21 Jan WHAT IS RISK? Identify the risk issues -Why is sa
WHAT IS RISK? Identify the risk issues -Why is sales down? Why is market share down? What is the reason behind employee turnover? Why is our new product recently introduced not doing well? What are the reasons behind all the budget variances? Are we charging the right price for products and services? Are our cost centers and revenue centers functioning according to their set objectives? Should we make investment in a new technology? Why? Why not? 1) Identify possible risks; recognize what can go wrong 2) Analyze each risk to estimate the probability that it will occur and the impact (i.e., damage) that it will do if it does occur 3) Rank the risks by probability and impact Impact may be negligible, marginal, critical, and catastrophic 4) Develop a contingency plan to manage those risks
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