Risk Management Lecture Notes

Overview

• Presented by Risk Garage
• Focus on basics of risk management and its application in daily life.
• Part One: Risk Identification.

Importance of Risk Management

• Risks exist in all activities, from simple to complex tasks.
• Example: House renovation can face risks like increased material costs or worker shortages.
• Risk management can help systematically handle potential problems.

Risk Management System

Key Steps:

1. Risk Identification
2. Risk Assessment
3. Response Planning
4. Implementation of Risk Response
5. Review and Improve

Focus of This Lecture: Risk Identification

Definition of Risk

• Risk: Future event affecting goals either negatively or positively.
  • Positive risk = Opportunity (e.g., materializing an opportunity enhances task value).

Important Terms in Risk Management

• Issue: Occurs when a risk has already impacted the activity.
• Uncertainty: Unknown due to lack of knowledge or ambiguity (e.g., weather variations).

Scenario for Risk Identification

• Scenario: Driving to a restaurant for a date.
• Goal: Arrive on time to impress.

Identifying Risks:

1. Traffic due to road maintenance → Slow journey time.
2. Low fuel level → Need to queue for refueling.
3. Flat tire → Stop to change tire, causing delay.
4. Seasonal sales → Difficulty finding parking.

Identifying Opportunities:

1. Faster car → Shorten journey time (drive within speed limit).
2. Shorter route via Google Maps → Potentially shorten journey time (quantification not possible yet).

Tips for Risk Identification

1. Brainstorming: Collaborate with someone experienced to gain different perspectives.
2. Capture Ideas: Record all ideas without criticism.
3. Exhaust List: Include all risks, even those with low probability.

Risk Register

• After identifying risks, record them for future reference (known as a risk register).

Conclusion

• Next video will focus on framing risk descriptions and creating a risk register.
• Thank you for watching.