The 11 principles of risk management are:
1. Be Proactive: Understand and anticipate risks, act before they happen, and be prepared.
2. Identify Risks: Identify risks through threat and hazard analysis, monitoring, and reviews.
3. Analyze Risks: Assess both the likelihood and impact of each risk.
4. Treat Risks: Implement cost-effective controls to mitigate or eliminate risks.
5. Communicate & Consult: Keep stakeholders informed of risks and obtain their feedback.
6. Monitor & Review: Track risks, review changes in the internal/external environment, and adjust as needed.
7. Consider Culture: Integrate risk management into the organizational culture and ensure it’s part of decision-making processes.
8. Adhere to Standards: Use applicable international standards, best practices, and industry standards.
9. Align with Strategy: Ensure risk management aligns with strategic objectives and operational goals.
10. Document Findings: Document risk evaluations and risk-based decisions.
11. Continually Improve: Continuously strive to improve risk management and associated processes.
What are the top 10 risks overall?
Overall, there are many potential risks any business can face, so the top 10 will be dependent on the particular industry or venture. Common risks can include a weakened economy that may cause a reduction in customers and revenues, lack of competitive advantages, difficultly obtaining financing, increases in regulations and taxes, increasing prices for key resources, damage to business reputation, unexpected competition, unanticipated technological changes, cybersecurity threats, and data loss/breaches.
Additionally, businesses may face more specific risks depending on their industry, such as pandemics and other health-related risks in the healthcare industry, political risks in any business dealing with foreign entities, or extreme weather risks in sectors reliant upon certain local weather conditions.
By taking proactive steps to identify, monitor, and analyze the risks your business may face, you can better manage and mitigate those risks.
What are the eight 8 TQM principles identify each?
The eight basic principles of Total Quality Management (TQM) are:
1. Customer Focus: The customer is the core of all business operations. Companies should strive to understand and meet customer expectations with consistently high quality products and services.
2. Continuous Improvement: The goal of TQM is to continually improve processes, products, and services over time. This includes changing the way that work is done, eliminating tasks or steps that are not value-added, and improvement of customer satisfaction.
3. Employee Involvement: TQM requires employees to be actively involved in making improvements in the workplace and to take ownership of their tasks. This can lead to a better understanding of how processes work and how they can be improved.
4. Quality at the Source: Defects should be identified and corrected at the source whenever possible. This prevents problems from getting passed down the production chain, resulting in a higher level of quality.
5. System Thinking: TQM requires a holistic view of the entire organization and how everything works together. This encourages cross-functional collaboration and the sharing of ideas among departments.
6. Process Focus: Processes are the specific activities related to the delivery of a product or service. TQM encourages companies to look at their overall processes from beginning to end and to continually seek to optimize them.
7. Leadership: Effective leadership is essential in achieving quality improvement. Leaders need to define quality targets, set up systems and processes to measure progress and improvement, support employees and foster a culture of continuous improvement.
8. Communication: Open and effective communication is required for successful TQM implementation. The organization needs to ensure that everyone is on the same page and that everyone is able to provide their input and feedback.
What is the eight principle?
The Eight Principle is a set of values and ethics that originated in Japanese Buddhism. It is the basis for many modern ethical systems and serves as a model for personal and organizational behavior.
The Eight Principle is comprised of four pairings of core concepts, which are:
1. The Precepts of Wisdom & Compassion
2. Respect & Humility
3. Empathy & Acceptance
4. Clarity & Focus.
This principle encourages us to cultivate a deeper understanding of our actions and their consequences. It aims to foster compassion and empathy, promote respect and humility, and increase clarity of thought and focus.
As such, it is a valuable framework for engaging with both internal and external ethical issues. Additionally, the Eight Principle serves as a reminder of the importance of personal responsibility and integrity by privileging self-awareness, understanding, and self-control.
What are 3 types of risk controls?
There are three main types of risk control measures that can be used to reduce the risks associated with a different activity. These are generally categorized as preventative, detective and corrective controls.
1. Preventative Controls: Preventative control measures focus on preventing the risks associated with a particular activity from occurring. Some common preventative techniques include risk identification, risk assessment and risk evaluation.
Through the identification of possible threats, a risk assessment can be performed to determine the potential level of harm and the controls necessary to prevent it.
2. Detective Controls: Detective controls are designed to identify and monitor any risk that has already occurred. These types of controls are typically used after preventative controls have failed. Some common examples of detective controls include audits, inspections and regular monitoring.
3. Corrective Controls: Corrective controls are measures that focus on mitigating any risk that has already occurred. Examples of corrective controls include the implementation of training, the development of policies and procedures, and the implementation of corrective action.
Corrective controls are used to both contain and reduce the impact of a risk by repairing damage already done, as well as avoiding further loss.
What are the 5 elements to be considered in a risk assessment?
The five elements that should be considered in a risk assessment are:
1. Risk Identification: Identifying risks and hazards associated with a particular situation or project that involve stakeholders and/or the environment.
2. Risk Analysis: Analyzing the likelihood and impact of potential risks. This might involve conducting cost-benefit analyses and creating mitigation plans.
3. Risk Evaluation: Evaluating the risk to the organization by considering items such as the worst-case scenario, the severity of the risk, the operator’s ability to control the risk, and the residual risk.
4. Risk Treatment: Developing a plan of action to manage the risk. This might involve creating preventive measures, continuous monitoring and reviews, or plans to reduce/eliminate the risk.
5. Risk Monitoring and Review: Establishing systems and processes to review and update the risk assessment as needed. This might include identifying new risks, assessing changes in existing risks, or eliminating risks that have been addressed.