1. Doug Off Ojai Oil Company Golden State Storage May 02, 2012

5.  Risk consists of two things: ◦ The probability that something will go wrong ◦ The negative consequences that will occur if something does go wrong.  Risk control allows you to identify and manage potential problems that could undermine key business initiatives or projects.

6. 1. Identify threats before you start the project. 2. Assess the likelihood of the risk happening and possible impact 3. Manage the risk 4. Continue conducting regular reviews – don’t lose track of the balance sheet!

7.  Risk is less acceptable at a higher level of management - desire to not be the person responsible for failure  Moral equivalence – using a small risk as a justification for performing a larger risk ◦ Guilt or shame vs. risk ◦ Risk is happiness ◦ Jyn – the Moroccan spirit of good and bad

8. Before (August 2011)After (April 2012)