Risk Management Process PDF

RISK MANAGEMENT RISK MANAGEMENT PROCESS WEEK 1  RISK MANAGEMENT Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including...

RISK MANAGEMENT RISK MANAGEMENT PROCESS WEEK 1  RISK MANAGEMENT Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters. Risk management is the process of making and carrying out decisions that will minimize the adverse effects of risk on an organization. RISK- a situation involving exposure to danger.  RISK MANAGEMENT PROCESS Risk Management is a process of IDENTIFY identifying, assessing, managing threats to an organization. Threats includes food safety EVALUATE ASSESS issues, poor sanitation, accidents, natural and man- made disasters, breach of security that may lead to legal MONITOR CONTROL liabilities.  Identification of potential risk that may endanger human live and property. Workplace hygiene procedure for food safety, enterprise standards and legislated RISK requirements that applies to the protection of lives and property. IDENTIFICATION. Human life does not mean only the safety of the customers but also the management, business, assets, personnel, stakeholders, visitors or even public. Any injuries or illness, or loss of property may pose a threat and liabilities.  Determine possible impacts that is likely to bring injury, sickness, loss of property, or death. It is a broader spectrum inherent to prevent, reduce, or eliminate risk related consequence. Examine the identified risk and use the information as the basis for calculating the risk level. RISK The matrix is commonly used to assist in ASSESSMENT. determination in which the severity of consequences is indicated in one axis and the likelihood of occurrence are listed on another side. For instance, strong waves are likely to or expected to occur on resorts located in the shoreline of Siargao Island or possibility of breaching of data of a hotel whose website is likely to be hack due to poor system control. RISK MATRIX  Reduce the likelihood of the risk occurring, reduce the consequence of the risk. Control risk relevant to hospitality and tourism includes: contracts that penalizes the failure delivery of service ensuring equipment is fully functional extensive training given i.e. food safety, waste management, cleaning and sanitizing equipment appropriates for the task workplace lay-out facilities safe work CONTROLLING providing PPE necessary to avoid contact to biological and chemical hazards OF RISK. proper information dissemination to high risk areas training in handling work related injuries training for disaster preparedness additional security staff or install equipment/devices to detect theft and other improper practices committed by staff or even guest Regular workplace inspections to identify situations likely to cause/facilitate loss of property or stocks.  RISK MONITORING To best get results after thorough planning, monitoring the progress and success of the plan then improve current and future management of results, outcomes and impact. Continuous assessment of programs. Continuous monitoring and control keeps the tract of the identified risk, residual risk and new risks.  RISK REASSESSMENT Risk reviews of the threats and weaknesses, capitalized on the strengths and positive outcomes Prioritization of identified risk to reduce the impact to the TOOLS AND organization RISK AUDITS TECHNIQUES Examine and document the effectiveness of the risk response planning in controlling risk and effectiveness of the risk owner FOR RISK VARIANCE AND TREND ANALYSIS MONITORING Update risk identification and analysis must be performed. It is where technical performance is measured, analysis strong and AND CONTROL weak areas that needs great concern. RESERVE ANALYSIS Using possible reserves/options and compared reserves with amount of risk remaining at the time and determines the sufficiency of the reserves. FEEDBACKING AND MEETINGS Risk management can be properly address after careful considerations on the feeding and holding regular meetings to address the weak points and threats identified.  EVALUATE Examination concerning the relevance, effectiveness, efficiency and impact of plan of activities. Determine the significance of risk and then decide to accept a specific risk or take action to prevent or reduce the impact. Risk evaluation is comparing with the pre-defined objectives. It requires a thorough investigation, discovering the flaws in the implementation allows the analyze the whole plan systematically. Risk avoidance skipping a high risk activity or decisions, not getting involve in business venture that potentially will cost expense. Risk mitigation is making less an action of reducing the severity and seriousness of a threat. Reducing the loss and lessening the impact, in the case of food establishment, the food borne illnesses and poisoning. Risk sharing and transfer involves third party or other organization like insurance company, partner tour provider, security agencies handling safety and security in a concert or convention. Risk acceptance is the last option when there is nothing you can do to prevent or mitigate a risk, only if the potential loss is less than the cost of insuring against the risk.  CASE STUDY ACTIVITY #1 1 2 3 4 5 6 In the Central Sterile After washing and Due to budget cuts The increased In theatre, staff are ACTIVITY: List the Supply Department drying the some months earlier, workloads mean finding incorrect hazards associated (CSSD) of a large instruments and the number of CSSD that the nurses are instruments on the with this scenario. metropolitan trays, the nurses staff has been unable to provide a trays. hospital, enrolled package them reduced by three. formal job induction nurses are required according to However, due to to the new to prepare and theatre increasing waiting employee. The pack theatre trays requirements. They lists for elective employee is for sterilisation and wrap the instruments surgery, the hospital assigned the job of dispatch to the of varying sizes and administrators have packing the washed hospital’s operating weights in cloth and decided to increase instruments onto the theatres. The carry them from the the number of trays using a procedure requires preparation area to operations carried checklist. the nurses to bend the high out by 15%. To help, over a large, deep temperature a nurse’s assistant sink to wash various sterilisers, where they was employed two steel instruments lift them onto racks, days before the and trays in warm ready for scheduled increase soapy water. The sterilisation. On in theatre use. tiled floors in front of completion of the the sink are often sterilisation process, wet, and slips are the nurses remove not uncommon. the trays from the steriliser and carry them past the preparation bench to load them onto trolleys for transfer to the theatre. Activity #2 Picture ANALYSIS 1. APPLY RISK MANAGEMENT PROCESS IDENTIFY EVALUATE ASSESS MONITOR CONTROL Activity #3 WHAT IS NOT ACCEPTABLE ? USE RISK MATRIX AS YOUR GUIDE