focus on control can suppress innovation and
entrepreneurship, making risk tolerance an important consideration.
Controllable vs. Uncontrollable Risks: Identifying which risks can be managed and which cannot is
key to effective business risk management.
Embrace opportunity risks
Opportunity risk refers to the risks involved in pursuing new business opportunities, such as launching
new products, improving efficiency, or making strategic changes.
Risk and Decision-Making: Organizations must assess their risk appetite—how willing they are to
take risks—and determine if they have the necessary resources to seize opportunities.
Managing Opportunity Risks: If an organization lacks resources, it can explore mitigation strategies
like partnerships or joint ventures to share the risk.
Role of Leadership: Even if an organization has the appetite for an opportunity, the management
must ensure it has the capacity to support the decision effectively.
Opportunity Management: This approach focuses on maximizing the benefits of entrepreneurial
risks and is closely linked to strategic planning.
Importance in Business Growth: Organizations must take calculated risks to grow and remain
competitive, as opportunity risks can enhance long-term success.
Thank You
FOR YOUR ATTENTION

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