RISK MANAGEMENT

RISK IDENTIFICATION AND RISK ASSESMENT

TOP TEN RISKS (SELECTED BY THE GROUP)
RISK TYPE OF RISK RISK DRIVER
1. Theft (Inventory, Supplies, Operational Internal & External
Information)
2. Utilities Failure Operational Internal
3. Transaction Processing Errors Financial Internal
4. Inflation Financial External
5. IT System Malfunction Operational Internal
6. Lack of Manpower Operational Internal
7. Safety Violation Operational External
8. Ethics Violation Strategic Internal
9. Operation/Factory Accidents Operational Internal
10. Obselete Equipments Operational Internal
HEAT MAP
 RISK SCORING
LIKELIHOOD OF RISK(L) RISK SCORES
Very High 1.25 3.75 7.5 15 25
(5) 1. Theft (Inventory, Supplies, L(1.5)I(5)= 7.5
Information)
High 0.75 2.25 4.5 9 15 2. Utilities Failure L(1.5)I(1.5)= 2.25
(3) RISK10 RISK9 RISK3 3. Transaction Processing Errors L(3)I(3)= 9

0.375 1.125 2.25 4.5 7.5 4. Inflation L(.75)I(3)=2.25

Medium
(1.5) RISK2 RISK5 RISK1 5. IT System Malfunction L(1.5)(3)=4.5
6. Lack of Manpower L(.75)I(1.5)=
Low 0.1875 0.5625 1.125 2.25 3.75 1.125
(.75) RISK6 RISK4 RISK8
7. Safety Violation L(.25)I(5)=1.25
Very Low
0.0625 0.1875 0.375 0.75 1.25 8. Ethics Violation L(.75)I(5)=3.75
(.25) RISK7
9. Operation/Factory Accidents L(3)I(1.5)=4.5
10. Obselete Equipments L(3)I(.75)= 2.25
Very Low Low Medium High Very High
(.25) (.75) (1.5) (3) (5)

IMPACT(I
)
RISK RATING
RISK SCORES
RATING
1. Theft (Inventory, Supplies, Information) L(1.5)I(5)= 7.5
Unacceptable Unacceptable Immediate action
is required to
2. Utilities Failure L(1.5)I(1.5)=
Issue 2.25 manage the risk
3. Transaction Processing Errors L(3)I(3)= 9 Issue Action is required
Unacceptable
4. Inflation L(.75)I(3)=2.25 to manage the risk
Supplementary Issue
5. IT System Malfunction L(1.5)(3)=4.5 Supplementary Action is
Issue Issue advisable if
6. Lack of Manpower L(.75)I(1.5)=
1.125 resources are
Supplementary Issue available
7. Safety Violation L(.25)I(5)=1.25
Issue Acceptable No action required
8. Ethics Violation L(.75)I(5)=3.75
Issue
9. Operation/Factory Accidents L(3)I(1.5)=4.5
Issue
10. Obselete Equipments L(3)I(.75)= 2.25
Supplementary Issue
THANK YOU