Risk is inherent in any organization, and the lack of consistent management leaves a lot of room for unfavorable outcomes. To highlight the significance and benefits of developing a risk management framework, the Institute for Solidarity in Asia (ISA) conducted a Skills Lab on Risk Assessment and Management (RAM) last August 26 to 27, 2021.
Facilitated by ISA’s go-to risk management expert Mr. Michael “Mhycke” Gallego, the capacity building program, now on its second online run, was attended by 22 participants from the Office of the Presidential Adviser on the Peace Process and the Philippine Veterans Affairs Office.
Here are five risk fundamentals risk professionals want you to know:
1. Opportunity and risk come in pairs.
“Some organizations would like to refer specifically to just risk. Nagkakaroon ng negative connotation. Whenever we talk about the concept of risk, it’s either the negative impact or positive impact of that particular transaction or event.”—Mr. Gallego
2. The end goal of RAM is to reduce risk to an acceptable level.
“The end goal of risk management process is to be able to demonstrate that we are able to lower the risk we are faced with. We eliminate the risk faced by the organization…and set up this particular process so our leaders can visualize [lowering the level of risk].”—Mr. Gallego
3. Utilize the four essential elements of Risk Management
Language – Use a common language that everyone in the organization will understand.
Process – Implement common consistent process, rating systems, and response mechanisms.
Ratings – Adapt your own method of rating risks and list all of the risk factors first before you rate the risk level.
Response – Choose and adapt one response for your organization out of the 25 possibilities of risks and use it consistently.
4. Risks are evolving quickly—and so should your level of assessment.
“The current practice we have observed is that the exercise on revisiting the risk management process is performed at least on an annual basis because risk is evolving at minsan masyadong mabilis ang pagbabago nila. ”—Mr. Gallego
5. Risk can be reduced, avoided, or accepted.
“You can choose to avoid [risk] or you can develop reduce action plans, or perhaps do nothing and just accept it. You can develop, implement, or adopt a system in order to implement that risk. Depending on the risk assessment, there are responses that you can adopt and the measures for this will range.”—Mr. Gallego
The two-day program ended with a workshop where the delegates were asked to identify five of the high or moderate risks in their organization and create two action plans in response to each risk item. Mr. Gallego then gave comments for each of the participating organizations’ presentations and provided expert advice to help improve their risk response.
Ultimately, the delegates learned the greater value of conducting risk management in their respective organizations’ strategies and looked forward to more Skills Lab sessions ahead. For more Skills Lab sessions, follow us at isacenterph on social media, or visit our website at www.isacenter.org.