this video is presented by risk garage in this risk management series i will explain the basics of risk management and how we can apply risk management in our daily life part one risk identification whenever you want to work on something from a simple task like cycling to a cafe for a cup of coffee to a more complicated activity for example undertaking house renovation risks inherently exist and could derail your goal in the latter increase in material cost may bust your renovation budget also shortage of workers could delay the completion date have you ever felt frustrated that you cannot complete your task as it has been impacted by many problems risks can be systematically managed in the corporate world risk management system has been implemented to effectively manage risks although it may sound sophisticated and advanced individuals can use the technique to manage their personal risks in the daily life a risk management system is made up of the following steps risk identification risk assessment response planning implementation of risk response and review and improve this video will be focusing on the first step which is risk identification by the way let's have a proper definition of risk risk can be defined as future event that if it occurs will affect the goal either negatively or positively a positive risk is also known as opportunity if we materialize an opportunity it will enhance the value of your task before deep diving into risks let me provide the definition for two important terms in risk management which are issue an uncertainty if a risk already happened and is impacting the activity it should be known as an issue strictly speaking for risk management we should focus on risks not issues issues should be tackled immediately an uncertainty can be defined as an unknown due to inherent lack of knowledge or ambiguity i.e weather range of productivity let's use a scenario to elaborate on the risk identification process you plan to drive from your house to a restaurant in the city center for a date on the coming saturday evening your goal is to arrive at the venue on time in order to impress your date let me sidetrack a little bit if your car makes a lot of clunking noise when you drive or brake it could indicate that your braking system needs a thorough check this is an issue and you should visit the car workshop immediately if you use your preferred route to the restaurant the journey usually takes 40 to 55 minutes based on your experience the range of journey time is considered as uncertainty let's identify a few risks or threats that could make you late for the date risk number one as a result of road maintenance along the route the traffic will be very slow and will impact your journey time risk number two as a result of low fuel level you would need to queue for refueling which will increase your journey time risk number three as a result of a flat tire you would need to stop at the roadside and change the tire and you would be late for dinner risk number four as a result of seasonal sales in the city center you may find it difficult to get a park space and you will be late for the date nevertheless we need to provide a balanced view of our risk profile therefore you are encouraged to identify a few opportunities for enhancing your chance of achieving your goal or improve the value let's identify the opportunities opportunity number one if you drive a faster car you could shorten the journey time by five minutes of course you would have to drive within the speed limit opportunity number two if you can find a shorter route on the google map you can shorten your journey time as well however there is no way to quantify the time saving at the moment in the risk identification there are a few good tips for you to consider tip number one brainstorm the risks with someone with some past experience he or she may identify risks from different perspective tip number two capture whatever ideas from friends without criticizing them and the final tip exhaust the list of risks and include risks that have little chance to take place after identifying all the risks you should record or register them for reference in the risk management practice we call it a risk register in the next video we will talk about framing risk description and risk register thank you for watching and see you next time