Module 2
Module 2
1
Project Definition
2
The 5 Phases of Project
Management
3
What Does Process Analysis Mean?
4
Remember
5
What is Risk?
6
Risk Vs Opportunity
7
Risk Management
8
Classifying Risk
▪ Strategic Risk :
A possible source of loss that might arise from the detection of an
unsuccessful business plan. (For example, strategic risk might arise
from making poor business decision, from the substandard execution of
decisions, from inadequate resource allocation, or from a failure to
respond well to changes in the business environment.
9
Classifying Risk
▪ Operational Risk:
Is the risk that is not permanent in financial, systematic or market-
wide risk. It is the risk remaining after determining financing and
systematic risk, and includes risks resulting from breakdowns in
internal procedures, people and systems.
10
Classifying Risk
▪ Compliance risk
11
Classifying Risk
▪ Reporting risk
The communication of risk information in all phases of the risk
management process, namely identification, measurement,
management and monitoring. Risk reporting includes at least the
reporting of:
▪ Total exposures against targets/strategies;
▪ compliance with limit system;
▪ key risk indicators; and
▪ review findings.
12
Classifying Risk
▪ Reputational risk:
The risk of harm of the group's image in the community or the long-
term trust placed in the group by its shareholders as a result of a
variety of factors, such as the group's performance, strategy execution,
ability to create shareholder value, or an activity, action taken by the
group. This may result in loss of business and/or legal action.
13
Other Risk Categories
14
Residual Risk
▪ Residual risk is the threat that remains after all efforts to
identify and eliminate risk have been made.
15
The Diagram
16
The Diagram
17
Discussion
18