5 PUBH 5136 Organizational Risk Management

Free Online Textbook:

• Risk Management for Enterprises and Individuals (Saylor Academy Open Textbooks)
• OHS Risk and Decision-making (OHS Body of Knowledge, Au)

I. Potential hazard, operational and strategic risks faced by an organization:

• Potential Hazard:

  • Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
    • Please read:
      • Chapter 1 – Section 1.5 Perils and Hazards (P.37)
  • Hazard and Risk (CCOHS)
    • Provide basic knowledges on hazard, risk and their types commonly found within an organization (workplace)
  • Common Workplace Hazards (uOttawa)

• Risks

  • Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
    • Please:
      • Risk as a Consequence of Uncertainty P.13
      • Definitions of Risk P.17
      • Enterprise Risk P.31
  • Operational Risk
    • Operational Risk (Investiopedia.com)
      • What Is Operational Risk?
      • Understanding Operational Risk, and its Examples
      • Operational Risk vs. Financial Risk
  • Operational Risk Topic Gateway series No. 51 (PDF) (CIMA – Chartered Institute of Management Accountants)
    • Overview P.4
    • Risk categorization and Risk Identification P.5
    • Risk assessment and measuring P.6
    • Impact (Property, Personal, Financial Exposures) P.7
    • Managing operational risks P.8
    • Case Studies P.9
  • Strategic Risk
    • Risk management – Strategic risk (Nibusinessinfo.co.uk)
      • Strategic Risk
      • Identifying Strategic Risks
      • What is strategic risk management?
  • Strategic and Operational Risks (Association of Chartered Certified Accountants)
    • Introduction
    • Strategic risks
    • Operational risks
    • Conclusion
  • Financial Risk: The Major Kinds That Companies Face (Investopedia)
    • Market Risk
    • Credit Risk
    • Liquidity Risk
    • Operational Risk
  • Hazard Identification and Assessment (OSHA)

II. Introduction to Risk Management

• Introduction to Risk Management (First Nations Financial Management Board, YouTube Video)

• Guide – Six step to risk management (PDF) (NTWorkSafe, Au)
  • Step 1: Hazard Identification
  • Step2: Risk Identification
  • Step 3: Risk Assessment
  • Step 4: Risk Control
  • Step 5: Documenting the Process
  • Step 6: Monitoring and Reviewing

III. The Benefits of Successful Risk Management Programs to an Organization

• Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
  • Please refer to:
    • Chapter 5.1 Enterprise Risk Management within Firm Goals (P.190)
      • Maximization of Firm’s Value for Sustainability
      • How Risk Managers Can Maximize Values
    • 5.2 Risk Management and the Firm’s Financial Statement—Opportunities within the ERM (P.199)
• The Benefits of Risk Management Planning (Bellevue University)
• What is Risk Management and Why is it Important in an Organization (Youtube Video)

https://www.youtube.com/watch?v=KcCmCZoQVvE

IV. Risk Assessment and Techniques:

• Risk Assessment:

  • Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
    • Please read: Chapter 2 Risk Measurement and Metrics
  • Risk Assessment (ASIS International)
    • Managing a Risk Assessment Program
    • Establishing the Framework
    • Establishing the Program
    • Implementing the Risk Assessment Program
    • Monitoring the Risk Assessment Program
    • Review and Improvement
  • Risk Assessment (Buyandsell.gc.ca)

• Major categories of risk assessment and their treatment techniques.

  • Categories of Risk Assessment:
    • Qualitative and Quantitative:
      • Enterprise Risk Management: Tools and Techniques for Effective Implementation (PDF) (NC State University)
        • Please read: Qualitative and Quantitative Approaches to Risk Assessment (P.12)
          1. Qualitative
          2. Quantitative
  • Generic Risk Assessment:
    • Fire and Rescue Service Operational Guidance – Generic Risk Assessments Introduction (PDF) (UK Fire and Rescue Contacts)
      • Purpose of generic risk assessments (GRA) (P.5)
  • Field Level Risk Assessment
    • Field Level Risk Assessment Manager’s Handbook (PDF) (Construction Owners Association of Alberta, 1998)
      • Section 1: Making the Decision to Use Field Level Risk Assessment (P.4)
        1. What is Field Level Risk Assessment
        2. Benefits of Field Level Risk Assessment
      • Section 2 Managing Field Level Risk Assessment
      • Section 3 Overview of Field Level Risk Assessment Tools and Training
  • Dynamic Risk assessment
    • Dynamic Risk Assessment Overview (PDF) (The ACT Emergency Services Agency (ESA), Au)

• Risk Assessment Techniques

  • Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
    • Chapter 2.1 Quantification of Uncertainty via Probability Models (P.51)
    • Measurement Techniques for Frequency, Severity, and Probability Distribution Measures for Quantifying Uncertain Events (P.54)
  • Selected Overview of Risk Assessment Techniques (PDF) (University of Defence, Czech Republic)
    • Introduction
    • Principles for decisions about methods for risk assessment
    • Types of technique
    • Factors influencing selection of risk assessment techniques
    • Selected methods-techniques for risk assessment
    • Conclusions

V. Accident Causation Models

• Accident causation models

  • Models of Causation: Safety  (PDF) (Safety Institute of Australia Ltd.)
    • Please read
      • Section 3.1 Simple Sequential Linear Accident Models (P.4)
      • Section 3.2 Complex Linear Models (P.7)
      • Section 3.3 Complex Non-Linear Accident Models (P.16)
  • Safety models and accident models – What are the main factors that allow systems to operate safety? (risk-engineering.org)
    • Safety models and accident models (Lecture Slides) to be downloaded
    • Assessing risk controls using bow-ties (Lecture Slides) to be downloaded

VI. Risk Control and Treatment:

• What are the Essential Techniques of Risk Management (California State University)
  • Five basic techniques of risk management:
    • Avoidance
    • Retention
    • Spreading
    • Loss Prevention and Reduction
    • Transfer (through Insurance and Contracts, point 7 below)
• Risk Control (Buyandsell.gc.ca)
  • Loss avoidance
  • Loss prevention
  • Loss reduction
  • Contractual transfer (point 7 below)
• Strategic Risk Management: A Primer for Directors (Harvard Law School Forum on Corporate Governance)
  • The Strategic Risk Assessment Process (7 Basic Steps for Conducting a Strategic Risk Assessment)
  • Integrating Strategic Risk Management in Strategy Setting and Performance Measurement Processes
  • Final Thoughts: Moving Forward with Strategic Risk Management
• Free Risk Management Book: Guide to Effective Risk Management 3.0 (Risk Academy)
  • Introduction
  • Objective 1: Drive Risk Culture
  • Objective 2: Help Integrate Risk Management into Business
  • Objective 3: Become a Trusted Advisor
• What is Enterprise Risk Management (ERM) (NC State Poole College of Management)
  • About Traditional Risk Management Approaches – listing the risks for each area of responsibilities:
    • Sales and Customer Service
    • Production and Distribution (Property, Net Income)
    • Finance and Treasury (Property, Net Income)
    • Human Resources (Personnel)
    • IT Risks
  • Legal and Compliance (Liability)
  • Limitations of Traditional Risk Management
  • Effective Enterprise Risk Management (ERM) Should be a Valued Strategic Tool
  • Elements of an ERM Process
  • ERM Starts with What Drives Value for the Entity
  • The Focus is on All Types of Risks
  • Output of an ERM Process
  • Monitoring and Communicating Top Risks with Key Risk Indicators (KRIs)
  • Leadership of ERM
  • Conclusion
• Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
  • Please read Chapter 3 Risk Attitudes: Expected Utility Theory and Demand for Hedging
• Risk Treatment in Enterprise Risk Management (PDF) (Actuarial Standards Board (ASB))
  • Section 1. Purpose, Scope, Cross References, and Effective Date
  • Section 2. Definitions
  • Section 3. Analysis of Issues and Recommended Practices
  • Section 4. Communications and Disclosures

• Journal Articles

  Effective Loss Control Techniques for Employment Practices Liabilities: An Assessment of How EPLI Carriers Should Seek to Transform the American Workplace.

  • McCalmon, J. S. (1999). Effective Loss Control Techniques for Employment Practices Liabilities: An Assessment of How EPLI Carriers Should Seek to Transform the American Workplace. W. New Eng. L. Rev., 21, 447. https://core.ac.uk/download/pdf/267160912.pdf

   

VII. Risk financing or Insurance for Risk Management – Transfer of Risk

• Risk Finance

  • Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
    • Please read:

1. 1. 1. 1. Chapter 5.2 5.2 Risk Management and the Firm’s Financial Statement—Opportunities within the ERM
         2. Chapter 5.3 Risk Management Using the Capital Markets

• • Risk Financing (Investopedia)
  • Risk Financing (Buyandsell.gc.ca)

• Insurance for Risk Management

  • Risk Management for Enterprises and Individuals (Free Online Textbook; hyperlink in the beginning of the chapter)
    • Please read:
      • Chapter 6 The Insurance Solution and Institutions (P.230)
  • Arunajatesan, S., & Viswanathan, T. R. (2017). Risk management and the role of insurance. In Risk management and insurance: Concepts and practices of life and general insurance (2nd ed., pp. 17-31). Trinity Press. (Available in Cape Breton University Library Online)

VIII. Emerging Risks

• An introduction to emerging risks and how to identify them – IRM Charities Special Interest Group Report (PDF) (Institute of Risk Management )
  • Definitions (P.6)
  • What constitutes an emerging risk? (P.7)
  • Why should organizations tackle emerging risks? (P.9)
  • Why do organizations avoid tackling emerging risks? (P.9)
  • Who should be involved in the emerging risk management process?  (P.10)
  • Techniques for identifying emerging risks (P.11)
    • Steps and Processes
    • SWOT Analysis
    • Horizon Scanning
  • Appendix One: Example of identifying emerging risks using horizon scanning (P.14)
  • Appendix Two: Emerging risks identified by others (P.15)
• Climate change as a driver of emerging risks for food and feed safety, plant, animal health and nutritional quality (European Food Safety Authroity)
• Cambridge Risk Briefing – Emerging Corporate Risks: Are They Insurable? (Presentation Slides, PDF) (Cambridge Judge Business School)

IX. Exercises on Risk Management:

The Quantitative Risk Management Exercise Book (PDF) (Princeton University Press)

X. Other References

• Operational Risk Management (Office of the Superintendent of Financial Institutions, Ca)
  1. Purpose and Scope of the Guideline
  2. Operational Risk Management Framework
  3. Operational Risk Appetite Statement
  4. Three Lines of Defence
  5. Identification and Assessment of Operational Risk
• Guide to Integrated Risk Management (Government of Canada)
• World Health Organization Ranking of Antimicrobials According to Their Importance in Human Medicine: A Critical Step for Developing Risk Management Strategies for the Use of Antimicrobials in Food Production Animals 
• Health Emergency and Disaster Risk Management Framework (PDF) (WHO) 

• Journal Articles

  • How the enterprise risk management function influences decision-making in the organization – A field study of a large, global oil and gas company
    • Meidell, A., & Kaarbøe, K. (2017). How the enterprise risk management function influences decision-making in the organization–A field study of a large, global oil and gas company. The British Accounting Review, 49(1), 39-55. https://www.sciencedirect.com/science/article/abs/pii/S0890838916300439
  • Risk Management for Running Events’ Organization on the Example of Half Marathons in Poland
    • Łuczak, J. (2021). Risk Management for Running Events’ Organization on the Example of Half Marathons in Poland. IBIMA Business Review, 2021. https://ibimapublishing.com/articles/IBIMABR/2021/560080/560080.pdf
  • Naim, A. (2022). Role of Artificial Intelligence in Business Risk Management. American Journal of Business Management, Economics and Banking, 1, 55-66. https://www.americanjournal.org/index.php/ajbmeb/article/view/37
  • Žigienė, G., Rybakovas, E., & Alzbutas, R. (2019). Artificial intelligence based commercial risk management framework for SMEs. Sustainability, 11(16), 4501. https://doi.org/10.3390/su11164501