Main Aim(s) of the Unit:
This unit introduces the risk techniques as part of the overall management process. It describes the various stages involved in the risk management process starting with identifying the individual risks in relation to the overall objectives of the business or project activity. Further stages considered include the analysis of the likelihood and potential impact of such risks on the business objectives and the planning of suitable responses including the identification of staff who will be responsible for taking appropriate actions.
Main Topics of Study:
- What is risk management?
- Why is this important?
- The overall risk process including analysis, risk identification, risk assessment, risk evaluation, risk planning and risk management.
Analysing the business
- Understanding the business or project activity.
- Understanding the primary processes and goals.
- This includes the inputs (such as business objectives, financial reports, marketing plan)
- Constraints (such as the risk management plan)
- Mechanisms (such as the analysis tools, SWOT, PEST)
- Outputs (Analysis findings)
- Examples of business processes include; Marketing & Sales, Manufacturing, Billing, Training, Facilities Management and Purchasing.
- Identifying risk events and constructing a risk register.
- PEST and SWOT analysis.
- Risk questionnaire.
- The risk register will include each risk event together with information on status, probability, impact and risk response
- Risk assessment & evaluation This stage looks at assessing the probability and likely impact of the risks identified. Decision trees. Pareto analysis. Expected Monetary Value (EMV).
- Classifying risks into ‘high’, ‘medium’ or ‘low’.
- Producing action plans based on the risk assessment and evaluation stages.
- Concept of risk appetite. Risk response strategies including; risk reduction and risk removal.
- Ensuring that appropriate risk responses are implemented. This will include:
- Reacting to early warning indicators, registering changes to risks, reviewing risks and those involved, and reporting on outcomes.
Learning Outcomes for the Unit
At the end of this Unit, students will be able to:
- Identify the main elements in an overall risk management process
- Use appropriate techniques to identify risk events
- Analyse risk in probabilistic terms for likelihood and impact
- Produce a risk register with appropriate information
- Understand the role of people in the implementation and updating of risk plans
The numbers in the boxes below show which of the above unit learning outcomes are related to particular cognitive and key skills.
|Knowledge & Understanding||1-5|
|Interactive & Group Skills||5|
|Planning and Management of Learning||4|
|Communication & Presentation||-|
|Other skills (please specify):||-|
Learning and teaching methods/strategies used to enable the achievement of learning outcomes:
Learning takes place on a number of levels through lectures, class discussion including problem review and analysis. Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class. The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.
Assessment methods which enable student to demonstrate the learning outcomes for the Unit:
3 hour examination 100%
Indicative Reading for this Unit:
Simple Tools and Techniques for Enterprise Risk Management – Robert J. Chapman (John Wiley & Sons, 2006)
Alternative Texts and Further Reading:
The Commercial Manager – T. Boyce & C. Lake (ICM)
Project Risk Management: Processes, Techniques and Insights – Chris Chapman & Stephen Ward (John Wiley & Sons)
Risk Management in Projects â€“ Martin Loosemore, et al (Taylor & Francis)
The Essentials of Risk Management â€“ M. Crouhy, D. Galai & R. Mark (McGraw-Hill)
Guideline for Teaching and Learning Time (10 hrs per credit)
50 hours Lectures / Seminars / Tutorials / Workshops
Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.
50 hours Directed learning
Advance reading and preparation / Class preparation / Background reading / Group study / Portfolio / Diary etc
100 hours Self managed learning
Working through the course text and completing assignments as required will take up the bulk of the learning time. In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.