TMHM 002 Risk Management Concepts & Principles PDF

TMHM 002: RISK MANAGEMENT AS APPLIED TO SAFETY, SECURITY, AND SANITATION LESSON 1: RISK MANAGEMENT CONCEPTS AND PRINCIPLES PROF. OLIVIA TABUCOL 1ST SEMESTER | A.Y. 2425 | MIDTERMS | BSHM 1-3D...

TMHM 002: RISK MANAGEMENT AS APPLIED TO SAFETY, SECURITY, AND SANITATION LESSON 1: RISK MANAGEMENT CONCEPTS AND PRINCIPLES PROF. OLIVIA TABUCOL 1ST SEMESTER | A.Y. 2425 | MIDTERMS | BSHM 1-3D HAZARD 1.1 WHAT IS RISK MANAGEMENT RISK MANAGEMENT The potential source of harm. Substances, events, or circumstances can constitute hazards when : It is the process of identifying, assessing, and their nature would allow them, even just controlling threats to an organization’s capital and theoretically, to cause damage to the following: earnings. - Health : These risks could stem from a wide variety of - Life sources including: - Property - financial uncertainty - Any interests or value - legal liabilities - strategic management errors According to workSMARK, (n.d.), a hazard is - accidents something that can cause harm while a risk is a - natural disasters chance that any hazard will cause harm to somebody. DEFINITION OF RISK 1.2 BENEFITS OF RISK MANAGEMENT RIsk is the possibility of something bad happening. “Effect of uncertainty on objectives” such as: Enables identification of threats and - Health opportunities for an agency - Well–being Improves and informs the planning process - Wealth Reduces likelihood of costly “surprises” - Property Contributes to improved resource - Environment allocation Improves efficiency and performance According to UNWTO, Risk is a situation that Improves accountability exposes someone or something to danger, harm or Encourages continual improvement loss. - Physical safety matter - Risk of property loss 1.3 RISK MANAGEMENT FRAMEWORK - Financial business risk Example: Food handling is one issue that must be adequately addressed whenever someone prepares food for the customers. The danger of food poisoning due to the contamination of food is high if the necessary precaution based on standards will not be followed. The government has provided regulations that must be complied with by any business ventures to make sure that the danger or harm is mitigated. Food sanitation permit is a mandatory requirement for business in the food industry. Annotated By: Bacod, Elmar A. PAGE 1  TMHM 002: RISK MANAGEMENT AS APPLIED TO SAFETY, SECURITY, AND SANITATION LESSON 1: RISK MANAGEMENT CONCEPTS AND PRINCIPLES PROF. OLIVIA TABUCOL 1ST SEMESTER | A.Y. 2425 | MIDTERMS | BSHM 1-3D 1.4 SEVEN KEY QUESTIONS This process should be followed when it comes to performing a risk assessment. A good risk management framework seeks to answer these basic questions: 1. Identification- Perform a brainstorming 1. What are we trying to achieve? session where all conceivable risks are 2. What events or circumstances that could itemized. affect the achievement of our objectives? 2. Planning- Plan for contingencies as part of 3. What are the consequences? the overall project plan; implement controls 4. How likely are these events? as needed. 5. What can we do to manage these 3. Derive Safeguards- Place specific outcomes? “fallbacks” into the overall project plan as 6. How will we maximize opportunities? contingencies for risks if they arise. 7. Can the organization recover if a risk 4. Monitor- Continuously monitor the project eventuates? to determine if any defined (or unexpected) risks manifest themselves. 1.5 PRINCIPLES OF RISK MANAGEMENT 1.7 CONTENT OF RISK MANAGEMENT PLAN When looking to perform an actual risk assessment, the following target areas should be part of the overall risk management procedures (defined by A statement of the risk management policy International Standards Organization). Details of the scope and objectives of risk The process should create value management in the agency It should be an integral part of the Consistent risk management language and organizational process definitions It should factor into the overall Integration with other management decision-making process practices and procedures It must explicitly address uncertainty Risk assessment criteria (consequence and It should be systematic and structured likelihood ratings) It should be transparent and all-inclusive Description of the internal and external It should be dynamic and adaptable to context in which the agency operates change List of analyzed risk It should be continuously monitored and Summary of the risk treatment plan improved upon as the project moves Outline of the risk reporting protocol forward Outline of the monitoring and review When first addressing a risk management program procedure for a project, take note of the aforementioned principles to ensure that 1.8 EMBEDDING RISK MANAGEMENT your specific assessment is matching up with the core ideals as defined by ISO. Risk management should be embedded in all the It should be based on the best available organization’s practices and processes in a way information that is relevant, effective, and efficient. The risk It should be tailored to the project management process should become part of, and It must take into account human factors not separate from, those organizational processes. In particular, risk management should be 1.6 RISK MANAGEMENT PROCESS embedded into the policy development, business, and strategic planning and review, and change management processes. Annotated By: Bacod, Elmar A. PAGE 2  TMHM 002: RISK MANAGEMENT AS APPLIED TO SAFETY, SECURITY, AND SANITATION LESSON 1: RISK MANAGEMENT CONCEPTS AND PRINCIPLES PROF. OLIVIA TABUCOL 1ST SEMESTER | A.Y. 2425 | MIDTERMS | BSHM 1-3D -End of lesson 1 Annotated By: Bacod, Elmar A. PAGE 3