Risk & risk Management Dr. M. K. Muthuvelu

Risk Danger Danger Uncertainty Uncertainty Potential harm from a future event Potential harm from a future event Negative implication Negative implication Reward Reward

Example - Accident Domestic Domestic Industry Industry Domestic Domestic Road Road Industry Industry Food Food Chemical Chemical Engineering Engineering Hospital project Hospital project Day to day life Day to day life

Consequences Loss to men, machine, and material Loss to men, machine, and material Economy Economy Gross Domestic Product (GDP) Gross Domestic Product (GDP) Profitability Profitability Time loss Time loss

Risk… Is it avoidable? Yes or No Is it avoidable? Yes or No Except act of God, every other risk is avoidable Except act of God, every other risk is avoidable Cause of risk: Cause of risk: Lack of system Lack of system Lacuna in the system Lacuna in the system Persistence of risk inevitable Persistence of risk inevitable Option – manage the risk Option – manage the risk

Sequence of risk management Risk identification Risk identification Risk measurement Risk measurement Risk evaluation Risk evaluation Risk control Risk control Share Share Retain Retain Transfer Transfer Treat Treat Eliminate Eliminate Minimise Minimise

Risk Management Every year, this should be an on going process Every year, this should be an on going process Insurance cover Insurance cover Risk management in India and developed country Risk management in India and developed country Conclusion – an appeal Conclusion – an appeal

Thank you