Final Exam in Erm
Final Exam in Erm
1.) Describe and interpret the job describtions of a Risk Manager on the ff. industries:
b.) Banking
c.) Restaurant
ANSWER:
Job Descriptions of a Risk Manager in Various Industries:
- Conduct regular safety audits and ensure compliance with health and safety regulations.
b.) Banking
- Identify and assess risks related to credit, market, liquidity, and operational activities.
In banking, a Risk Manager deals with various financial risks that can impact the
institution’s stability. They ensure the bank adheres to regulations, manage credit and
market risks, and implement strategies to safeguard the bank’s financial health.
c.) Restaurant
- Identify potential risks related to food safety, customer service, and supply chain.
A Risk Manager in a restaurant focuses on food safety, customer service quality, and supply
chain reliability. Their role is crucial in maintaining a safe dining environment, adhering to
health regulations, and ensuring the restaurant’s operational continuity.
2.) To have the best chance of hitting project success, there must be an integrated part
of project management process. Explain in details.
ANSWER:
Integrated Project Management Process for Success
Initiation
Define the project scope, objectives, stakeholders, and initial risks. Establish clear goals
and a project charter.
Planning
Develop a comprehensive project plan that includes timelines, resource allocation, risk
management strategies, and contingency plans. Detailed planning ensures all aspects are
considered and potential issues are anticipated.
Execution
Implement the project plan by coordinating team efforts, managing resources, and
maintaining communication among stakeholders. Regular monitoring and adaptation are
crucial.
Continuously track project progress against the plan. Identify deviations, assess their
impact, and take corrective actions. Risk management is ongoing to address new risks and
changes.
Closing
Integration
All stages must be interlinked, with feedback loops and regular updates to ensure
alignment with objectives and stakeholder expectations. This holistic approach helps
manage risks, resource constraints, and changes effectively, leading to project success.
3.) Discuss and expound the role of Risk Management on the following:
a.) Entrepreneurship
b.) Organization
c.) Finance
ANSWER:
Role of Risk Management in Various Contexts
Entrepreneurship
Organization
Finance
- Identify and manage financial risks, including market, credit, and liquidity risks.
4.) Apparently, there is an economic global, slow down, what would be your
recommendations to mitigate risk?
ANSWER:
The world is experiencing an economic slowdown, with global growth projections declining
across various regions. Factors such as geopolitical tensions, supply chain disruptions,
inflationary pressures, and fluctuating commodity prices contribute to this challenging
economic environment. In response to these conditions, businesses and individuals must
adopt strategies to mitigate risks and maintain financial stability.
For businesses, diversification is a crucial tactic. By expanding product lines, entering new
markets, or diversifying supply chains, companies can reduce dependence on a single
revenue stream or supplier. This approach helps to buffer against market-specific
downturns and supply chain interruptions. Additionally, maintaining a robust liquidity
position is essential. Businesses should preserve cash reserves and ensure access to
credit lines to weather periods of reduced revenue. Streamlining operations to enhance
efficiency and reduce costs can also provide a competitive edge during economic
downturns.
For individuals, prudent financial management is key. Building an emergency fund that
covers at least six months of living expenses provides a safety net against job loss or
unexpected financial challenges. Diversifying investments across different asset classes,
such as stocks, bonds, and real estate, can also help mitigate risk. This approach reduces
the impact of market volatility on an individual’s overall portfolio.
Additionally, individuals should focus on reducing high-interest debt. Paying down credit
card balances and other high-interest loans can improve financial stability and free up
resources for savings and investment. Continuing to invest in personal development and
skills training can enhance employability and career prospects, providing a buffer against
economic uncertainty.
Governments also play a crucial role in mitigating the impacts of a global economic
slowdown. Implementing policies that stimulate economic growth, such as infrastructure
investments and tax incentives for businesses, can create jobs and boost consumer
spending. Social safety nets, including unemployment benefits and healthcare support,
help protect the most vulnerable populations.
a.) Checklists
b.) Brainstorming
c.) Expert Input
ANSWER:
Use of Formal Risk Evaluation Methods:
a.) Checklists:
Why Used?
b.) Brainstorming:
Why Used?
Why Used?
In formal risk evaluation, checklists, brainstorming, and expert input are crucial tools.
Checklists ensure systematic identification of risks by providing a structured approach,
reducing the chance of oversight. Brainstorming facilitates creative and comprehensive
risk identification by encouraging diverse perspectives and ideas. Expert input brings
specialized knowledge and experience, enhancing the accuracy and depth of the risk
assessment. Together, these methods create a robust framework for identifying and
managing risks effectively.