Business risk is exposure to threatening influences that can deteriorate company's ability to meet its strategic, financial and/or operational goals thus it has to be met at both strategic and operational levels.
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Business risk management guide
1. I N F O G R A P H I C
BUSINESS RISK MANAGEMENT
Y O U R R O A D T O A S U S TA I N A B L E O U T S TA N D I N G C O M P A N Y
created by Alex Milovanovich
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2. business risk is exposure to threatening influences that can
deteriorate company's ability to meet its strategic, financial
and/or operational goals thus it has to be met at both strategic
and operational levels
definition
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2
3. BUSINESS
ENTITY
Compliance
(legal) risk
Financial risk
Strategic risk
• Trade & industry extramarket generated
• Intramarket generated
• Technology
• Project
• Regional political instability
Operational risk
Reputational
risk
types of business risk
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4. risk identification process
Begin with own strategy objectives and sucess
factors. What could prevent you reaching them?
Gather information from various sources: own
team, research, customer survey, external
experts.
Identify and analyse the sources that may
trigger problems.
Use SWOT, scenarios, „fault tree“ analysis,
„bow tie“ analysis, incident analysis and/or any
other appropriate tool.
Document each risk with symptoms, causes and
consequences.
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6. risk quantification
Quantification = threat likelyhood x ..
.. asset value under threat x ..
.. vulnerability exposure
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7. risk map
Highly unlikely Unlikely Possible Likely Almost certain
Catastrophic
Major
Moderate
Minor
Insignificant
1 4
5 6 2
3
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8. risk mitigation
Develop a high-level mitigation strategy
For every major risk identified there should be a team
responsible for preparing a formal mitigation plan
Develop mitigation plan for every major risk
counting on available resources only
Identify actions and steps
needed for implementation
Develop a contingency plan
("plan B") for any high risk.
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9. basic risk mitigation strategies
avoid
transfer
acceptretain
prevent
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10. turn risk into opportunity
encourage
risk taking
be agile
recognise
opportunities
recognise
risks that
recur
In this disruptive technological era try to be a disruptor!
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11. Business Strategy in Balkans
I N F O G R A P H I C
BUSINESS RISK MANAGEMENT
Y O U R R O A D T O A S U S T A I N A B L E O U T S T A N D I N G C O M P A N Y
Also see infographic “STRATEGY DEVELOPMENT METHODOLOGY“ at
https://www.slideshare.net/SasaMilovanovic/strategy-development-methodology
created by Alex Milovanovich
www.poslovnastrategija.rs
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