Risk Management Techniques · 2019. 8. 26. · •IEC 31010:2019 . Risk management -- Risk assessment techniques. Process of Risk Management. Types of Risk Assessment Techniques •

Risk Management

Techniques

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An unwanted event with certain

PROBABILITY and CONSEQUENCE

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Business Challenge

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Governance Challenge:

The Board's Role in

Crisis and Risk

Management

Risk of reputationThe World..

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Managing Risk – The Business Case

Realising Reward– The Business Case

Evolution of Business Risk

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Occupational Health & SafetyRisk Management Standards

• ISO 45001:2018 Occupational health and safety management systems Requirements with guidance for use

• ISO Guide 73:2009 Risk management - Vocabulary

• ISO 31000:2018 Risk management – Guidelines, provides principles, framework and a process for managing risk

• IEC 31010:2019 Risk management -- Risk assessment techniques

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Process of Risk Management

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Types of Risk Assessment Techniques

• Risk identification

• Consequence analysis

• Qualitative, semi-quantitative or quantitative probability estimation

• Assessing the effectiveness of any existing controls

• Estimation the level of risk

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Different methods

1. Look Up methods - Checklist, preliminary hazard analysis

2. Supporting methods - Delphi technique, what if

3. Scenario analysis - Root cause analysis, fault tree, event tree

4. Function analysis - FMEA, FMECA, HAZOP

5. Controls assessment - LOPA, Bow Tie

6. Statistical methods - Markov, Monte – Carlo

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Factors influencing selection of risk assessment techniques

• Complexity of the process/hazards & the methods needed to analyse it

• The nature and degree of uncertainty of the risk assessment based on the amount of information available and what is required to satisfy objectives

• The extent of resources required in terms of time and level of expertise, data needs or cost

• Whether the method can provide a quantitative output

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Residual RiskRisk appetite/acceptance level

ALARP as low as reasonably

practicable

SFAIRPso far as is reasonably

practicable

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Residual RiskRisk appetite/acceptance level

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Integrated response to adverse events

Performance linked matrixRapid escalationCultural transformation underwayBottom up proactive

System

Stage 4

Tone set at the top

Policies, procedures, risk authorities defined and communicatedBusiness FunctionPrimary qualitativeReactive

Top Down approach

Stage 3

Risk Intelligent

Built in decision making

Risk interaction managed withIncentivesIntelligent risk takingSustainable

‘ Risk management is everyone's job’

Stage 5Risk Maturity Model

Ad hocChaotic

Depends primarily on individual efforts, Capabilities and verbal wisdom

Tribal and heroic

Stage 1

Reaction to adverse events by specialist

Discrete roles and established for small set of riskTypically for compliance and insurance

Specialist silos

Stage 2

Unrewarded riskRewarded Risk