e n t
a n a gem
RiskM
#GetToKnowYourFACI
Mario Paz
as
c ia l A d v is o r for Americ
GFB Finan aiesec.net
mario.paz@
183
+51 987 741
SUMMARY
1 What is risk?
2 Types of risks in AIESEC.
3 What is Risk Management?
4 Risk Matrix.
5 Risk Assessment Tool.
What is risk?
What happens in We are a global
the world concerns organization…
us… That means we operate in a
global scope,
therefore everything that
happens around us can
greatly influence our daily
activities.
What happens in
the world concerns That also means…
us… That the interaction
between our
environment and our
operations can often
unexpected
generate
outcomes.
What happens in
the world concerns Therebefore…
us…
When we talk about
operating in a global
scope, we also talk about
operating with risk.
What does risk
Risk mean for you?
Effect of uncertainty
over objectives.
- ISO 31000:2009
Types of Risks
Types of Risks
Types of Risks
❑ Responsible: MCVP OD/PD.
SAFETY and ❑ Point of attention: Membership, EPs.
HEALTH ❑ Health and insecurity problems at the
location where the Entity operates.
❑ Differentiation of ongoing risks that are
known and can be prevented.
❑ Going risks that arise in the short term and
are not preventable.
Types of Risks
❑ Responsible: MCVP F&L / MCP.
LEGAL
❑ Point of attention: Legal Management,
Org. Processes
❑ Problems due to non-compliance with
processes within the legal framework.
❑ Management Team as legal responsible
and body of decision making in MC.
Types of Risks
FINANCIAL ❑ Responsible: MCVP F&L.
❑ Point of attention: Financial
Management.
❑ Impact on financial results of the entities.
❑ Management Team as financial
responsible and body of decision making
in MC.
Types of Risks
REPUTATIONAL ❑ Responsible: MCVP PR.
❑ Point of attention: Public Relations
Management.
❑ Positioning of the brand, external
perception.
❑ Fame and reputation of the organization
as intangible values.
Types of Risks
FUTURE ❑ Responsible: MCVP OD.
OPERATIONS ❑ Point of attention: Local Entities,
Expansion Entities.
❑ Expansion of AIESEC in new territories.
❑ Organizational Development.
❑ Healthy growth.
Risk Management
What is Risk Management?
"Risk management is the art of using lessons from the past
to mitigate misfortune and exploit future opportunities, that
is, the art of avoiding the stupid mistakes of yesterday,
recognizing that nature can always create new ways for
things to come out wrong".
- Thomas S. Coleman
Risk Management Process
Establish Context
Monitor and Review
Communicate and
Identify Risks
Consult
Analyse Risks
Evaluate Risks
Treat Risks
Risk Matrix
Risk Matrix
LIKELIHOOD 1 2 3 CLASSIFICATION RISK RESPONSE
IMPACT Rare Possible Frequent 1 Accept the Risk
1 Minor 1 2 3
2 Reduce the Risk
3-6 Transfer/Reduce the risk
2 Moderate 2 4 6
3 Significant 3 6 9
9 Evade the risk
Risk Assessment Tool
Introduction
AIESEC operates in a global
enviroment, which implies
that in our day-to-day
activities we are facing risks of
every kind. For that reason, we
must have a tool that could
help us to prevent uncertainty
in order to keep delivering our
core promise succesfully.
That’s why we created the Risk
Assessment Tool.
In the first tab, you’ll find
the 5 types that we use to
clasify the risks within
AIESEC: Safety and
Health, Legal, Financial,
Reputational and Future
Operations. Remember
that this is the official
classification of risks
according to our social
business nature.
You’ll also find a legend
with the Risk Matrix, which
is important for us in order
to classificate risks
according to it’s level of
likelihood and impact. As
you can see, we have
differet risk responses per
each combination, this will
help you to understand the
Risk Assessment in the
other tabs.
In the second tab, you can
find the Risk Management
Checklist. You can feel free
to fill it with your Entity’s
reality in order to obtain
the Risk Index.
At the end of the tab you’ll
be able to calculate the
Risk Index of your Entity.
This index will help you to
identify the types of risks
you should put more
attention on. It will also
give the consolidated
Entity Risk Index.
In the next tabs, you’ll find
the Risk Log for each type
of risk. This tabs will let
you register all of the risks
that your Entity may have.
Each Risk Log has ten
columns.
In the first column, you can
find the Risk Codification
of the specific risk, for their
easy identification.
In the second column,
you’ll find the Risk Agent,
which means who the
main individual related to
the specific risk.
In the third column, you
can find the Risk Element,
which is the specific risk
which is going to be
assessed in fact.
In the four column you can
find the Risk Cause that
could cause the potential
Risk Element.
In the fifth column you can
find the Risk Effect that
could bring the potential
Risk Element.
In the sixth and seventh
columns, you’ll evaluate
(from 1 to 3) the risk
element according to its
likelihood and impact
respectively. The eight
column calculates
automatically the risk
qualifitation.
In the ninth column, you’ll
find all the Risk Action
Measures that should be
performed for risk
mitigation or in case of
ocurrence of the risk
element.
In the tenth column, you’ll
find the Main Responsible,
who should be responsible
accountable for the action
measures to take regarding
the Risk Element.
Congratulations!
Now your Entity is ready to
take the first step to Risk
Management.
If you have any doubt, feel free
to contact me at
[email protected].
</CONTACT>
Mario Paz
[email protected] +51 987 741 183
