Course Hero Logo

CRM110 - Chapter 4.pdf - Agenda CHAPTERS 1 Introduction to...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 8 out of 25 pages.

Agenda| Page 71Introduction to Risk ManagementRisk Management Standards and FrameworksHazard RiskOperational, Financial, and Strategic RiskRisk Management Framework and ProcessRisk IdentificationRisk AnalysisRisk TreatmentBig Data Analytics for Managing RiskCapital Investment and Financial RiskMonitoring and Reporting on RiskCHAPTERS1234567891011
Operational RiskPeoplePeople typically includes all of the employees of an organization. It can alsoinclude an organization’s contractors, vendors, clients, and other groups thatthe organization chooses to classify in this categorySome of operational risk people create are insurable such as:Theft and dishonestyDiscrimination or harassmentErrors and omissionsSome of the operational risk people create are NOT insurance such as lostopportunities, reputation loss.
Strategies to Mitigate People RiskRecruitment: Seek candidates who best match the organization's needs andculture.Selection:Checking references and criminal backgrounds when legally permitted,help mitigate people risk.Training and development:Addresses the risks related to a given job position.For example, managers should be trained to interact appropriately with otheremployees.Performance management—Employee performance should be reviewedperiodically, and managers should provide ongoing feedback.Incentive:Encourage appropriate employee risk taking and discourageinappropriate behaviors.Succession planning—Organizations should maintain a plan for replacement ofstaff in crucial executive positions, as well as in roles that perform essentialfunctions of the organization.[DA12690- Page 4.5Operational Risk
Operational RiskProcessProcess Risktypically includes the procedures and practices organizations use to conduct theirbusiness activities,a risk often occurs when a practice departs from procedure.An organization’s procedures should representbest practices and be designed for quality andfor the safety of products and employees.Analysis of losses and near-accidents can providecontinuous feedbackto help monitor the effectiveness of procedures and redesign them whennecessary.Lets see how block chain has reduced process risk tremendously
Operational RiskSystemsSystems riskinvolves risks associated with technology and equipment.Technology risks include intentional or accidental failure, and security.Equipment failure may present hazard risk as well as risk for an organization’s continuingoperations.Image from -
Operational RiskExternal EventsAny external event that affects the organization’s operations:Natural disasterData breachSupplier disruptionsPower outagesImage from -
Operational Risk IndicatorsRisk indicators are used to track the level of operational risk.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 25 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
Jo
Tags

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture