What We Talk About

When We Talk About Risk

Presentation on Risk Management
David Jayson Oquendo
BSEEN V MSU-GSC
ES 92
THE GOALS OF THIS
PRESENTATION

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 1 Introduction

2 What is Risk Management?

TABLE OF 3 How is Risk Management done?

CONTENTS
4 How/When can I apply it?

5 Conclusion

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 1
INTRODUCTION

What is Risk?
Before we can understand
Risk Management, we have
to understand what risk is.
The word risk is said to be derived from the early
Italian risicare which means “to dare”
Dictionaries confirm that the Latin word comes from
a Greek navigation term rhizikon, rhiza which
meant "root, stone, cut of the firm land" and was
a metaphor for "difficulty to avoid in the sea".
Today, risk is defined as the possibility of loss or
gain.
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 Risk is an event that, if it occurs, adversely affects

What is Risk? the ability of a project to achieve its outcome

objectives [1].

Before we can understand Risk management is the process of identifying risk,

assessing risk, and taking steps to reduce risk to an
Risk Management, we have
acceptable level [2].
to understand what risk is.

1. Garvey, P.R., 2008, Analytical Methods for Risk Management: A Systems Engineering
Perspective, Chapman-Hall/CRC-Press, Taylor & Francis Group (UK), Boca Raton, London, New
York, ISBN: 1584886374.

2. Stoneburner, G., A. Goguen, and A. Feringa, July 2002, Risk Management Guide for Information
Technology System, National Institute of Standards and Technology, Special Publication 800-30, p. 1.

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 Risk can be described in terms of
probability (the possibility of risk),

What is Risk? consequence (the loss or gain), and time

frame.
Before we can understand • Probability is the likelihood that the
consequence will occur
Risk Management, we have • Consequence is the effect of an
to understand what risk is. unsatisfactory outcome
• Time Frame refers to when the risk
will occur during the product/project
life cycle

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 3 Things we need
to come to terms with
RISKS CAN BE 02 01 ALL PROJECTS
KNOWN OR HAVE RISK
UNKNOWN
KEEP IN
MIND!

A RISK THAT IS 03
100% CERTAIN
IS NO LONGER A
RISK.
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 THREAT vs
OPPORTUNITY
THREAT OPPORTUNITY
A risk, or the act of risking, may be A risk, or the act of risking, may be
characterized as the presence of a threat. characterized as the presence of an
An obstacle or a problem that might arise opportunity. A chance where one can
in the future benefit from if one proceeds to make the
correct decisions and actions.

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2
What is Risk
Management?
RISK MANAGEMENT
Risk management is simply the identification, assessment and prioritization of
risks, followed by a coordinated and economical application of resources to
minimize or control the probability of occurrence and the impact of negative
events, as well as to maximize the realization of opportunities.

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 3
HOW IS RISK
MANAGEMENT
DONE?
5 KEY PHRASES

To fully understand risk management, here are five key

phrases that will help anyone to understand the general
idea of risk management.

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SIX QUESTIONS TO ASK
IN RISK MANAGEMENT
1 2 3

What am I trying What might Which of those

to achieve? affect me? that might affect
me are most
important?

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4 5 6
What shall we Did the actions What changed
do about it? we took work? since the last
time we took
action?

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 Threats and Opportunities
Risk identification should concentrate on the identification of
hazards, threats, vulnerabilities, etc., that could negatively affect

RISK
work efforts or plans, OR opportunities that may improve or a
project or performance

IDENTIFICATION Review of Objective Setting

When identifying risks, one must go back to the objective setting
and trying to figure out if the risks identified are really applicable to
the objective setting and if they are at all, realistic.

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 Probability
In risk analysis, we assess the likelihood of the risks happening.
This includes determining whether or not the risk is statistically
probable.

Cause and Effect

RISK In risk analysis, we deal with cause and effect all the time ask risks
themselves have causes and effects. In assessing risks, one must
take these two into consideration in anticipating the risk and

ANALYSIS figuring out its impact on the task at hand.

Time Frame
Assessing the urgency of the action to be taken in response to
risks is one of the most important parts of risk management. One
must determine at which time frame a risk might occur (long,
medium, short, or imminent).

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 Strategy Employment
In risk analysis, we also figure out the appropriate strategy to apply
in order to avoid a threat or exploit an opportunity.

RISK
ANALYSIS Review of History
Reviewing history can also help in risk analysis as it provides
insight as to the cause of risks and their effects. This helps in the
forecast of the events and can greatly assist one in risk
management.

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4
HOW/WHEN
CAN I APPLY
IT?
Risk
Management
Applications
Personal Development
One can improve himself through efficient Risk Management. This
enables a person to be able to do risk management intuitively and through
pure instinct.

Team Building
When working in teams, Risk Management can always come in handy.
This will allow interpersonal development and enable the individual team
dynamics to be reinforced.

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 5
CONCLUSION
 AT THE END
Risk Management is an indispensable skill for us not only as future engineers
but also as fully-functional adults who take no crap from anyone, not even the
universe.
When we are able to take a hold of our lives we become effective individuals,
and consequently, effective leaders. The skill and virtues in Risk Management
can help us with that.

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