1. Effective Risk Management in Decision Making Process
March 2019

2. Return
Risk
Uncertainty

3. Plan
Management
Control

4. Risk Management Identification Control Assess Mitigate Evaluation
Prioritizing
Report

5. Impact vs. Likelihood Threat Level Medium High Critical Low High

6. Exposure to Risk

7. Inherent Risk vs. Residual Risk

8. Quantitative Risk Assessment

9. Which has the highest risk?
Event
Minor Penetration
Unauthorized Viewing of Data
Unauthorized Altering of Data
Potential Exposure
$ 1,000,000
$ 50,000,000
$ 2,000,000,000
Likelihood
80%
35% 1%
Expected Exposure
$ 800,000
$17,500,000
$ 20,000,000

10. Present in Dashboard

11. Strategies for Risk Response
ACCEPT
AVOID
TRNASFER
MITIGATE
Cost-Benefit Analysis

12. Decision Making Process
Input & Output
Historical Results
Collect Data
Profitability
Available Resources
Analyze Data
Strategy
Objectives
Take Decision
Business
What could go wrong?
Collect Data
Scenario Analysis
Sensitivity Analysis
Cost vs. Benefit
Analyze Data
Lowest Risk
Highest Return
Take Decision
Risk

13. Regulatory & Compliance
Risk categories
Cyber Security
Legal & Compliance
Operational
Financial
Reputational
Societal
IT Security
Regulatory & Compliance
Strategic & Business

14. Technology Risks Technology Risk Security Compliance Availability
Infrastructure
Technology
Risk

15. Steps in Risk Managements
Monitor Risks
Key Risks Indictors
Reporting
Treat Risks
Accept
Avoid
Transfer
Mitigate
Evaluate Risks
Impact
Prioritize
Analyze Risks
Determine Likelihood
Determine Consequences
Identify Risks
Cause
Results