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RISK MANAGEMENT

Presented by : Smrutee Sathaye MBA++ 1st year Div. B R.no.11246

To start with.
Introduction

What is a risk?
Types of risk How to manage risk? Steps to work RISK Management. Advantages of Risk Management. Few inferences drawn.

Introduction
The speed of money is faster than its ever been. It is also said that, Higher the risk, Higher the

Profits(Higher the losses).


Risk Management is the process of managing the

negative consequences of an event.

What is RISK?
RISK is the potential that a chosen action or

activity (including the choice of inaction) will lead to a loss (an undesirable outcome).
In simple language, RISK is related to the

probability of uncertain future events.


The word risk comes from ancient Italian risicare

which means to dare.

Types of RISK
Strategic Risk Business/Financial Risk Program/Project Risk Operational Risk Technological Risk

Evolution of RISK Management.


Rise of Complexity. Its study started scientifically in 15th century. Daniel Bernouilli, Abraham De Moivre, Lambert

Quetelet, Edmund Halley, Edward Lloyd.

How to manage RISK?


Identification of Risk
Quantification of Risks

Managing/ Responding Risks Monitoring & Controlling

Steps to work RISK Management


Understand your Risk Appetite. Formalise the process. Identify & categorise risks at all levels. Actively management of risks. Develop a risk culture.

Learn from success and mistakes


Ask yourself difficult questions. Use known methods & tools to support you.

Use expert advice where required.


Balance risk with reward.

Advantages of RISK Management.


Gaining much more understanding about RISKs

faced. Understanding how RISKs interact. Identifying the uncertainties. Providing inputs into investment decisions. Understanding the implications of different courses of action. Assessing the financial implications of decisions. Viewing Risks as opportunities. Providing visibility of the risks that an organisation wishes to take delibarately asa weell as those it wishes to guard against and actively avoid.

Few inferences drawn


All eggs cannot be kept in one basket.

Plan Risk beforehand with different management

tools. Managing risks requires degree of courage and action. To learn from past experiences and mistakes. To take responsibility and to find out way.

Bibliography :
Risk Management by Andrew Holmes

Introduction to Derivatives and Risk management

by Don Chance. Financial Management by Khan & Jain. Credit Risk Management by S.K.Bagchi. Internet.

THANK YOU

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