2.2.3 managing risk in a humanitarian response learning objectives: at the end of this session,...
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2.2.3 Managing risk in a humanitarian response
Learning objectives:At the end of this session, participants will be able to:
• Define risk
• List potential risks that managers need to consider in a humanitarian context
• Describe different risk management strategies
What is a risk?
• In your tables, share your definition of risk
• Two minutes
Definition of risk
A potential event which is uncertain and, if occurs, could affect your ability to achieve your project objectives
An event that may result in harm or injury to staff, or loss or damage to agency property or reputation
Calculating risk
Risk = Likelihood x Impact
Likelihood – how likely is it that the risk will occur? Certainty? Rare?
Impact – how serious would the consequences be if it happened? Harmless? Catastrophic?
Calculating risk
Likelihood Impact
Unlikely = 1 Minor impact =
1
Likely = 2 Considerable impact =
2
Very likely = 3 Major impact =
3
Calculating risk
Let’s calculate some risks
• Supplies not available for your project
• Violent attack on your field office
• Staff not on time – stuck in traffic
• Key staff member suffers from burn-out
• Emergency shelters constructed by your agency do not meet disaster resistance requirements
Recent examples here?
• In your groups
• Identify five events
• Rate their likelihood and impact
• Write each one on a post-it note
• 10 minutes
Risk matrix:
Risk matrix:
• Looking at the matrix, where would you draw the line?
• We all take risks, but when do they become unacceptable?
Threshold of acceptable risk
Risk mitigation
• What can you do to move threats to an acceptable level, i.e. to below the line or ‘threshold of acceptable risk’?
Identification
Monitoring & control
Managing risks
Evaluation Documentation
Risk management
Risk management strategies
• Anticipation or prevention
• Outsourcing
• Reaction and contingency planning
Risk log (page 24 workbook)Threat
Likelihood
1=Low
3 = High
Impact
1=Minimal
3 =Severe
Risk Measure reduce riskRevised level
of riskOwner
Date
(To be updated)