Risk Management - L-20

RISK MANAGEMENT IN
WORKPLACE
Dr. Engr, Mohammad Iqbal
Professor, IPE Dept., SUST, Sylhet
1
Risk assessment is the process where you:
 Identify hazards and risk factors that have the potential to
cause harm (hazard identification).
 Analyze and evaluate the risk associated with that hazard (risk
analysis, and risk evaluation).
 Determine appropriate ways to eliminate the hazard, or control

the risk when the hazard cannot be eliminated (risk control).
2
How do we carryout risk assessment?
1. List the work that are your responsibility

a. People
b. Equipment 3. Estimate
c. Activity a. Likelihood
b. Outcome
2. Identify the risk
d. Hazard c. Evaluate the risk
e. Who might be harmed d. Record your
f. How? findings
e. Review your
finding 3
What is Risk Management
 Risk Management is a logical and
systematic method of
• identifying,
• analyzing,
• treating and
• monitoring the risks involved in

any activity or process.
 Risk Management is a methodology
that helps managers make best use of
their available resources .
DEPARTMENT OF INDUSTRIAL & 4
Who uses Risk Management?
o Risk Management practices are widely used in

public and the private sectors, covering a wide
range of activities or operations.
•• Finance and
Finance and
Investment
Investment
•• Insurance
Insurance
These includes :
•• Health
HealthCare
Care
•• Public
PublicInstitutions
Institutions
•• Governments
Governments
DEPARTMENT OF INDUSTRIAL &

6 Basic steps of RM
Establish the
context
Identify the
risks
Analyze the
risks
Evaluate the
risks
Treat the risks
Monitoring and
Review

The Risk Management Process
Establish
Establish the
the context
context
The strategic and organizational context in which

risk management will take place.
For example, the nature of your business, the risks
inherent in your business and your priorities.

The Risk Management process
Identify
Identify the
the risks
risks
Defining types of risk, for instance,

‘Strategic’ risks to the goals and
objectives of the organization.
• Identifying the stakeholders, (i.e.,
who is involved or affected).
• Past events, future developments.
8
Analyze
Analyze the
the risks
risks
 How likely is the risk event to happen? (Probability and

frequency?)
 What would be the impact, cost or consequences of that
event occurring? (Economic, political, social?)

Fig 4 : Risk analysis

Evaluate
Evaluate the
the risks
risks
• Rank the risks according to

management priorities, by risk
category and rated by
likelihood and possible cost or
consequence.
• Determine inherent levels of
risk.

Treat
Treat the
the risks
risks
Selection
Selection Documents
Documents Selected
Selected
Criteria
Criteria and
and Data
Data movements
movements
 Low and very low level risks can normally be

accepted, subject to on-going monitoring.
 All other risks are included in the management plan.
 The plan catalogues the risks, the level of risk, and
describes a treatment.
Monitoring
Monitoring and
and review
review
o In identifying, prioritizing and treating risks, organizations make
assumptions and decisions based on situations that are subject to
change, (e.g., the business environment, trading patterns, or
government policies).
o Risk Management policies and decisions must be regularly reviewed.
o Risk Managers must monitor activities and processes to determine the
accuracy of planning assumptions and the effectiveness of the
measures taken to treat the risk.
o Methods can include data evaluation, audit, compliance
measurement.
WHY WE SHOULD USE RISK MANAGEMENT:
 Economic benefits, by facilitating the movement of

goods, ships, aircraft and people – when rated low risk.
 Makes more effective use of existing skills and
experience – giving better results.
 Improves the quality of Customs controls –
information and accountability.
 The process helps Administrations focus on priorities
and in decisions on deploying limited resources to deal
with the highest risks.

Causes of failure of risk management
Insufficient capital
Risk ignorance
Agency risk
Incremental failure
Failure in communicating the risks to top management
Failure in monitoring and managing risks
Failure to use appropriate risk metrics or measurement system

15
MITIGATING RISK
Clarify The
Requirements
Have A Plan B
Get The
Right Team
Risk
Spread The
Test Everything Mitigation Risk
Assess Communicate
Feasibility and Listen

PREVENTING RISK FAILURE
Four major steps to preventing failures of risk are ,
Identify all relevant risks

APPLICATION
1. Allocate responsibilities, e.g., a Risk Management
Champion and a working party.
2. Evaluate how Risk Management processes can be
best applied in your national environment.
3. Survey existing skills and do a training needs
assessment.
4. Catalogue existing sources of data or information that
can help in identifying risks.
5. Communicate and consult – within Customs, with
other Agencies, the trading community and transport
industry.

REFERENCES
 Stevenson, Mcgraw Hill, 2007-Assoc. prof. Sami

Fethi , EMU .
 https://en.m.wikipidea.org
 https://www.yourarticlelibrary.com
 https://www.engineering.com
 https://www2.bc.edu
 https://www.investopidea.com

 A common definition of risk is an uncertain event that if
it occurs, can have a positive or negative effect on a
project’s goals. The potential for a risk to have a positive
or negative effect is an important concept. Uncertainty
is at the heart of risk.
 We may be unsure if an event is likely to occur or not.
Also, we may be uncertain what its consequences would
be if it did occur.
 Likelihood – the probability of an event occurring, and
consequence – the impact or outcome of an event, are
the two components that characterize the magnitude of
the risk. 20
Questions:
 What is risk Management?
 Who uses risk management?
 What are the basic steps of risk management? Discuss them?
 Explain risk Management Process.
 Using diagram show the evaluation steps of Risk.
 Discuss risk analysis method with a diagram.
 Why should we use risk management in industries?
 What are the causes of failure of risk management?
 Using figure show how risk can be mitigated?
 What are the Four major steps to preventing failures of risk? Discuss them.
21
THANKS FOR
JOINING
WITH US

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RISK MANAGEMENT IN

 Determine appropriate ways to eliminate the hazard, or control

1. List the work that are your responsibility

• monitoring the risks involved in

o Risk Management practices are widely used in

DEPARTMENT OF INDUSTRIAL &

Treat the risks

DEPARTMENT OF INDUSTRIAL & 6

The strategic and organizational context in which

DEPARTMENT OF INDUSTRIAL & 7

Defining types of risk, for instance,

 How likely is the risk event to happen? (Probability and

DEPARTMENT OF INDUSTRIAL & 9

DEPARTMENT OF INDUSTRIAL & 10

• Rank the risks according to

DEPARTMENT OF INDUSTRIAL & 11

 Low and very low level risks can normally be

 Economic benefits, by facilitating the movement of

DEPARTMENT OF INDUSTRIAL & 14

Failure in communicating the risks to top management

Failure in monitoring and managing risks

Failure to use appropriate risk metrics or measurement system

DEPARTMENT OF INDUSTRIAL & 16

Four major steps to preventing failures of risk are ,

Identify all relevant risks

DEPARTMENT OF INDUSTRIAL & 17

DEPARTMENT OF INDUSTRIAL & 18

 Stevenson, Mcgraw Hill, 2007-Assoc. prof. Sami

DEPARTMENT OF INDUSTRIAL & 19

DEPARTMENT OF INDUSTRIAL & 22

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