 This presentation looks at: › What is risk management › How to identify risks › How to implement an effective risk management policy to increase your business' chances of success and reduce the possibility of failure.

 Risk is defined as the probability of an event and its consequences.  Risk management manages these risks using: › processes, › methods › tools  Risk management focuses on: › identifying what could go wrong, › evaluating which risks should be dealt with › implementing strategies to deal with those risks.  Businesses that have identified the risks will be better prepared and have a more cost- effective way of dealing with them.

Risk management should:  Create value  Be an integral part of organizational process  Explicitly address uncertainty  Take into account human factors  Be dynamic and responsive to change

A risk management process involves:  identifying the risks surrounding your business activities  assessing the likelihood of an event occurring  understanding how to respond to these events  putting systems in place to deal with the consequences  monitoring the effectiveness of your risk management approaches and controls

 improves decision-making, planning and prioritisation  helps you allocate capital and resources more efficiently  significantly improves the probability that you will deliver your business plan on time and to budget

 Financial risks are associated with a business' financial structure and the transactions the business makes.  Involves examining your daily financial operations, especially cashflow. If a business is too dependent on a single customer and they become unable to pay, this could have serious implications.  Also to consider: › Interest Rates › Currency Markets

Operational risks are associated with a business‘ operational and administrative procedures. These include:  Recruitment  Supply chain  Transportation  Accounting Controls  IT systems  Regulations  Board Composition IT risk and data protection are increasingly important to business. If hackers break into an IT system, they could steal valuable data and even money. A secure IT system employing encryption will safeguard commercial and customer information

Strategic risks are those risks associated with operating in a particular industry. They include risks arising from:  merger and acquisition activity  changes among customers or in demand  industry changes  research and development

 Compliance risks are those associated with the need to comply with laws and regulations.  They also apply to the need to act in a manner which investors and customers expect.  For example, by ensuring health and safety legislation is adhered to.

Other risks include:  Environmental risks, including natural disasters  Employee risk management, such as maintaining sufficient staff numbers and cover, employee safety and up-to-date skills  Political and economic instability in any foreign markets you export goods to  Health and safety risks  Commercial risks, including the failure of key suppliers or customers

Risks at work within BT Likelihood of occurrence Severity of injury 7Almost certain7Fatal 6Very likely6Permanent harm 5Probable5Hospital admission 4Possible4Lost work time 3Plausible3First aid 2Unlikely2Discomfort 1Effectively impossible1No harm

The role of the health and safety representative is independent of management. Representatives are there to represent the interests and concerns of their co-workers and respond on their behalf. They provide valuable insight, skills and resources that help employers and their co-workers. The law sets out what functions representatives have. All representatives, either appointed by trade unions or elected by employees can:  represent the workforce on health and safety generally, or make representations on potential hazards and dangers;  attend training courses; and  have contact with inspectors.

The law makes it clear that they can:  represent employees generally and when you consult them about specific matters that will affect the health, safety and welfare of the employees;  represent employees when Health and Safety Inspectors from HSE or local authorities consult them;  investigate accidents, near misses, and other potential hazards and dangerous occurrences in the workplace;  investigate complaints made by an employee they represent about their health, safety or welfare in the workplace;  present the findings of investigations to you;  inspect the workplace;  with at least one other appointed representative, request in writing that you set up a health and safety committee; and  attend Health and Safety Committee meetings as a representative of your employees.