Risk Management Level 3

In business, some risk is always unavoidable – and, of course, taking risks often means better payout, growth, and success. The ability to assess and manage risk effectively is the key that differentiates recklessness from justified chances. Specific Objectives Chapter by Chapter Risk Management Chapter 1 – High-Level View After completing this chapter, you will be able to:

• Identify the major steps associated with a risk management process
• Identify three key characteristics of a risk event
• Interpret risk that resides in various business objectives
• Distinguish the different organizational levels that are responsible for managing risk
• Identify key elements that should be part of a risk policy
• Devise approaches for communicating risk in terms of risk thresholds

Chapter 2 – Risk Identification After completing this chapter, you will be able to:

• Formulate a process for identifying risk
• Identify typical red flags that indicate poor risk management practices
• Distinguish risk that is internal or external and risk that is known and unknown
• Identify common sources of risk within a project
• Identify risk using two formal templates – Risk Taxonomy and Risk Breakdown Structure
• Create a Risk Register for capturing your risks
• Identify the key components of a Risk Radar

Chapter 3 – Risk Analysis After completing this chapter, you will be able to:

• Identify the two key characteristics used to describe risks
• Formulate a risk score
• Identify factors that influence probabilities
• Construct a Risk Rating Matrix
• Choose different tools for risk models and how you might go about validating the model for quality control purposes
• Employ Value at Risk as it relates to a large portfolio of marketable investments
• Apply Basel II as it relates to the management of risk by banks

Chapter 4 – Risk Response and Control After completing this chapter, you will be able to

• Plan using Risk Control
• Develop risk response strategies for different types of risks
• Apply dual strategies you can take when you have both a threat and opportunity
• Devise a sequential order for developing a risk response
• Apply the Five T’s for developing risk response strategies
• Identify different types of Contingency Plans for managing risk
• Distinguish different types of insurance policies for managing risk
• Apply different contract clauses for reducing risk
• Select an appropriate business entity for reducing risk
• Identify the types of business functions which should have a Disaster Recovery Plan

Chapter 5 – Pulling it All Together After completing this chapter, you will be able to:

• Decompose the components behind Operational Risk
• Identify tools for managing operational risk
• Recognize Black Swans and assess why they are important
• Identify Eleven Principles associated with the ISO 31000 framework for risk management
• Identify eight capabilities used under the COSO framework for Enterprise Risk Management
• Identify major processes associated with the GRC framework for risk management
• Identify the types of objectives you should have for managing security risk per COBIT

Jobs in Risk Management No organization is completely immune to risk. The presence of financial, business, cyber and other risks mean that companies must invest in employees to address them. The demand is high for risk analysts, risk modellers, IT risk managers and many related positions. A search on Indeed.com resulted in over 6,000 open, full-time positions in the field of risk management with estimated salaries ranging from $65K to $130K per year. Experts are needed in the areas of risk identification, risk assessment, risk control and risk mitigation. As you can imagine, the banking and securities industries invest heavily in financial risk managers and the top companies hiring include JP Morgan Chase, Wells Fargo, Morgan Stanley, Citibank and Goldman Sachs. Explore a Career in Risk Management Earn a professional certificate in risk management online and get started on a path to a lucrative career in this in-demand field. Many of the online courses in risk management on edX are self-paced so you can enrol and start learning today.