- "Risk management is the identification, evaluation, and prioritization of risks... followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities."
The process of identifying and managing potential risks to an entity, including financial risks such as loss of revenue or unexpected expenses, and developing strategies to mitigate those risks.
Definition of Risk Management: This includes understanding the fundamental concept of risk management, its benefits, and how it’s applied in public administration.
Types of Risks: The different types of risks such as financial, operational, and strategic risks, their sources and how they can be identified.
Risk Assessment: This covers the process of evaluating and prioritizing risks based on their likelihood and potential impact.
Risk Analysis: The process of understanding the nature of risks, their effects, and the level of control that can be exerted on them.
Risk Mitigation: This covers the different strategies for reducing, transferring or avoiding risks.
Risk Monitoring and Control: The importance of ongoing surveillance of risks and devising a plan of action for mitigating such risks.
Risk Reporting: This involves communicating information about potential and actual risks, performance improvement initiatives and highlighting the status of risks.
Risk Governance: The effective management of risk across public administration entities to ensure that risks are identified, assessed, managed, and reported in a systematic way.
Regulatory Compliance: This includes understanding the regulatory framework, legal standards, and policies that impact how risks are managed.
Financial Risk Management: This encompass understanding and managing financial risks such as credit, market, liquidity and interest rate risks.
Disaster Risk Management: Understanding how public administration entities can prepare for, prevent, and respond to disasters, including natural disasters and emergencies.
Cybersecurity Risk Management: The different types of cyber-attacks faced by public administration and tools available to manage the risks.
Reputation Risk Management: Managing risks that have the potential to negatively impact the public administration's brand, image or reputation.
Environmental Risk Management: Understanding the environmental risk landscape, the threats posed to public administration due to climate change, pollution and natural resource depletion, among other things.
Ethics and Risk Management: The importance of ethical behavior and adopting ethical standards in risk management.
Fraud Detection and Prevention: Identifying, preventing and dealing with fraudulent practices that can cause financial and reputational damage to public administration.
Business Continuity Planning (BCP): Understanding the importance of BCP and how public administration can plan to ensure the continuity of their operations even in the face of disaster or emergency.
Enterprise Risk Management (ERM): Understanding ERM and how public administration can establish a framework to implement ERM practices.
Risk Culture: The importance of creating a risk-aware culture among employees and stakeholders, fostering openness, communication, and transparency about risks across levels.
Risk Assessment Tools: Mechanisms and tools available for conducting risk assessments in public administration, such as SWOT analysis, scenario planning, Monte Carlo simulation, and gap assessments.
Risk Management for Public-Private Partnerships (PPP): Understanding the unique risks faced by PPPs and how they can be mitigated.
Risk Management in Decision Making: Integrating risk management in decision making, considering potential and actual risks in policy formulation and practice.
Risk Management in International Development: Understanding risks faced by developed and developing countries, and the tools available to address these risks.
Risk Management in Healthcare: Understanding the unique risks faced by healthcare institutions, such as clinical, regulatory, and legal risks.
Risk Management in Information Technology (IT): Understanding the risks associated with IT systems and applications, including the preventive measures and techniques available for managing them.
Strategic Risk Management: This is the process of assessing and managing risks that arise due to strategic decisions or changes in the organization's business model.
Operational Risk Management: This is the process of managing risks that arise from day-to-day operations such as the risk of system failure, human error or regulatory compliance.
Financial Risk Management: This is the process of managing financial risks that arise due to changes in interest rates, foreign exchange rates, or other economic conditions.
Reputational Risk Management: This is the process of managing the risk of damage to the organization's reputation due to negative publicity, negative customer feedback, or other factors.
Compliance Risk Management: This is the process of ensuring that the organization is compliant with all relevant laws, regulations and standards.
Environmental Risk Management: This is the process of managing risks arising from environmental factors such as pollution, climate change, and natural disasters.
Legal Risk Management: This is the process of managing risks arising from legal issues such as litigation, breaches of contract, or intellectual property disputes.
Supply Chain Risk Management: This is the process of managing risks arising from disruptions in the supply chain such as supplier bankruptcy, natural disasters, or resource scarcity.
Project Risk Management: This is the process of managing risks associated with the successful completion of a project such as cost overruns, schedule delays, or scope changes.
Cybersecurity Risk Management: This is the process of managing risks arising from cybersecurity threats such as data breaches, virus attacks, and system hacks.
- "...risks (defined in ISO 31000 as the effect of uncertainty on objectives)..."
- "Risks can come from various sources including uncertainty in international markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause."
- "Negative events can be classified as risks while positive events are classified as opportunities."
- "Risk management standards have been developed by various institutions, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards."
- "Strategies to manage threats typically include avoiding the threat, reducing the negative effect or probability of the threat, transferring all or part of the threat to another party, and even retaining some or all of the potential or actual consequences of a particular threat."
- "As a professional role, a risk manager will 'oversee the organization's comprehensive insurance and risk management program, assessing and identifying risks that could impede the reputation, safety, security, or financial success of the organization'."
- "Risk Analysts support the technical side of the organization's risk management approach... analysts share their findings with their managers, who use those insights to decide among possible solutions."
- "Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety."
- "Certain risk management standards have been criticized for having no measurable improvement on risk, whereas the confidence in estimates and decisions seems to increase."
- "Opportunities are uncertain future states with benefits."
- "See also Chief Risk Officer, internal audit, and Financial risk management § Corporate finance."
- "Risk managers develop plans to minimize and/or mitigate any negative (financial) outcomes."
- "The primary goal of risk management is to minimize the probability or impact of unfortunate events or maximize the realization of opportunities."
- "Risk evaluations are conducted to assess and identify risks that could impede the reputation, safety, security, or financial success of the organization."
- "Managers use insights from risk analysts to decide among possible solutions."
- "The main components of risk management include the identification, evaluation, and prioritization of risks, followed by the application of resources to minimize, monitor, and control the probability or impact of events."
- "Negative consequences of threats can include financial, reputational, safety, security, or operational impacts."
- "ISO standards provide quality management standards to help work more efficiently and reduce product failures."
- "Negative events can be classified as risks while positive events are classified as opportunities."