BASIC PRINCIPLES OF RISK MANAGEMENT
Oleh : Bayu Nurwinanto
INTRODUCTION
Destination
he
concept of risk management was introduced in the field of occupational
safety and health in the era of the 1980s after the development of the
theory of accident models of Ilci and also the rise of environmental and health issues.
The purpose of risk management is the minimization of losses and increase the chance or opportunity. When viewed in the loss to the accident theory models of Ilci, it can cut the risk management chain of events that loss, so the domino effect will not occur. Essentially risk management is the prevention of the occurrence of any loss or 'accident'.
Scope
The scope of the risk management process consists of :
- Determination of the context of the activities that will be managed risk,
- Risk identification,
- Risk analysis,
- Evaluation of risk,
- Risk control,
- Monitoring and rethinking,
- Coordination and communication,
Application
Implementation
of risk management must be an integral part of the implementation of
the management system the company / organization. This risk management process is one step that can be done to create sustainable improvement (continuous improvement). Risk management process is also often associated with the process of decision making in an organization.
Risk
management is a method that is arranged in a logical and systematic of a
series of events: the establishment of context, identification,
analysis, evaluation, control and communication of risk.
This process can be applied at all levels of activity, position, project, product or asset. Risk management can provide optimum benefits if applied early in the activity. Nonetheless risk management is often done at the stage of implementation or operational activities.
Definition
Consequence
As a result of an event expressed qualitatively or quantitatively, in the form of loss, pain, injury, disadvantage or benefit. It could also be a range of consequences that may occur and is associated with an event.
Cost
Of
an activity, both directly and indirectly, covering a wide range of
negative impacts, including money, time, labor, disruption, goodwill,
political and other losses that are not clearly stated.
Incident
An event (incident) or situation, which occurs in a particular place during a particular time interval.
Sequence Analysis of Genesis
A
technique that describes the range of possibilities and a series of
consequences that could arise from the process of an event.
Sequence Analysis of Errors
A
method for engineering system indicates that the logical combinations
of various state of the system and the causes that might contribute to
certain events (called the peak incidence).
Frequency
The size of the number of events an event expressed as the number of events an event within a certain time. Looks also like the possibilities and opportunities.
Danger (hazard)
Intrinsic factor is attached to something and has the potential to cause harm.
Monitoring / Monitoring
Testing,
Monitoring, critical observation, or recording of the progress of an
activity, action or system to identify changes that may occur.
Probability
Used as a qualitative description of
the opportunities or frequency. The possibility of
a specific event or outcome, measured by the ratio of specific events or
outcomes to the number of possible events or outcomes. The probability is denoted by a number from 0 and 1, with 0
indicating events or results may, and 1 indicates definite events or results.
Risk Followup
The level of risk remaining after risk management is done.
Risk
Chance of something happening that will have an impact on the target. It is measured by the law of cause and effect. Measured variables are usually probability, consequence and exposure.
Proceeds R isk (acceptable risk)
The decision to accept the consequences and likelihood of certain risks.
Risk analysis
A systematics which uses the information to determine how often certain events may occur and the magnitude of the consequences.
Risk assessment
The process of risk analysis and risk evaluation as a whole.
Risk aversion
Informed decision not become involved in a risk situation.
Risk control
Part
of risk management which involves the implementation of policies,
standards, procedures, physical changes to eliminate or reduce the risk
of unfavorable.
Risk Evaluation
The
process used to determine risk management by comparing the level of
risk against predetermined standards, the target level of risk and other
criteria.
Risk Identification
The process of determining what can happen, why and how.
Risk Reduction
The
use / application of management principles and proper techniques
selectively, in order to reduce the likelihood of the occurrence of an
event or its consequences, or both.
Risk transfer
Delegate
or transfer a load losses to a group / other parts through legal
channels, agreements / contracts, insurance, and others. The transfer of risk refers to the risk of physical removal and parts elsewhere
(PRA) RISK MANAGEMENT TERMS
Destination
The purpose of this section is to describe a formal process (to be done) to execute a systematic risk management program.
The
development of an organization's risk management policies and
supporting mechanisms required to provide employment patterns in
carrying out detailed risk management program in a project or
sub-organizational level.
Risk Management Policy
Executive
organization must be able to define and prove the truth of its risk
management policies, including for what purpose, and commitment. Manjemen
policy risk should be relevant to the context of the organization's
strategies and goals, objective and in accordance with the nature of
business (organization) is. Manejemen will ensure that the policy is understood, can be implemented at all levels of the organization.
Planning and Managing for Results
Management Commitment
Organizations must ensure that:
- Risk manejemen system has to be implemented, and complies with the standards
- Results
/ performance of risk management systems are reported to the management
of the organization, so that it can be used in the review (review) and as a base (reference) in decision making.
Responsibility and authority
Responsibility,
authority and interrelationships of members who can demonstrate and
differentiate work within the risk management function should be
documented in particular to the following matters :
- Preventive measures or reduction of the effects of risk.
- Control will be done in order to keep the risk factor at an acceptable limit.
- Recording of factors related to risk management activities.
- Recommended solutions corresponding predetermined manner.
- Check the validity of the implementation of existing solutions.
- Communication and consultation internally and externally.
Source
Organizations must be able to identify the competence requirements of human resources (HR) is required. It
is therefore necessary to improve the qualification of human resources
for training-training that is relevant to the job such as managerial
training, and so forth.
Implementation Program
A
number of steps need to be done so that the implementation of the risk
management system can operate effectively in an organization. An
example implementation can be found in appendix B. The steps to be
performed depends on the philosophy, culture and structure of the
organization.
Management Review
Review
of risk management systems at specific stages, must be able to
ascertain the suitability of the risk management activities that are
being carried out with the standard used and the subsequent stages.
DESCRIPTION OF RISK MANAGEMENT
General
Risk management is an integral part of the management process. Risk
management is part of the process of implementing the activities within
the organization and consists of scientific and mutlidisiplin
background, risk management is a process that runs continuously.
Key Elements
The main elements of the risk management process.
Goal setting
Establish strategies, organizational policies and risk management scope to be performed.
Risk Identifikasi
Identify what, why and how the factors that influence the risk for further analysis.
Risk analysis
Done by determining the levels of probability and consequences that will happen. Then there is the risk level is determined by multiplying the two variables (probability X consequence).
Risk Evaluation
Comparing the level of risk with the standard criteria. Once the level of risk there is to some extent made hazards management priorities. If
the risk level is set low, then the risk of entering into an acceptable
category and may only require monitoring without having to exercise
control.
Risk Control
Doing
decrease the degree of probability and consequences that exist by using
a variety of alternative methods, to the transfer of risk, and others.
Monitor and Review
Monitor and review the results of the risk management system performed as well as identifying the changes that need to be done.
Communication and consultation
Communication
and consultation with internal and external decision makers to follow
up on the results of risk management is carried out.
Risk management can be applied at any level in the organization. Risk management can be applied at a strategic level and operational level. Risk
management can also be applied to a specific project, to help the
decision making process or for risk management with specific areas.
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