Approaches to Risk Management


Overview/Description
Target Audience
Expected Duration
Lesson Objectives
Course Number


Overview/Description
Whether you are investing in shares, deciding what to eat, recruiting an assistant, or merging business divisions, you're making decisions based on evaluating risks and benefits. When you need to make a difficult business decision, knowing the numbers can provide a clearer picture of your upside and downside. As an executive in today's explosive business world, your ability to take the right risk can mean the difference between an organisational win or disaster. The basics of analysis and assessment are presented in this course to help you improve your analytical ability in evaluating dangers so that you can lead your organisation to success.

Target Audience
Managing directors, financial directors, heads of operations, managers, team leaders, executives, anyone involved in risk management and decision making

Expected Duration (hours)
2.0

Lesson Objectives

Evaluating Issues in Risk

  • recognise the importance of using risk evaluations.
  • identify the five dilemmas of risk evaluation.
  • identify the key concepts of uncertainty in risk management.
  • identify the three stages of risk assessment.

    • Risk Analysis

  • recognise the value of probability, surveys, samples, and statistics in risk management.
  • utilise probability to make predictions or a decision.
  • apply surveys and samples to gather information.
  • utilise statistical concepts to make informed decisions.

    • Minimising Financial Risk

  • understand the benefit of knowing organisation finances.
  • identify the role of finance within an organisation.
  • understand income statements, cash-flow projections, and balance sheets.
  • identify the formula to calculate the break-even point.

    • Controlling Risk Costs

  • recognise the benefits of controlling risk.
  • identify the key components of a financial simulation model.
  • identify when to use opportunity cost.
  • utilise prediction error calculations to identify the potential or actual cost of mistakes.

    • Course Number:
    PD8242