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Module 1

The document outlines a course on Risk Management led by Dr. Ibrahim Rostom at the Arab Academy for Science, Technology & Maritime Transport. It covers various modules including risk concepts, project phases, risk management standards, and tools, emphasizing the distinction between business risks and project risks. The course aims to equip participants with the knowledge to identify, classify, and manage risks effectively within organizations.

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MouStafa Mahmoud
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33 views21 pages

Module 1

The document outlines a course on Risk Management led by Dr. Ibrahim Rostom at the Arab Academy for Science, Technology & Maritime Transport. It covers various modules including risk concepts, project phases, risk management standards, and tools, emphasizing the distinction between business risks and project risks. The course aims to equip participants with the knowledge to identify, classify, and manage risks effectively within organizations.

Uploaded by

MouStafa Mahmoud
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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Arab Academy for Science, Technology

& Maritime Transport

Risk Management

DR. Ibrahim Rostom

1
Activity 1
Introduce yourself

2
Course Objectives Vs Learning Outcome

3
Course Contents

▪ Module 1 : Introduction To Risk Concepts


▪ Module 2 : Understanding Project Phases and Risk Classification
▪ Module 3 : Risk Management Standards , Principles and Framework
▪ Module 4 : Risk Management Process
▪ Module 5: Risk Management Tools & Techniques
▪ International Standard ISO 31000 : 2018

4
Module 1
Introduction To Risk Concepts

5
Most Valuable US Companies 100
Years

6
Examples of Megatrends

7
What is Risk ?

▪ An undesirable situation or circumstance that has both a


likelihood of occurring and a potentially negative
consequence.

8
Risk With a Positive Impact

9
What Happen If ?

10
What Happen If You Don’t Understand
Your Organization ?

11
What Happen If You Don’t Understand
Your Organization ?

12
What is Project Risk ?

13
Business Risks vs. Project Risks

▪ A business organization has to manage both business risks


and project risks. But there is a significant difference between
the two

▪ When you talk about risk in the context of business, it could


be anything that has the potential of threatening the
generation of profits at the predetermined target levels.
Business risks could be quite dangerous for the long-term
sustainability of the business.

14
Business Risks vs. Project Risks

▪ Business risks are largely about the decisions related to


products and services offered in the market. When a
company decides to manufacture and sell a specific
product, there is always a risk with regards to the
product not working as well as the company had
expected. Other examples of business risks are changes
in raw material costs, changes in shipping charges, new
technological developments and so on.

▪ To put it very simply, business risks are typically more


general as compared to project risks. Also, they would
have an impact on nearly all aspects of the business.

15
Classification of Business Risks

Business risks can be placed in two broad categories:

▪ Pure Risks: negative scenarios over which a company has


zero control

▪ Speculative Risks: possible outcomes (positive or negative)


of decisions and actions

16
Project Risks

▪ Project risks are different from business risks in the sense


that they refer to an uncertain condition/event that may
affect one or more project objectives.

17
Risk Management

18
Project Risk Management as a subset of
Enterprise Risk Management

19
Which of These Have High Risks ?

20
Workshop 1

▪ Consider the decision to drive or fly on a


business trip. Determining factors for which
risks are worth taking and which risks are not?

21

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