S.M.R.K-B.K-A.

K Mahila Mahavidyalaya Project on: Risk Management

By: Kiran Umarani BMS-I

Quotes
It seems to be a law of nature, inflexible and inexorable, that those who will not risk cannot win. -John Paul Jones To win without risk is to triumph without glory. -Pierre Corneille Risk and time are opposite sides of the same coin, for if there were no tomorrow there would be no risk. Time transforms risk, and the nature of risk is shaped by the time horizon: the future is the playing field. - Peter Bernstein

What is risk?
A probability or threat of a damage, injury, liability, loss, or other negative occurrence that is caused by external or internal vulnerabilities, and that may be neutralized through preemptive action. Risk is the probability that a hazard will turn into a disaster. Vulnerability and hazards are not dangerous, taken separately. But if they come together, they become a risk or, in other words, the probability that a disaster will happen.

What is Risk Management?

Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management is defined as identification, assessment and economic control of those risks that endanger the assets and earning capacity of a business.

Aims of Risk Management

Improvisation of targets Minimizing of risk factors Proper utilization of time Efficiency of time

To be transparent and inclusive

Types of risk management

Operational Risk Management Financial Risk Management Market Risk Management

Bank Risk Management

Currency Risk Management Project Risk Management

Process of Risk Management

Identify the Risks Identify the Causes Identify the Controls Establish your Risk Rating Descriptors Add other Controls Make a Decision Monitor and Review

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Merits
Supporting strategic and business planning; Supporting effective use of resources; Promoting continuous improvement; Fewer shocks and unwelcome surprises; Quick grasp of new opportunities; Enhancing communication between Schools and Departments; Reassuring stakeholders Helping focus internal audit programmed etc.

Demerits
Involvement of uncontrollable variables.
Over dependence on easy methods for solving complex process. Non-information sharing between higher management and bottom group resulting into bottom group being isolated from the process.

Thank You..!!!