Risk Management Process

Establishing the context (5.3)

Communication and consultation (5.2)

Monitoring and review (5.6)

Risk assessment (5.4)

Risk identification (5.4.2)

Risk analysis (5.4.3)

Risk evaluation (5.4.4)

Risk treatment (5.5)

Training on Basic Risk Management

Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Risk
• The effect of uncertainty on objectives. – ISO
31000:2018
• The effect of uncertainty on an expected
result. – PNS ISO 9001:2015
• An uncertain event or condition that, if it
occurs, has a positive or negative on a
project’s objectives. – PMBOK 5th Edition

Training on Basic Risk Management

Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Risk
 An effect is a deviation from the expected — positive and/or
negative.
 Objectives can have different aspects (such as financial, health
and safety, and environmental goals) and can apply at
different levels (such as strategic, organization-wide, project,
product and process).
 Risk is often characterized by reference to potential events
and consequences, or a combination of these.
 Risk is often expressed in terms of a combination of the
consequences of an event (including changes in
circumstances) and the associated likelihood of occurrence.
Training on Basic Risk Management
Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Uncertainty
• Uncertainty is the state, even partial, of
deficiency of information related to,
understanding or knowledge of an event, its
consequence, or likelihood.
• Uncertainty on what will happen/what
happened, what are the consequences, what
is the likelihood of the event.

Training on Basic Risk Management

DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Related Terms
Risk Source - element which alone or in combination
has the intrinsic potential to give rise to risk
Hazard – source of potential harm (can be a risk
source)
Vulnerability – intrinsic properties of something
resulting in susceptibility to a risk source that can lead
to an event with a consequence

Training on Basic Risk Management

Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Related Terms
Event - occurrence or change of a particular set of
circumstances
Consequence - outcome of an event affecting
objectives
Likelihood - chance of something happening

Training on Basic Risk Management

Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Consequence
• Outcome of an event affecting objectives
• An event can lead to a range of consequences
• Can be certain or uncertain, positive or
negative effects on objectives
• Can be expressed qualitatively or
quantitatively
• Can escalate through knock-on effects

Training on Basic Risk Management

DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Likelihood
• A chance of something happening
• Defined, measured or determined objectively
or subjectively, qualitatively or quantitatively,
or described using general terms or
mathematically
• Same broad interpretation as the term
“probability” in many languages

Training on Basic Risk Management

DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Related Terms
Risk Description – structured statement of risk usually
containing four elements: sources, events, causes and
consequences

Training on Basic Risk Management

Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Risk Identification
• Process of finding, recognizing and describing
risks
• Involves the identification of:
– Risk sources,
– Events,
– Their causes and their potential consequences
• Can involve historical data, theoretical
analysis, informed and expert opinions, and
stakeholder's needs.
Training on Basic Risk Management
Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Workshop 2A
• Review the Risk Source/Hazard Types and Sub-
Types Sheet provided.
• Identify which of the categories and sub-
categories are applicable to your
department/agency/office.
• If we are to consider positive risk sources,
what would be the main categories and sub-
categories under each of them.
Training on Basic Risk Management
Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Training on Basic Risk Management
Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018
 Workshop 2B
• Identify risks or potential events that have an
effect on your organization’s objectives
• Using the Risk Source/Hazard Types and Sub-
Types sheet, indicate the risk source type and
sub-type of your identified risks
• Indicate internal potentials or vulnerabilities that
makes your organization sensitive or susceptible
to the risk source/hazard
• State the possible root causes of the risks
identified and the scenario in which the potential
event could occur
Training on Basic Risk Management
Training-Workshop on Risk Management 21-25 May
DAP Bldg., San Miguel 2018Pasig City
Avenue,
August 06 – 10, 2018
 Training on Basic Risk Management
Training-Workshop on Risk Management DAP Bldg., San Miguel Avenue, Pasig City
August 06 – 10, 2018