Risk Management
2024
Lecture 1
Kelvin Martins, MSc
1
Introduction
and Orientation
2
Topics Covered
• Overview and basic concepts;
• Risk Management theories;
• Types of risk: political, social, environmental, security, systematic,
digital, etc;
• Risk assessment: identification, prioritisation, tools and techniques;
• Risk Management strategies;
• Contingency planning.
3
The Lectures
• 12 lectures, attendance is mandatory
• Every Friday @ 12:00 GMT
• 15-20 min break
• Recording and slides will be on Moodle
✓Presentations
✓Debates
✓Videos
✓Activities
4
Assessment
Method % of final grade
Assessment 1
(Mid-semester) 50%
Assessment 2
(End of semester) 50%
5
About me
6
Project
Management
Risk Industrial Process
Management Engineering Management
Resource
Management
7
• Sample Project 1:
Satellite Design
MSc Space Science and Technology
UCD
8
• Sample Project 2:
The Design of a Deployable Antenna for EIRSAT-1
Queen’s University Belfast (QUB)
9
• Sample Project 3:
A Hydrogen Fuel Cell
DCU
10
• Sample Project 4:
Hydrogen in Ireland
DCU
11
• Sample Project 5:
Creative Engine
DCU
12
Risk Management
13
Risk
• Risk is the possibility that something unwelcome will happen –
something that usually leads to delays and financial losses;
• Everything is subject to risks, especially:
• Innovative practices;
• Long-term endeavours;
• New technologies;
• The interaction of different cultures;
• Anticipating what can go wrong and what can be done about it is
often considered one of the most important factors in business
management.
14
Risk
• Risk implies future uncertainty and a probability;
• Is risk chaotic or random?
15
Chaos vs Randomness
• Chaos has an order and pattern and is dependent on initial
conditions;
• The results can be recreated reliably given a certain input.
• Randomness has no order and does not follow any pattern;
• This is how quantum physics works.
16
Risk
• Past risks can help us prepare for the future – what has already
happened is now a fact, a factor or an impact.
17
Risk Management
Risk management is the process of identifying and assessing risks,
followed by the application of resources and strategies to minimise
or control the probability or impact of undesirable events.
• Risk management should also
examine the relationship between
risks and the cascading impact
they could have on the company’s
strategic goals.
Holistic Approach
18
Risk Management
Risk management generally comprises:
1. Identifying risks;
2. Performing qualitative and quantitative risk analysis;
3. Prioritising risks;
4. Planning risk response;
5. Monitoring risks.
19
Risk Management
Risks can be reduced by following a proactive approach
and managing risks at the initial stage
Always using good sense, of course!
20
Types of Risk
Project Systematic
Risk (External)
Scope Magnitude
Routine Unsystematic
Risk (Internal)
Political Environmental Market
Social Military
Operational Digital
Legal
21
Types of Risk: Scope
Project Risks vs Routine Risks
Is it within the project’s scope?
22
Project vs Routine Work
A project is intended to create a unique result in
a restricted environment (time, resources), while
routine work creates the repeatable result.
23
Project vs Routine Work
Routines Projects
Procedure oriented Task oriented
Focus
(repetitive) (not repetitive)
Continuous
Change Innovation
improvement (Kaizen)
Efficiency (doing Effectiveness (achieving
Element
things right) what you want)
Performance Indicators Progress Indicators
Control
(productivity) (added value)
Serial products
Outputs Unique products
(repetitive)
24
Project vs Routine Work
Is it a project or just routine?
• Purchasing raw materials?
• Selling a product?
• Building a skyscraper?
• Publishing a book?
• Servicing an industrial plant?
• Taking a trip?
• Paying suppliers?
• Organising an event?
25
Types of Risk
Project Systematic
Risk (External)
Scope Magnitude
Routine Unsystematic
Risk (Internal)
Political Environmental Market
Social Military
Operational Digital
Legal
26
Risk Outlook 2024
The Economist: 10 risk scenarios that can reshape the global economy in 2024
27
What about last year?
28
Thank you
Questions?
29
