Lesson 5

1. Lesson 5 The Risk Management Process

2. Introductory case: Convenience store robbery • Convenience stores have recently become a highly vulnerable target of robbery. There were 3 attacks within one single month. According to the news, two common characteristics have been identified among all these robberies. The incidence happened mostly after mid-night when there were a few customers. Secondly, the robbers mainly targeted female cashiers. In these cases, it was quite often that the robbers just took away the money from the cash register. However, there was a case in which the robber stabbed the store keeper who died later. Apart from robberies, it is also very common to have shoplifting in those stores. • How should the convenience store design its risk management plan in response to the above?

3. Topics to be covered: The risk management process

4. The risk management process- Identify the risks 3 kinds of risks:

5. The risk management process- Identify the risks 3 common ways:

6. The risk management process- Analyse the risks Magnitude of the risk

7. The risk management process- develop and evaluate different risk management strategies • For Risk Avoidance

8. The risk management process- develop and evaluate alternative risk management strategies • Risk prevention/reduction

9. The risk management process- develop and evaluate alternative risk management strategies • For Risk assumption

10. The risk management process- develop and evaluate alternative risk management strategies • For Risk transfer - insurance

11. The risk management process- develop and evaluate alternative risk management strategies • For Risk transfer – shift the activity or financial burden

12. The risk management process - select the risk management strategies • Risk avoidance strategy is suitable for risks characterized by:

13. The risk management process - select the risk management strategies • Risk reduction strategy is suitable for risks characterized by:

14. The risk management process - select the risk management strategies • Risk transfer strategy is suitable for the risks characterized by:

15. The risk management process - select the strategies • Risk assumption strategy is suitable for the risks characterized by:

16. Implement and evaluate

17. Revisit the topics covered The risk management process