ENTREPRISE RISK MANAGEMENT ESSENTIALS (2 days programme)
Basic knowledge of risk management and high level understanding of corporate governance.
This course will examine the way in which business and society make an assessment of, control and transfer risk. It is designed for the student with basic knowledge of risk management.
The goal of this course is to engage students in active discovery of risk management principles. Students will be prepared to function in a business environment, developing an awareness of the challenges, the tools, and the process of designing and implementing a risk management program.
This course focuses on the ways in which businesses and society assess, control, and transfer risk. This process, known as the risk management process, is becoming an increasingly important tool in the management of business. An effective and efficient corporate risk management program leads to knowledge and control of costs and an improved bottom line.
The risk management process involves identification of risks and associated potential costs, analysis of the causes of risk of financial loss, determination of various strategies to treat risk, selection of strategies appropriate to the goals and objectives of the business, implementation of the selected strategies, management and monitoring of results. Making adjustments, adapting to external and internal forces, including the company culture.
What the student will learn:
• The benefits of risk management and its relationship with corporate governance, social responsibility, sustainability and organisational prosperity
• The types of risk exposure typically faced by an organisation and the concepts of opportunity and downside risk
• External influences such as markets and regulation
• Enterprise Risk Management principles, framework and process
• The skills to effectively assess risk and select appropriate risk treatment techniques
• How risk management should be organised and its relationship with boards, audit and other business functions
• The importance of culture, communication, incentives and behaviour in an effective risk management structure
• How risk management helps organisations achieve their objectives
The first day introduces you to the concept of risk, its impact on your organisation and how risk management can help you understand, communicate and deal with risk. You will start to look at the risk management process. We will equip you with the confidence and knowledge to link risk management with disciplines such as business continuity, governance, compliance and internal audit.
Introduction to risk management
• What is risk and risk management?
• Why manage risk?
• Attributes of effective risk management
• Key risk management disciplines
The risk management process
• Communication and consultation
• Establishing the context
• Risk assessment
• Risk identification and analysis tools
The second day takes you through the rest of the risk management process. Practical examples will be used to demonstrate how to embed risk management in your organisation’s plans and activities. You will cover risk management frameworks, delegation of responsibilities and the creation of a risk-aware culture and learn how to implement a risk management structure in your own organisation.
The risk management process
•Risk profiling - consequence
•Probability matrix - risk registers
•Risk appetite and tolerance
•Risk treatment and risk transfer
•Monitoring and review
The risk management framework and embedding a risk culture
•Risk management framework
•Embedding risk management
•Being a successful risk manager
•Benefits of risk management