Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. The strategies to manage threats (uncertainties with negative consequences) typically include transferring the threat to another party, avoiding the threat, reducing the negative effect or probability of the threat, or even accepting some or all of the potential or actual consequences of a particular threat, and the opposites for opportunities (uncertain future states with benefits). Introduction A widely used vocabulary for risk management is defined by ISO Guide 73, "Risk management. Vocabulary. Risk management also faces difficulties in allocating resources. Method Principles of risk management Risk management should: Process
Operational riskAn operational risk is defined as a risk incurred by an organisation's internal activities. Operational risk is the broad discipline focusing on the risks arising from the people, systems and processes through which a company operates. It can also include other classes of risk, such as fraud, legal risks, physical or environmental risks. A widely used definition of operational risk is the one contained in the Basel II regulations. Operational risk management differs from other types of risk, because it is not used to generate profit (e.g. credit risk is exploited by lending institutions to create profit, market risk is exploited by traders and fund managers, and insurance risk is exploited by insurers). Background Since the mid-1990s, the topics of market risk and credit risk have been the subject of much debate and research, with the result that financial institutions have made significant progress in the identification, measurement and management of both these forms of risk.
ISO 31000ISO 31000 is a family of standards relating to risk management codified by the International Organization for Standardization. The purpose of ISO 31000:2009 is to provide principles and generic guidelines on risk management. ISO 31000 seeks to provide a universally recognised paradigm for practitioners and companies employing risk management processes to replace the myriad of existing standards, methodologies and paradigms that differed between industries, subject matters and regions. Currently, the ISO 31000 family is expected to include: ISO 31000:2009 - Principles and Guidelines on ImplementationISO/IEC 31010:2009 - Risk Management - Risk Assessment TechniquesISO Guide 73:2009 - Risk Management - Vocabulary ISO also designed its ISO 21500 Guidance on Project Management standard to align with ISO 31000:2009. Introduction ISO 31000 was published as a standard on the 13th of November 2009, and provides a standard on the implementation of risk management. Scope
Part 1: Flipping The Classroom? … 12 Resources To Keep You On Your FeetWelcome to another post rich in resources. If you have come here looking for links that will guide you to videos and multimedia to use in a Flipped Classroom that is coming in a future post. Perhaps you have tried a little Flip of your own and want to learn more. If you are beginning to investigate what a Flipped Classroom is, with the thought of possibly trying some kind of Flip yourself… then this is also the right place. Many educators are beginning to become aware of the growing teaching method referred to as “Flipping The Classroom”. You see, at first this definition does make a lot of sense, and like so many “best practices” I see great value in the idea. Yes, I am a proponent of incorporating various multimedia and online learning in a blended environment. The Twelve Resources To Better Understand Flipping the Classroom Learning About The Khan Academy - You have heard about Khan and have possible even used the tutorials. Like this: Like Loading...
Operational risk managementThe term Operational Risk Management (ORM) is defined as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk. ORM is the oversight of operational risk, including the risk of loss resulting from inadequate or failed internal processes and systems; human factors; or external events. Four Principles of ORM The U.S. Accept risk when benefits outweigh the cost.Accept no unnecessary risk.Anticipate and manage risk by planning.Make risk decisions at the right level. Three Levels of ORM In Depth In depth risk management is used before a project is implemented, when there is plenty of time to plan and prepare. Deliberate Deliberate risk management is used at routine periods through the implementation of a project or process. Time Critical Time critical risk management is used during operational exercises or execution of tasks. ORM Process In Depth 1. 2.
Enterprise risk managementEnterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization's objectives (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall. (ERM) ERM can also be described as a risk-based approach to managing an enterprise, integrating concepts of internal control, the Sarbanes–Oxley Act, and strategic planning. ERM frameworks defined Casualty Actuarial Society framework Hazard risk Financial risk Operational risk
How Khan Academy Is Changing the Rules of Education | MagazineMatthew Carpenter, age 10, has completed 642 inverse trigonometry problems at KhanAcademy.org.Photo: Joe Pugliese “This,” says Matthew Carpenter, “is my favorite exercise.” I peer over his shoulder at his laptop screen to see the math problem the fifth grader is pondering. It’s an inverse trigonometric function: cos-1(1) = ? Carpenter, a serious-faced 10-year-old wearing a gray T-shirt and an impressive black digital watch, pauses for a second, fidgets, then clicks on “0 degrees.” Carpenter, who attends Santa Rita Elementary, a public school in Los Altos, California, shouldn’t be doing work anywhere near this advanced. But last November, Thordarson began using Khan Academy in her class. Initially, Thordarson thought Khan Academy would merely be a helpful supplement to her normal instruction. “I’m able to give specific, pinpointed help when needed,” she says. The result is that Thordarson’s students move at their own pace. Khan’s videos are anything but sophisticated. Not everyone agrees.
Vendor-managed inventoryVendor-managed inventory (VMI) is a family of business models in which the buyer of a product (business) provides certain information to a vendor (supply chain) supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location (usually a store). A third-party logistics provider can also be involved to make sure that the buyer has the required level of inventory by adjusting the demand and supply gaps. As a symbiotic relationship, VMI makes it less likely that a business will unintentionally become out of stock of a good and reduces inventory in the supply chain. One of the keys to making VMI work is shared risk. This is one of the successful business models used by Walmart and many other big box retailers. Consumers benefit from knowledgeable store staff who are in frequent and familiar contact with manufacturer (vendor) representatives when parts or service are required. See also
Corporate governanceThere has been renewed interest in the corporate governance practices of modern corporations, particularly in relation to accountability, since the high-profile collapses of a number of large corporations during 2001–2002, most of which involved accounting fraud. Corporate scandals of various forms have maintained public and political interest in the regulation of corporate governance. In the U.S., these include Enron Corporation and MCI Inc. Other definitions Corporate governance has also been defined as "a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby mitigating agency risks which may stem from the misdeeds of corporate officers Principles of corporate governance Corporate governance models around the world There are many different models of corporate governance around the world.