2.2.3 Managing risk in a humanitarian response Learning objectives: At the end of this session, participants will be able to: Define risk List potential risks that managers need to consider in a humanitarian context Describe different risk management strategies

What is a risk? In your tables, share your definition of risk Two minutes

Definition of risk A potential event which is uncertain and, if occurs, could affect your ability to achieve your project objectives An event that may result in harm or injury to staff, or loss or damage to agency property or reputation

Calculating risk Risk = Likelihood x Impact Likelihood – how likely is it that the risk will occur? Certainty? Rare? Impact – how serious would the consequences be if it happened? Harmless? Catastrophic?

Calculating risk

LikelihoodImpact Unlikely=1Minor impact=1 Likely=2Considerable impact=2 Very likely=3Major impact=3 Calculating risk

Let’s calculate some risks Supplies not available for your project Violent attack on your field office Staff not on time – stuck in traffic Key staff member suffers from burn-out Emergency shelters constructed by your agency do not meet disaster resistance requirements

Recent examples here? In your groups Identify five events Rate their likelihood and impact Write each one on a post-it note 10 minutes

Risk matrix: Impact High Medium Low MediumHigh Likelihood

Risk matrix: Looking at the matrix, where would you draw the line? We all take risks, but when do they become unacceptable?

Threshold of acceptable risk Impact High Medium Low MediumHigh Likelihood

Risk mitigation What can you do to move threats to an acceptable level, i.e. to below the line or ‘threshold of acceptable risk’?

Identification Monitoring & control Managing risks Evaluation Documentation Risk management

Risk management strategies Anticipation or prevention Outsourcing Reaction and contingency planning

Risk log (page 24 workbook) Threat Likelihood 1=Low 3 = High Impact 1=Minimal 3 =Severe RiskMeasure reduce risk Revised level of risk Owner Date (To be updated)