Examples of the individual kinds of risk

The first stage of the risk identification begins the developments of a firm specific risk tree with the collection of all risks affecting the company targets and. The following illustration outlines example of a risk categorization:
Technological risks (business risks)

• Knowledge deficit: Is your enterprise strongly pending from the technological change?
• Does the danger of the “obsolescence” of the knowledge exist?
• Are there new processes in production?
• Are the downtimes how high?
• Is the production process susceptible to system crashes?

etc.

Achievement-economical risks (business risks)

• Procurement side: Does a dependence exist opposite few suppliers (single sourcing)?
• Are there substitution possibilities on the procurement side?
• Do they have problems with quality fluctuations with the input factors?
• Do they have problems with quality fluctuations with the output factors?
• Is the error frequency how high? Does it come due to wrong planning/vote frequently to extensions of deadline of projects/orders?
• Do you work process orientated?
• How does the vote between the individual functions take place?
• Research and development: Is the enterprise strengthens a technological change suspended (for example IT industry)?

etc.

Financialeconomical risks (business risks)

• Are the demand losses how high?
• Are the agreed upon dates of payment kept by the customers?
• Are liquid means/collateral present to sufficient extent?
• Are Finanzierungspielräume present?
• Does their enterprise derivatives financial instruments begin?
• Does your enterprise depend strongly on varying market prices?

etc.

Corporate Governance (business risks)

• Do you have problems with the procurement of qualified personnel?
• Are the fluctuation rates how high?
• Do they have a location disadvantage?
• Do they observe motivation and integrity gaps in the enterprise?
• Is time absent/disease days how high per annum?
• Do they have a team culture in the enterprise?
• How would you characterize the style of leadership in the enterprise? (More autocratically, authoritarian, bureaucratic ones, democratic ones, formal one, cooperative, laissez-faire, Liberalisti, Patriarchali, charismatic style of leadership)
• Try the strengths and the weaknesses of the organisational culture regarding customer, coworker, innovative, quality, to specify result and achievement orientation.
• Would you regard the organisational culture of your enterprise as “autopilot” for the implicit steering of the coworkers?

etc.

Social risks (business risks)

• Was the enterprise already confronted with trade restrictions?
• Exist does the danger of a strike/a riot in the company (addresses abroad?) /Sabotage/terrorism?
• Are cases of unfaithfulness/negligent behavior well-known with you?

etc.

Natural occurences (external risks)

• Do you have an address/a manufacturing plant in an earthquake-endangered area?
• Do you have an address/a manufacturing plant in an flooding-endangered area?
• Do you have an address/a manufacturing plant in an storm-endangered/hurricane-endanger area?

etc.

Social risks (external risks)

• Do they know cases of break-down theft/robbery in your enterprise?
• Does the danger of sabotage exist?

etc.

Political risks (external risks)

• Do you have an address/a manufacturing plant in a theater of war/war-endanger area?
• Is the enterprise subject to frequent changes of the legal sets of rules and regulations?
• Does the danger of nationalizations exist?
• Does the danger of a putsch exist?

etc.

Technical risks (external risks)

• Does a increased fire risk (high fire load) exist?
• Does a increased explosion risk exist?
• Does a bottleneck factor in your production (machine etc.) exist?
• Does a increased collapse risk exist?
• Have do you increases transport damages?

etc.

Personal risks (external risks)

• How many compulsorily notifiable (BG) accidents registered you per annum?
• Are there caused deaths by accident?

etc.

Alternative risk categorization
External risks

• Natural occurences
• Political changes
• Social changes
• Shifts of the market/new markets
• Legal developments
• Economic developments
• Supervision-legal changes
• Shifts of the branch trends
• Technical changes

Operational risks

• Logistics/selling
• IT security
• Humanly ressources
• Environmental risks
• Contract risks
• Project risks
• Customer satisfaction
• Quality
• “Health and Safety”/industrial safety
• Criminal actions
• Supplier
• Price strategy
• Customer perspective (loyalty etc.)
• Production development
• Mark value
• Production risks
• run cycle management
• Financial risks
• Liquidity
• Credit rating/debtor management
• Credit risk
• Investment control and - planning
• Taxes
• Derivatives
• Kapitalumschlag
• Company pension scheme
• Financing control/- planning

etc.

Strategic risks

• Market shares
• Mergers and Acquisitions
• Joint venture
• Resource allocation
• Humanly Capital
• Capacities
• Structure and sequence organization
• Alliances
• Crisis communication and - management

The process of the systematic per-active Risk management

The operational Risk management contains the process of the systematic and current risk analysis of the enterprise and the business procedures. The goal can be attained economically optimal security and not the maximum.

First of all the risks of an enterprise must be recognized and analyzed. The provision of information is simultaneous the most difficult phase in the RM process and a key function of the RM. A systematic, process orientated approach is necessary.

During the collection of the risks help among other things inspections, interviews, organization charts, balances, check lists and damage statistics. RiskNet has for the risk analysis and - evaluation a special method develops, with which the individual risk fields and subprocesses are analyzed.

If the risks are recognized, then a quantification takes place regarding expectancy value in the next phase of the risk evaluation. The expectancy value determines itself from the multiplication of the probability of entrance with the damage extent. During the evaluation one avails oneself of various analysis methods, like for example:

• Fault tree analyzes
• Analyzes of expiration of incident
• Scenario technology
• VALUE RK Risk
• ABC analysis
• Scoring models
• Risk map
• Monitoring team
• Analyzes of sensitivity
• PML and/or MPL analyzes

If a quantification is not possible (for example with image loss), then the risk is qualitatively evaluated (existence-threatening, serious, means, small, insignificantly).

A goal of the risk identification and - evaluation (risk analysis) is the production of a risk inventory and/or a RiskMap. A risk inventory contains a listing and a classification of all risks, detailed data concerning probabilities of damage entrance as well as potential financial effects.

After the risk analysis the evaluated risks must be compared with the given safety goals (see risk politics). The phase of the risk price increase and - control aims off to positively change the risk situation of the enterprise. Risks can be avoided, by economic activities given up and/or to be changed (e.g. development of new technologies).

Risks can be limited by risk over rolling and Risikostreuung. The adhesion can be limited by general trading conditions; risks can be reduced by separating of enterprise functions (outsourcing) and leasing. Via regional, subject-related and personal dispersion a compensation of risks can take place with from each other independent risks. If production plants are spatially separated, then the total risk is reduced.

By organizational (bspw. Emergency planning) and technical (bspw. ) Can risks took someone’s measurements for fire sprinkler be decreased. In particular the operational fire protection plays here a substantial role, since fires rank among the most frequent causes of damage.

The phase of the risk price increase and - furthermore control covers the risk financing. Which risks can be externalisiert for example by insurance solutions or alternative risk transfer?

It is important that it concerns with the Risk management process an automatic control loop. The results of the operational RM flow into the goals of the strategic RM.