Organizational Risk Management

ORGANIZATION LEVEL RISK MANAGEMENT

ABDULLAH ALKHADRAWY, PMP, RMP

AVERSE SEEKER

RISK ATTITUDE

BUSINESS VALUEMARKET

CONDITIONSSTRATEGIC PLAN

MARKET

CONSTRAINTS

TARGET SALES

LESSONS LEARNEDORGANIZATIONAL

PROCESS ASSETS

ENVIRONMENTAL

FACTORS

CONTRACT

TYPES

ABDULLAH ALKHADRAWY, PMP, RMP 2

The biggest risk is not taking any risk... In a world that changing really quickly, the only strategy that is guaranteed to fail is not taking risks

Mark ZuckerbergFounder & CEO, Facebook.


Prepared by BSc. Civil Engineering (V. Good HONS)

2006 Graduation Project (Project Management)

2006.(Excellent graded) Achieved PMI-PMP® April2011 Achieved PMI-RMP® April2016 Certified by Primavera Inc. ® : Advanced

user for Primavera P6 (2008). Certified by Primavera Inc. ® : Advanced

user for primavera Contract Manager 12 (2009).

Working as: Sr. Planning Engineer

Abdullah Ahmed Al-Khadrawy


Organizational risk management

• Strategic risk management is your organisation's response to these uncertainties and opportunities. It involves a clear understanding of corporate strategy, the risks in adopting it and the risks in executing it. These risks may be triggered from inside or outside your organisation.• Sharpening strategic risk management: PwC


ORGANIZATION LEVEL RISK MANAGEMENT

1)Importance of the risk management for the organizations.2)Risk Attitude.3)Risk Planning.4)Risk Methodology.5)Risk Factors.6)Implementation of Risk Management. 7)Lessons Learned.


I have learned that nothing is certain except for the need to have strong risk management, a lot of cash, the willingness to invest even when the future is unclear, and great people

Jeffrey R. ImmeltCEO, General electric


1) Importance of Risk Management• The risk management importance should be at the same level for you,

that you seek the success.• Managing the business risk with professional manner, increases the

probability of the business success, much more than the empirical common manner, while neglecting and/or forgetting the risk management raises the possibility of failure.• Organizations should detect and recognize the importance for the risk

management to the success of their business.• Spreading the risk recognition thru the organization and directing all the

force of it towards the successful achievement of its goals, is a common responsibility between the persons who are holding the leading positions in the organization.


1) Importance of Risk Management

MINOR

MAJOR-ITY

NOT AP-

PLIED

SUCCESS FAILURE

LOWER

HIGHER

EMPIRICAL APPLICATION

SUCCESS FAILURE

ALMOST FAIR

APPLIED SOMEHOW

PROFESSIONAL

SUCCESS FAILURE

MAJORITY

MINOR

PROFFESSIONAL APPLICATION

SUCCESS FAILURE

Business success probability, based on the degree of Risk Management applied.


Risk comes from not knowing what you're doing.

Warren BuffettCEO, Berkshire Hathaway

ABDULLAH ALKHADRAWY, PMP - PMBOK 5TH. 10

Risk appetitethe degree of uncertainty an entity is willing to take on, in anticipation of a reward

Risk tolerancethe degree, amount, or volume of risk that an organization or individual will withstand

Risk thresholdmeasures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.

2) R ISK ATT ITUDE


3) Risk Planning• Plan Risk Management is the process of defining how to conduct risk management

activities for the organization.

• Ensures that the degree, type, and visibility of risk management are

commensurate with both the risks and the importance of each objective to the

organization.

• Organization level risk plan, should reflect the current strategic plan of the

organization, and serve the implementation of it.


4) Risk Methodology• Each organization should have a clear view regarding the risk

management activities that should be applied to achieve its objectives.• Establishing the strategic goals for the organization, should consider

for the risk parameters, then should guide the risk management through the business processes using an active methodology.• Each organization should either has a clear risk methodology, or pay

the necessary effort and time to prepare suitable one.• The suitable risk methodology should serve the strategic goals for

the organization, then be reviewed periodically, and whenever necessary at each update for the organization policy and/or goals.


5) Risk Factors

• Considering the factors that may affect (if happens) the organization

objective with positive or negative impact.

• Risk factors, may include - but not limited to-:

Strategic plan, business volume, market conditions, business

constraints, contracts, organizations process, and environmental factors


6) Implementation of Risk Management

• Applying the strategic risk plan of the organization, considering all the items were included.

• Continuously increase the understanding, awareness, and the perception of the organization members to the importance of risk management.

• Continuously improve the process of risk management to keep it sufficient and compatible with the strategic goals of the organization.


7) Lessons Learned• The degree of recording, considering, & applying the lessons learned; can be

significantly reflected to the level of maturity at which the organization acts.

• Not necessary to fall in the mistake nor wasting the opportunity to be recorded in the record of the lesson learned in the organization, you have to learn from the significant history of others .

• Lessons learned may come from opportunities (achieved or missed), and not necessary come from mistakes or threats.

• Fall in certain mistake, or missing an opportunity more than once, reflects low degree of recognition.

ABDULLAH ALKHADRAWY, PMP - PMBOK 5TH. 16

mailto:[email protected]

https://www.linkedin.com/in/abdullah-ahmed-pmp-rmp-24aa2b23

http://www.slideshare.net/abdullahalkhadrawy

Organizational Risk Management

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