The Concept of Risk typically refers to the possibility loss of valued outstanding resources. In Business World, it is most likely a venture that an investment's perceptible actual return will be out of the ordinary than expected. For example, if I invest my money, what will be the menace that I might lose my money? Or in life, if I speed on the road, what will be the threat or danger that I may dig up? Will I lose my life or suffer pain? I can refer it to negative outcome. 

Risk leadership

RISK LEADERSHIP

Leadership always requires some level of risk taking.  Risks are necessary to make changes happen and there will always be both personal risk, risk to followers as well as to the organization or group involved.  The areas where risks are the most important to a leader are what I’ll outline below.

SWOT

Small Business Solutions for Growth & Risk Management

Expanding a small business proves difficult. Small business growth involves risk management, assessing potential problems and how to solve those problems when they arise. Risk management entails company image, personnel issues and everyday operations.

Significance

• Successful risk management gives a small business an opportunity to thrive and grow. For example, imagine the impact the Internet has had on local newspapers. Local newspapers that focus on blending e-commerce strategies into their business models will more likely enjoy growth during the Internet age.

  Prevention/Solution

  • A business plan proves essential for preventing and solving risk management issues, according to the Small Business Administration. An effective business plan involves researching your business's industry and learning from mistakes other companies have made in the past.

  Considerations

  • The SBA stresses that business plans should exist as ongoing documents. This allows business plans to address emerging problems. For instance, a local grocery store would reevaluate competition within risk management if a national chain opens a new grocery store within the same city.

    
    

    source: http://www.ehow.com/facts_7441411_small-solutions-growth-risk-management.html

  
  

The Deming Cycle (PDCA)

Source:www.hci.com.au/hcisite3/toolkit/pdcacycl.htm

RISK OF MISMANAGEMENT

Risk Decision Making

Practical Management Of The Risk Of Piracy

Relying on the several internationally adopted counter-piracy measures like application of the Best Management Practices, which is now on its 4^th version (BMP4),  the establishment of the navigational “corridor” and the support of allied naval resources, and the continual adjustment and expansion of the High Risk Area (HRA) have not been much of help as vessels are reported to have been attacked  while actually “in the corridor” and in between the escorting naval vessels. This risk increases after leaving the “corridor” and the apparent protection of the allied naval vessels, as the expansion of the high risk area exposes the vessels to greater risk of attacks.
It is for these reasons that in the absence of better and more reliable anti-piracy measures adopted internationally, shipping companies consider the hiring of armed guards as a practical and effective means of managing the risk of pirate attacks.

RISK DECISION MAKING

Risk Decision Making is a non-linear Recursive, that is most made by moving back and forth between the choices of criteria and the identification of alternatives. The alternatives available influence the criteria we apply to them, and similarly the criteria we establish influence the alternatives we will consider.

Risk Management Process

ISO 31000:2009

Environmental Risk Assessment

RISK ASSESSMENT-VITAL TO OPERATION

A Company which is going through a restructuring process has to provide forward-looking statements and information that are based on one management's beliefs. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot provide any assurance that those expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters:

• The effects of severe and rapid declines in industry conditions that have required the Company to restructure its outstanding indebtedness,
• the ability to manage and repay its substantial indebtedness,
• the ability to maintain financial ratios and comply with the financial covenants in its credit facilities,
• the ability to continue to operate as a going concern,
• the ability to effectively operate its business and manage its growth while complying with operating covenants in its credit facilities,
• the ability to generate the significant amounts of cash necessary to service its debt obligations,
• the very high volatility in the Company's revenues and costs, including volatility caused by increasing oil prices,
• excess supplies of vessels in all classes and the resulting heavy pressure on freight rates,
• the Company's vessels exceeding their economic useful lives and the risk associated with operating older vessels,
• the Company's ability to grow its vessel fleet and effectively manage its growth,
• impairments of the Company's long-lived assets, and  
• compliance with both new and existing environmental laws and regulations 

Risk in Oil damaged by vessel MV Reena

WELLINGTON—Oil from the damaged cargo vessel MV Rena has started to wash up on a popular beach on the east coast of New Zealand’s North Island, with salvagers now hoping that oil can be pumped off the ship before the weather worsens, Maritime New Zealand said on Monday.
“The weather is expected to deteriorate in the coming days, so we are working around the clock to remove the oil,” Maritime New Zealand said in a statement.
“The weather will impact on both the salvage and oil recovery effort. The forecast is for north-easterly winds increasing and this will have an effect on our response and salvage operations.”
Oil began to wash up on the popular seaside destination of Mount Maunganui midday on Monday. Environmental cleanup and rescue teams are combing the white sandy beach there and others along the coastline to deal with seabirds that have been caught up in the oil spill.
The Department of Health is erecting signs warning people to stay off the beaches and out of the water, and to not to touch anything with oil on it. Locals have been asked to stay away, and to avoid eating shellfish caught in the area.


Danny Amigable

Risk Management 101 for Small Business Owners

Risk is an inherent part of being in business. It can be managed and its adverse outcomes can be mitigated. The greatest challenge for small business owners is to find the proper balance between peace of mind and profitability. Trying to completely eliminate risk from your business is unrealistic and can be prohibitively expensive or cause you to institute policies that may be so risk averse that your business never grows.

Get started with a simple, easy to follow plan for managing and mitigating business risks and if needed expand from there. Take these steps to put an initial risk management plan into place at your company:

First: identify risks

Some risks are common to most or all businesses. Others are very specific to your business and only you as the owner can know them. Some initial risks to think about are:

• Property losses – typically occur from physical damage, loss of use and/or criminal activity.
• Business interruption losses – occurs if your business stops selling for some reason (say because of a fire). In addition to the property losses incurred, the company would not be able to produce goods and sell them. This “interruption in your business activities” can be protected.
• Liability losses – refer to legal liability for damages or injury caused to others by your company.
• Key person losses – refer to the costs associated with an important employee or owner becoming sick, disabled or dying. The impact of a key person loss on a small business can be catastrophic.
• Injury to employees – refers to the costs associated with an employee becoming injured while at work.

Second: determine your company’s vulnerability for each risk

Vulnerability is a function of probability – what are the odds that a particular risk will materialize- and cost – how much does your company stand to lose as a result. The goal of this step is to quantify which risks are worth worrying about and which ones aren’t.

Third: prepare contingency plans

Contingency planning goes beyond just buying insurance. There are many ways to manage risks:

• Implementing policies that value employee safety over speed
• Installing a security system to guard against property losses
• Avoiding transactions with dubious potential customers
• Training high potential managers on the roles and responsibilities of their superiors to protect against key person losses

Fourth: Acquire the right types of insurance

Insurance, however, should not be forgotten or minimized! It is a central part of risk management. Key types of insurance are:

• General liability insurance – Covers expenses related to legal liability for injury to a third party. Typically covers property damage, bodily injury, medical expenses and the cost of hiring legal counsel to defend your company.
• Product liability insurance – Covers expenses related to legal liability for injury or damage caused by a defective product. If your company manufactures, distributes or sells products at retail then it would be wise to obtain product liability insurance.
• Professional liability insurance – Similar to product liability insurance, but for services instead of products. This protects against malpractice, errors and negligence. It is sometimes referred to as “errors and omissions” insurance.
• Commercial property insurance – Covers the loss of and damage to business property. Property losses and business interruption losses discussed in the first step are typically covered by commercial property insurance.

Fifth: Monitor and adapt as needed

Risk management plans should be reviewed and updated regular. Taking a few days every six months to review and update it for the current conditions of your business is a wise investment. This review meeting should include the owners, department heads and (if warranted) a risk management consultant. Many times insurance companies – with an eye on reducing payouts on claims – provide hands on advice on mitigating new risks as they come along. During the update period it would be a good time to reach out to them as well.

Having a good grasp of risk management for your business will also be important if you plan to raise capital from investors. It is essential for getting them comfortable with the investment opportunity.

Reckless leaders take reckless risks; prudent leaders take calculated risks. Risk management is the “calculator.”

source: http://www.practicebuyer.com/?p=601

Questions in developing a contingency plan

1. What events may occur that require a response?
2. What disasters might happen during execution of the plan?
3. What is the worst case scenario of events for the situation?
4. What scenarios are possible for the situation?
5. What event would cause the greatest disruption of current activities and plans?
6. What happens if costs of the plan are excessive? what happens if delays occur?
7. What if key people leave the organization?
8. What are the expected moves of antagonists and competitors?
9. Who or what might impede implementation of the plan?

The Top 10 Risk for Business

The Ernst & Young Business Risk Report 2010

Why not contribute effort in the well-being of the workforce to detract from some substantial risk in an organization?

INVEST NOW......

and  enjoy a measurable return on investment with a happier and healthier workforce.

For more details go to link:
http://www.riskmagazine.com.au/article/invest-in-employee-health-to-reduce-your-risk-profile-121818.aspx
http://www.cartoonstock.com/directory/safety_officer.asp

Risk Management Process

Go to: http://www.ncoe.co.uk/risk_management_process.htm

From Problem Faced to Problem Solved

List of tools and techniques that can be used in each stage - The Deming Cycle / PDCA Cycle

read full text in http://www.hci.com.au/hcisite3/toolkit/pdcacycl.htm#Plan-Do-Check-Act

RISK IDENTIFICATION

Inputs of Risk Identification Process:

1. Enterprise Environmental Factors - Published information, including commercial databases, academic studies, benchmarking, or other industry studies, may also be useful in identifying risks.
2. Organizational Process Assets - Information on prior projects may be available from previous project files, including actual data and lessons learned.
3. Project Scope Statement - Uncertainty in project assumptions should be evaluated as potential causes of project risk.
4. Risk Management Plan
5. Project Management Plan

Tools and Techniques used in Risk Identification:

1. Documentation Reviews
2. Information Gathering Techniques like Brainstorming,

Internal Auditing's Role in Risk Mangement

The business world is becoming increasingly complex due to new, evolving, and emerging risks. Organizations are giving risk management more consideration, but implementing an effective risk management program takes time and discipline. Internal auditors are finding they can play important roles in risk management, but there are many roles that internal audit activities are either not ready to pursue or are not proactive in pursuing. This should serve as a call for action to internal audit activities in general and chief audit executives (CAEs) in particular.

Read the full paper here: http://www.oracle.com/us/solutions/corporate-governance/ia-role-in-rm-345774.pdf

What the ISM code says about risk management

Paragraph 1.2.2.2 of the ISM Code states, "Safety management objectives of the company should....establish safeguards against al identifierd risks".

although there is no further explicit reference to this general requirement in the remainder of the code, risk assessment of one form or another is essential to compliance with most of its clauses. it is important to recognize that the company is responsible for identifying the risks associated with itsparticular ships, operations and trade. It is no longer sufficient to rely on compliance with generic statutory and class requirements, and with general industry guidance. These should now be seen as a starting point for ensuring the safe operation of the ship.

Risk Management Plan - The Risk Management Plan provides the blueprint of overseeing risk management throughout the project describing who, what, when, where, why, and how. 
The Risk Management Plan provides the following four critical inputs to Risk Identification:

• Assignment of roles and responsibilities - identifying the who of risk management by assigning the handling of specific tasks and roles to specific individuals.
• Budget provisions for risk-management activities - The approved funds available for risk-management activities. You will need to track your actual costs against these approved budget numbers.
• Schedule for risk management - The revised schedule including the time needed for risk-management activities over the duration of the project's life cycle.
• Categories of risk - The risk categories are used during Risk Identification to organize and prioritize risks as they are identified. Alternatively, the Risk Breakdown Structure (RBS) may be the source of risk categories.