TSM3501 Lecture Notes - Lecture 8: Financial Risk, Legal Risk
8 May 2018
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WEEK 8 – RISK MANAGEMENT
Risk: the chance that something will go wrong
Risk Management:
• the process of identifying risks, assessing
these risks and managing these risks
• about identifying opportunities as avoiding or
mitigating losses
• recognised as an integral part of good
management practice
• process consisting of steps which, when
undertaken in sequence, enable continual
improvement in decision-making
• Systematic method of identifying, analysing,
evaluating, treating, monitoring and
communicating risks
• To minimise losses
• Maximise opportunities
Why use risk management:
• Helps with strategic planning
• Reduces unexpected and costly surprises
• More effective and efficient allocation of
resources
• Better results from projects and programs
• Assists you to clearly define insurance needs
• Better information for decision-making
• Compliance with regulatory requirements
• Assists in preparation for auditing
• Lessening risk encourages more people to
participate in your activity
• Balancing opportunity and risk
• Assist you to obtain insurance cover
What type of risks are there?:
• Accidents
• Financial risk
• Legal risk
• Mismanagement
• Natural disasters
• Safety and security risk
• Technology-related risks
Specific event risks:
• Crowd management
• Alcohol and drugs
• Communication
• Environment
• Emergency
• Terrorism
Control of risk: Event Management team needs to control the risks by changing the likelihood, changing the
consequence, accepting the risk and/or transferring the risk to another party
Classification of risk:
Class A - this has the potential to cause death, serious injury, permanent disability or illness
Class B - this has the potential to cause illness or time off work
Class C - the resulting injury or illness will require first aid
• (1 – 3) Acceptable
• (4 – 5) Monitor
• (6 – 9) Management Control Required
• (10 – 14) Urgent Management Attention
• (15 – 25) Unacceptable
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Risk: the chance that something will go wrong. Risk management: the process of identifying risks, assessing these risks and managing these risks: about identifying opportunities as avoiding or mitigating losses recognised as an integral part of good management practice. Why use risk management: helps with strategic planning, reduces unexpected and costly surprises, more effective and efficient allocation of resources, better results from projects and programs, assists you to clearly define insurance needs, better information for decision-making. What type of risks are there: accidents, financial risk, mismanagement. Lessening risk encourages more people to participate in your activity: balancing opportunity and risk, assist you to obtain insurance cover, natural disasters, safety and security risk, technology-related risks, environment, emergency. Control of risk: event management team needs to control the risks by changing the likelihood, changing the consequence, accepting the risk and/or transferring the risk to another party. Class a - this has the potential to cause death, serious injury, permanent disability or illness.
