2. Risk Management

3. Business Club What is a Risk?

4. Business Club What is a Risk Management?

5. Business Club In ideal risk management, a prioritization process is followed whereby the risks with the greatest loss and the greatest probability of occurringare handled first, and risks with lower probability of occurrence and lower loss are handled in descending order. In practice the process can be very difficult, and balancing between risks with a high probability of occurrence but lower loss versus a risk with high loss but lower probability of occurrence can often be mishandled.

6. Business Club Where is the risk? What methods are used for ranking risk? 1 - identify, characterize, and assess threats 2 - assess the vulnerability of specific threats 3 - determine the risk (i.e. the expected consequences of specific types of attacks on specific assets) 4 - identify ways to reduce those risks 5 - prioritize risk reduction measures based on a strategy

8. be an integral part of organizational processes

9. be part of decision making

10. explicitly address uncertainty

11. be systematic and structured

12. be based on the best available information

13. be tailored

14. take into account human factors

15. be transparent and inclusive

16. be dynamic and responsive to change

18. Discussion Questions: What is the biggest risk you have taking in business? Your personal life? How did you evaluate this risk? If giving the opportunity, what large risks would you be willing to take? What has prevented you from taking risks in the past? What might prevent you from taking risks in the future? Does your company use Risk Management in it’s decision making process? How? What risks are in your industry? What risks do your company face? What risks do you face as an employee? Business Club