Risk Management

Risk

refers to the effect of uncertainty on objectives. It may have positive effects, such as opportunities, or negative effects, such as threats.

Risk Management

the coordinated activity of directing and controlling an organization regarding risks.

Risk Assessment

a systematic and collaborative process used to identify → analyze → evaluate risks.

Risk Identification

the first step in risk management. Its purpose is to find, recognize, and describe risks that may help or hinder an organization's objectives.

PNS ISO 31000:2018

The standard used in risk management

Create and protect value

Main purpose of risk management

Opportunity

positive outcome of risk

Threat

negative outcome of risk

Tangible and Intangible Sources

Physical and non-physical sources of risk.

Causes and Events

Reasons why risks happen and the events that occur.

Threats and Opportunities

Possible harmful situations and beneficial possibilities.

Vulnerabilities and Capabilities

Weaknesses and strengths that affect risk.

External and Internal Changes

Changes inside or outside an organization.

Emerging Risk Indicators

Signs that new risks may develop.

Asset Value and Nature

The importance and characteristics of assets.

Consequences and Impact

Possible results and effects of a risk.

Knowledge Limits and Information Reliability

The limitations and accuracy of available information.

Time Related Factors

How timing and duration affect risks.

Biases

Personal opinions that may affect judgment.

Assumptions

Things accepted as true without complete proof.

Beliefs of Involved Persons

Beliefs that may influence how people understand risks.

Compliance Risk

refers to failure to follow laws, rules, or standards.

Hazard or Pure Risk

refers to events that can cause injury, damage, or loss without providing a benefit.

Control Risk

refers to failures in systems, procedures, or controls.

Opportunity Risk

refers to risks connected with pursuing possible gains or benefits.

Risk analysis

estimates the likelihood of identified risks and their possible consequences.

Event

An occurrence or change in circumstances.

Consequence

The outcome of an event that affects objectives. One event may have several consequences.

Threat Assessment

The process of identifying possible harmful events in a location or facility.

Vulnerability Assessment

The process of identifying weaknesses or gaps that may increase risk.

Risk Matrix

Uses likelihood and severity to determine the level of risk.

Risk Level = Likelihood × Severity

Formula of Risk Matrix

Risk Evaluation

Compares the results of risk analysis with established risk criteria to determine whether a risk is acceptable or tolerable.

Risk Criteria

Agreed standards based on laws, policies, and values.

Evaluation Matrix

Helps rate risks according to their frequency and severity, ensuring consistent decisions.

Accept

Accept the risk when it is tolerable.

Mitigate

Reduce the likelihood or impact of the risk.

Avoid

Stop the activity that creates the risk.

Transfer or Share

Pass or share some risk responsibilities with another party.

RA 11058

the Occupational Safety and Health Law.

The DOLE Secretary

issues occupational safety and health standards.

Criminal Law

Deals with offenses against the state or society. Penalties may include fines and imprisonment.

Civil Law

involves legal disputes in which an individual or organization may sue another party to seek compensation for damages.

Vicarious Liability

Refers to an employer's responsibility for the actions of employees performed within the scope of their duties.

Personal Consequences

Injury, illness, or death.

Business Consequences

Insurance claims, property loss, and damage to the organization's reputation.

Legal Consequences

Civil or criminal action and legal liability.

Employment Consequences

Disciplinary action or loss of employment.

Tour organizer

is responsible for acquiring safety & security info before every trip/tour/event.

What is expected

What is the deviation of risk