Approaches to Risk Management

Overview/Description
 Whether you are investing in stocks, deciding what to eat, hiring an assistant, or merging corporate divisions, you're making decisions based on evaluating risks and benefits. When you need to make a difficult business decision, knowing the numbers can provide a clearer picture of your upside and downside. As an executive in today's explosive business world, your ability to take the right risk can mean the difference between an organizational win or disaster. The basics of analysis and assessment are presented in this course to help you improve your analytical ability in evaluating dangers so that you can lead your company to success.

Target Audience
 CEOs, CFOs, COOs, presidents, vice presidents, managers, team leaders, executives, anyone involved in risk management and decision making

Expected Duration
2.0 hours

Lesson Objectives:

Evaluating Issues in Risk

  • recognize the importance of utilizing risk evaluations.
  • identify the five dilemmas of risk evaluation.
  • identify the key concepts of uncertainty in risk management.
  • identify the three stages of risk assessment.

    • Risk Analysis

  • recognize the value of probability, surveys, samples, and statistics in risk management.
  • utilize probability to make predictions or a decision.
  • apply surveys and samples to gather information.
  • utilize statistical concepts to make informed decisions.

    • Minimizing Financial Risk

  • understand the benefit of knowing company finances.
  • identify the role of finance within a company.
  • understand income statements, cash-flow projections, and balance sheets.
  • identify the formula to calculate the break-even point.

    • Controlling Risk Costs

  • recognize the benefits of controlling risk.
  • identify the key components of a financial simulation model.
  • identify when to use opportunity cost.
  • utilize prediction error calculations to identify the potential or actual cost of mistakes.

    • Course Number: PD0242