Session-4-Risk-Identification-Part-1.pdfVIP

2/27/2015 1 RISK MANAGEMENT 1 SESSION 4 RISK MANAGEMENT Agenda Risk Identification Process Risk Identification and Categorization Qualitative Risk Assessment Emerging Risk Identification 2/27/2015 2 RISK MANAGEMENT 3 Risk Identification - part 1 RISK MANAGEMENT 4 Session 4 objectives
Understand the Risk identification components and role within the ERM process
Understand the keys to a successful Risk Categorization and Definition 2/27/2015 3 RISK MANAGEMENT Agenda Risk Identification Process Risk Identification and Categorization Qualitative Risk Assessment Emerging Risk Identification RISK MANAGEMENT Risk Identification Process
Risk identification is the first step in the ERM process. Its quality significantly impacts the quality of the entire ERM program
Identification is not just the start of ERM, performed only one time, but instead it is a continuous process, supporting the other phases with periodic flows of outputs
It is an evolving process, whose methodologies and categorization models needs to be updated together with the evolution of corporate strategy and external environment Risk Identification Risk Quantification Risk Decision- Making Risk Messaging 2/27/2015 4 RISK MANAGEMENT 7
Within the Value Based ERM Framework, Risk identification is composed of three main phases 1 - Risk Identification and Categorization 2 - Qualitative Risk Assessment 3 - Emerging Risk Identification 1 – Risk Identification and categorization aims at defining a list of known potential risks 2 – Primary purpose of the Qualitative Risk Assessment is to prioritize the list of potential risks and narrow them down producing the restricted list of key risks 3 – The final phase aims at monitoring the ranking of the known risks and at scanning internal and external environment for unknown risks Value Based Identification RISK MANAGEMENT 8 Value Based ERM Framework 2/27/2015 5 RISK MANAGEMENT Value Based Identification within ERM framework 1 - Risk I