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READING LIST
Hopkin, Paul (2010); Fundamentals of Risk Management; Kogan Page
Chapters 1 to 4
Name of Risk
Statement of Risk (scope of risk and events)
Nature of Risk
Stakeholders in the Risk
Risk Attitude, Appetite, Tolerance
Likelihood and Magnitude
Control Standard
Incident Experience
Responsibility
Recommendations
Implementation of improvements
Auditing Responsibilities
The inherent level of risk is defined as the level of risk which is present before
any actions have been taken to change the likelihood or magnitude of the risk
itself.
MANAGED RISK
INHERENT RISK
Traffic lights
Zebra Crossing
Police/Warden assisted crossings for Schools
Gross (Inherent)
risk
Controls to reduce
likelihood
Likelihood
4
3
2
Controls to reduce
impact
1
Net (Residual)
risk
Impact
MAGNITUDE (Impact)
LIKELIHOOD (Probability)
After the Financial Crisis of 2008 the importance given to Risk and its impact
on organisations was greatly enhanced.
Proactive Approach to Risk and Risk Management allows organisations to
achieve:
1. More Efficient Operations
2. More Effective Processes
3. More Efficacious Strategies
Risk Exposure
Potential Reward
MAGNITUDE
LIKELIHOOD
HAZARD RISK
CONTROL RISK
OPPORTUNITY RISK
HAZARD RISK
Pure risk
Theft, fire, flood
etc
Categories of Disruption
People
Premises
Assets
Suppliers
Information Technology
Communications
CONTROL RISK
Uncertainty
Project Management
OPPORTUNITY RISK
Positive Risk
Speculation, Investment,
business relocation
Thank you
Mark L Zammit MBA (Henley) CIRM
Email: mzamm13@um.edu.mt