Risk management basics: What exactly is it? 

Thanks for extracting the main questions Randy, very useful. Except that you've misunderstood a couple of points! In the answers to Q4 we also need to include responses to upside risks - Exploit, Share, Enhance, Accept. (Remember that risk includes both opportunity and threat!!) Then Q5 is really about the risk review, where we see if planned responses had the intended effect. And Q6 is about risk updates, where we look for new risks that have emerged since the last time. Thanks again!!!

Many thanks. It is really useful

You are the real MVP thank you

Dsiry farming

@SANDEEP PAKHARE Most Valuable Player

Thank you, I'm glad you enjoyed this short video. The Risk Doctor motto is "Understand deeply so that you can explain simply".

Same here.. so long hearing confusing things and this so clear

Thank you Ek, I appreciate your positive comments.

I'm really pleased to hear that, thank you for letting me know. I wish you success in your new role.

Thanks Terence, glad you found this short video useful. There are lots of others...! Enjoy!!

Thanks Maninder. But we can't just take all the risks that we face without any thought or action. My motto is "Take the right risks safely"! We should try to evaluate risks, then take appropriate action - sometimes that is to take the risk, especially if it's an opportunity with a potential big benefit. But sometimes we need to be proactive to avoid or minimise the worst threats, and chase the better opportunities.

GEI Consulting Thanks for the positive comments. I'm SO glad you didn't have time to get bored!

Thank you Maryam, I'm really encouraged that these videos are useful to you, and I wish you success in managing your risks.

Thanks a lot - I'm glad you enjoyed this short video. My motto is "Understand deeply so you can explain simply"!! Risk management really is quite simple!!

Thanks Gabriel. I'm sure your efforts to understand risk management have not been wasted. Although the core concepts can be expressed simply, there is a depth in the topic that would take a lifetime to explore. Keep going!!

You are right Bassam. The basics are simple, but applying them can be challenging. The aim of this video is to encourage people who are currently doing nothing to do the basics.But even quantitative risk analysis is not as difficult as some people fear! The use of statistics, models and metrics can also be understood using a few simple concepts. I wish you success in managing your risks effectively, whether you use the basic risk process or more detailed analysis.

Allied Insurance Managers, Inc. Thanks for this positive feedback. The Risk Doctor motto is "Understand profoundly so you can explain simply." Hopefully this video demonstrates our motto in action!

Thanks Harmanjott. In my experience, risk management is easy to understand and explain - but it is sometimes very challenging to do! I wish you success in managing your risks.

Thanks Sergio, I'm glad this short video is useful for you. Hi from England to Colombia!

Hi Gustavo, I'm glad I could help!

Thanks Hilary, I wanted this short video to cover the basics in a simple way and I hope I've succeeded.

Thanks for this positive feedback JC. I'm really glad this simple explanation made things more clear for you!

Thanks Jimmy, I'm really glad you liked this one.

+V.P. Raguram . Thanks VP, I'm glad you found it useful.

Thanks Maria, I hope your class find it useful.

+George Palyo . Thanks for the encouragement George. This 4-minute video seems to say all the essential things in a few words, and I'm glad you like it.

Thanks Deepak, I'm glad you liked this ne.

Thanks for your encouragement Krishna. Our motto is "Understand profoundly so that you can explain simply!"

Thank you for this positive and encouraging feedback Summer. i'm glad you liked this one!

+sakariye harbi . Thanks Sakariye, I appreciate your positive and encouraging response. I hope your presentation goes really well.

Hi Ptera, thanks for these questions. Take a look at the "100 Risk Questions" playlist (ru-vid.com/group/PLXcr0g-yn-gT5sYJzDiTY-MrLSmcVpTgz), and find videos #13 and #14, which are about identifying risks. #20 and #21 are about choosing the right response (avoiding isn't always the best choice!). Hope this helps.

Thank you Abdul. Risk management really isn't that hard, so everyone can do it! With best wishes for the New Year.

Thank you Thu, you are very welcome, I'm glad this was helpful.

Thanks Abdi, I'm glad it helped.

Glad you liked it

Thank you Charles, I'm glad you liked this one.

@@Risk-Doctor I got a role as a cost and Risk engineer. I wish I can get a more on this concept and how I can create a template for my department to tracking cost and risk

Thanks Siva, I'm glad it was helpful!

Thank you Kiyosaki, I agree entirely. A more complete version of this quote is the poem "To risk", see here: www.appleseeds.org/to-risk_WAW.htm

So by taking risk I'm not taking risk so I'm actually a risk taker, and if I don't take risk I'm actually taking risk but not a risk taker? Nice

@@lorenzomizushal3980. Haha! 🙂 The point is to take the right risks safely, and not to take any unnecessary risks. Sometimes not taking risk is the right thing to do, especially if the potential impact is disastrous.

Thank you Balaji, I appreciate your positive and encouraging feedback.

You are most welcome Dr David Hillson, not only content the clarity, the dressing, the care in taking videos is also very nice. After this I watched 4 of your Risk Ailments videos. Really impressive indeed!!

Thanks, that's right!

Thanks Steve, we appreciate your recommendation.

Thank you Abdulrahman. These truths and principles are timeless!! And they work!

RiskDoctorVideo absolutely true 🌹❤️

Thanks Zakir, that's very encouraging. I wish you success in managing your own risks!

+chancellorjohn1984 . Thanks for this encouraging feedback - much appreciated!

Thanks Caleb, managing risk really isn't that complicated!

Hi Omar. I'm really pleased that this short video was helpful for you, and I wish you success in your project and career.

Evil Mouse Absolutely, that's the goal! What could be easier than this?! I get frustrated when people say risk management is "too hard", when they really mean that they're forced to use an inappropriate process that overcomplicates things. Managing risk should be simple - and fun!

Thanks Jake - although I'm not working in healthcare, just a risk consultant!

@@Risk-Doctor You did so well at explaining it, you teach it better than seniors in my profession 👌🏼

You're very welcome!

Thanks Emmanuel, that's very encouraging. Now you understand it, the next challenge is to do it!!

You are welcome

Thanks Ariane, glad you liked this one. You and I share the same goal - to simplify risk management without making it simplistic, as you explain here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-GWvokoAfKAM.html!

I agree! It's a life skill. See here: risk-doctor.com/wp-content/uploads/2020/06/19-Personal-risk-management.pdf

Thanks Juhina, that's encouraging to know. I hope your webinar goes really well.

You are most welcome Brian, I'm gladthey are helpful to you to focus and shape your management of risk.

Thank you, I'm glad this short video was useful for you.

Thanks, I'm glad it was helpful!

Magued Ibrahim Thanks Magued, glad you like it. I'll consider your suggestion for a video on motivating people to take risk management seriously.

Yes I agree. Many years ago I learned an important phrase: "Slow down to speed up." It sounds strange, but the idea is that if we move too fast we end up making avoidable mistakes which we have to spend time fixing later. But if we slow down and take care, then overall we spend less time. But... Sometimes there are time constraints which must be met, which might make it hard to slow down. This is one reason why risk management is important - to stop us making avoidable mistakes by identifying and treating threats, and also to help us to work faster by finding and capturing opportunities.

Thanks Kiran, I'm really pleased you like this simple summary. I wish you well in managing your risks in 2015 - including both threats and opportunities!

That's really good to know, thanks Shemelis.

Thank you Mohamed, I appreciate your positive feedback.

Thank you Ojay. I looked at your channel @ojayherbert - I love your music!

@@Risk-Doctor thanks I appreciate ☺️

You're very welcome Elena, I'm glad you liked this one.

Thanks a lot, I'm grateful for your encouragement.

Thank you for this positive and supportive comment Clarence. You're right - the purpose of risk management is to avoid losses and maximise gains. I wish you success in managing your own risks!

Thank you for this positive feedback - I'm glad you liked it!

Thanks, glad you like it.

Thanks Steve, glad you liked this one. Even though you're apparently "RetiredAndCranky", I wish you success in managing your post-retirement risks - remember they include both threats and opportunities!! Maybe managing these risks might make you less cranky??!! ;-)

Thank you Prayogi, I appreciate your positive feedback.

Thanks for this thoughtful feedback Leon. You're right, the six steps I describe here should be implemented in a continuous cycle. I should have made that more clear, and thanks for pointing it out.

Thanks for your positive feedback. All this material is copyright protected, but please contact me directly to discuss your request (david@risk-doctor.com).

You're very welcome Rajendra.

You're welcome.

Hi, glad you liked this short video. I'm sorry but I can't offer advice on managing crypto - this is outside my area of expertise.

Thank you Alireza for these very positive and encouraging comments. I am very glad that this simple question-based approach to the risk process will be useful for you.I am very happy for you to use these questions in your presentation, as long as you quote the source. They are also described in a short Risk Doctor Briefing that you can download from www.risk-doctor.com/docs/92%20Seven%20questions%20and%20risk%20process%20(DH).pdf.

I'm glad this was helpful, thanks.

I'm glad it was useful Scott.

+YM . Thank you Yasir!!

Thank you Chirag, I'm glad you liked this one.

Hi Olga. Which course do you mean?

Glad you think so!

Thanks, that's my goal - "Understand deeply so you can explain simply."

Thank you

Thanks Wesler.

You're welcome!

Haha, thanks. I can start immediately, if the opportunity is right!

Thanks for your question. This short video discusses risk management certifications: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-6BY7edqQKtw.html

I'm not a Seinfeld fan, but I think this is a compliment, right?!

@@Risk-Doctor Yes. George was looking for a good summary of risk management, but couldn't find one.

@@nothosaur Actually I did watch that episode - very funny (ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-laKprX-HP94.html). George should have watched my 4-minute video!!! Thanks for reminding me about this one! :-D

It's hard to give specific advice without knowing more about your background and experience. You could move from claims into some risk management roles, but it probably requires additional training.

Thanks for your question Julius. The term "risk adjudication" is used in two ways. It has a specific meaning in financial risk management (specifically credit risk), as "the matching of the risk or potential for loss when lending money (i.e. issuing credit) with the organisation’s need to be profitable", or in other words, assessing whether the company’s lending decisions are appropriate to the risk involved. More generally, some people have started to use the term "risk adjudication" to describe the process of allocating risks to high/medium/low-priority groups, or "adjudicating" how big the risk is. In this sense, it is just another name for risk assessment. I hope this helps.

+M.ahmed ali Ali . Thank you Ahmed, I'm glad you liked this short explanation, and I hope it helps you to manage your risks more effectively.

Thanks Karl, I hope you find lots of useful material here.

Thnks for your question Hussein. I'm sorry but it depends on the bank. Some will recognise the FRM certification, but others require more formal qualifications or relevant experience. I wish you success in pursuing your career in risk management.

can you send me your email or your number to talk with you?

Hi Panagiotis. You don't have to be good at maths to be a good risk manager! The most important thing is to be curious, ask questions, want to know what's going on and why. Where maths is involved, you will be using tools to help you. I'd suggest that you explore opportunities in risk management - in my experience it's a fascinating career choice!

@@Risk-Doctor Thank you Sir!

@@panagiotisdl You might find this short video helpful: "What core competencies are required to become an effective risk professional?" ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-2hS75kXizkU.html

Thanks for your question Ameer. You insure for replacement value, so that if you lose the asset the insurance payout covers the cost of acquiring the same functionality.

@@Risk-Doctor thanks a lot

Hi Anthony. It's hard to advise you without knowing more about your plans or your experience. I guess you're in US, right? I'm sure you can do risk management there as a business major, depending on the university/college/school of course. I hope you get some good experience as an intern, and I wish you success in your career.

Hi Dude. No not really. Insurance is a specific technique that is used to handle certain types of risk (called insurable risks!). But risk management is much wider than insurance, and there is a different career path called "risk management". You can take degrees in risk management, or obtain professional certifications and other qualifications, some of which do not involve insurance at all.I hope this helps to clarify.

Thanks for your question Spike. Risk management focuses on managing uncertainties that would affect objectives if they occurred. RAM engineering is one technique that is used to manage a particular type of risk, but it is much more tightly focused than risk management. I hope this answers your question.

Thanks a lot. I just got my civil engineering bachelor and faced a choice between Risk Eng and RAM Eng. Can you advice which one to choose? What advantages and disadvantages, what salary diferencies and getting job probability in current?

These are two very different career paths, and it's hard to advise you without knowing your interests and skills. In general, you should aim for a career that involves doing something you enjoy, something you are good at, something that is needed, and something that people will pay for. I hope this helps you to make a decision. And of course you could always start in one direction and change later if it doesn't work out.

Hi Ali, I'm glad you liked this one.

Thanks!

Thanks for this supportive comment.

Yes, this is just a simple introduction! I hope it's helpful.

Hi Elenah. Is this video being used for a course assignment? I'm interested to know more details - what is the assignment about? David (The Risk Doctor)

@Risk-Doctor well, the assignment was to watch the video and familiarize ourselves with the topic before the teacher taught the topic in class.

Thanks Elenah. I hope this very short video was useful to you and your classmates, and that you succeed in managing your risks effectively. I wish you well in your studies.

@Risk-Doctor Yes, it was short and to the point. Thank you!

I'm not sure what KYA means, but I hope it's a good thing!

Hi Choga. Please pass my thanks to your lecturer. I hope you enjoyed your visit and found it helpful.

Hi - hop you enjoyed this video.