Want to make creations as awesome as this one?

Transcript

MAJOR: What is Risk Management and Why is it important?ENGLISH SUBJECT COMPLEMENT: RISK MANAGEMENT.
GROUP: 5CM2.NAMES:● GIL HERNÁNDEZ BRAYAN. 100%● HAROS MEDELLIN DAVID. 100%● PARDO GUERRERO OSCAR. 100%● VIESCAN CARREÑO ANA GLORIA. 100%TEACHER: MARÍA BELÉN VÁZQUEZ CONDE. TEAM NUMBER: 2

INSTITUTO POLITÉCNICO NACIONAL ESCUELA SUPERIOR DE COMERCIO Y ADMINISTRACIÓN.UNIDAD SANTO TOMÁS.

What is the

Risk Management?

DELIVERY DATE: Sunday, the 8th of September, 2024.

What is risk management?

It is the process of identifying, evaluating and controlling the financial, legal, strategic and profit risks of an organization.

WHY IS IT IMPORTANT?

It's important because proper risk management helps teams reduce exposure to potential threats and costs, even though it comes with its own risks. It's important because proper risk management helps teams reduce exposure to potential threats and costs, even though it comes with its own risks.

+ info

Its Impact on the Organization.

Risk management is essential because unexpected events can lead to significant financial losses or even business closure. Implementing a structured approach helps organizations manage risks effectively and capitalize on opportunities.

The risk management process.

Risk management is a system of processes and technology that enables companies to set objectives in line with values ​​and risks.

Identifying risks

It is the process by which potential threats to an organization, as well as its operations and workforce, are identified and evaluated.For example, computer security threats such as malware and ransomware.

Risk analysis and assessment.

Risk analysis involves determining the probability of an event occurring and the potential outcome of that event occurring.Risk assessment compares the magnitude of the risk and ranks it based on its importance and effect.

Risk mitigation and monitoring.

Risk mitigation is the process of planning and developing methods and options to minimize threats to project objectives. It also includes actions to address issues and impacts related to a project.Repeating and monitoring processes can help ensure that risks are covered.

Risk management limitations and rules

Risk management standards, like ISO 31 000, provide guidelines for effective practices, aiming to identify and mitigate risks. However, adopting these standards can be challenging as they may require changes to existing processes and customization to fit specific industries or businesses.

ISO: International Organization for Standardization.

It seeks to minimize losses, rather than eliminate them. While accepting the risk and consequences, it focuses on containing them and preventing them from spreading.

In the event of a potential loss, the risk is transferred from the individual to the group. A corporation is an example of risk sharing: investors pool their capital and each assumes a portion of the company's risk.

It is a method of mitigating risk by not undertaking activities that may affect the organization.

The most common actions in the face of risk.

Risk avoidance.
Risk reduction.
Risk sharing.

Once risk distribution, transfer and reduction measures have been implemented, some risk will usually remain as it is impossible to eliminate it completely. This is called residual risk.

The transfer of a risk to a third party. For example, insurance to cover possible damage to property, where the risks associated with the property are transferred to the insurance company.

The most common actions in the face of risk.

Transferring risk.
Risk acceptance and retention.

References:

  • Eye on Tech. (February 26, 2020). What is Risk Management and Why is it Important? [video]. YouTube. https://www.youtube.com/watch?v=-Yd3gXb35kU
  • Harvard Business School. (October 24, 2023). What Is Risk Management & Why Is It Important?. Recovered from: https://online.hbs.edu/blog/post/risk-management.
  • IBM. (s. f.). What is Risk Management?. Recovered from: https://www.ibm.com/topics/risk-management.
  • TechTarget. (s. f.). What is risk management and why is it important?. Recovered from: https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important.

Thank you for your time!

What is Risk Management and Why is it Important?

ENLACE