Sebastian, Jessielvie C.
BSHM2A
09 Homework 1
JRD Association’s 11th Annual Convention
Categories Examples
Operational Risk This category is a risk loss arising from improper implementation of processes
such as external issues, weather problems, government regulations, political
and environmental pressures etc. Operational risk is simply created due to
inefficiencies in business operations carried by the assigned
organization/group. These are losses incurred by damages caused to physical
assets due to natural disasters or other events like terrorism and vandalism.
Rapid and unexpected changes in climatic conditions have been a constant
cause of concern in the business world for more than a decade in recent
history.
Technological risk This risk is due to sudden or complete change in terms of technology and
sometimes even includes installation of new technology (mic or speakers).
Electrical sparks, short circuits etc. are also part of it. Other examples include
power outage, computer crash, data loss, communication loss, audiovisual
problems and more.
Scope and Schedule This risk might include traffic while going to the venue, over attendees, theft
during the event, incomplete attendance of speakers or late arrival of the
speakers.
Internal and External This risk includes labor, equipment, materials, energy/electricity, snacks and
Cost drinks provided/sold, and other disposable and non-disposable materials
during the event to accommodate the needs of the audience like chairs and
snacks to keep their boredom away. This risk also includes the reservation fee
and rental fee of the venue.
Risk Probability Consequence
Operational Risk Low Probability, High Operational risk probability will be low if
Consequence you made sure that the weather in that
day is good and there’s no possible
threats but if this happens, the event will
have to be canceled and rescheduled
because of the current problem that the
event has come across with. If this
happens then a smaller number of
audiences might come to the rescheduled
event but if you’re lucky enough then you
might get the opposite result.
Technological Risk Low Probability, High Technological issues will have low
Consequence probability if the electrical circuits etc.
are at the right place. The event won’t
have any problems if these things are at
the right place but if they are placed
wrong then the consequence will be high
since it might cause sparks or worse fire.
This fire will have a great cost if the
establishment was burned to ashes and if
someone died from it. This will probably
cost you much to cover all the casualties
from the incident.
Scope and Schedule High Probability, High This risk is both high in probability and
Consequence consequence. Since traffic became a
normal thing in the Philippines,
international guests/speakers might be
shocked and be late on the event. If they
are late, especially the speakers, then the
event will be pushed back just to wait for
them or just like in the operational risk,
the event might be
cancelled/rescheduled. This way will just
waste the time of professionals in the
event and may create a bad impression of
your organization to them.
Internal and External Cost Low Probability, High Internal and external cost has low
Consequence probability if all the needed material,
equipment etc. are planned well and are
double/triple check occasionally. Another
factor that affects its low probability is
that budget plan is well executed for the
event. On the other hand, this risk will
create a high consequence because you
will have to withdraw money that is not
actually included in your budget. Example
of this is broken chairs or any other
materials/equipment inside the facility,
another one is accidents like broken glass
window or the one mentioned in
technological risk which is fire.
QUESTIONS:
Which risk will you accept? How do you plan to address them?
- Operational risk and technological risk will be the ones that I will accept since this are the
common problems faced in an event. I will address them by having teams to check and keep
an eye on technological and electrical problems. The organization assigned should identify
the key areas of concern and measure the probability of occurrence and impact on the
event. I will hire an IT specialist to assist with the process for the technological risk at hand.
Operational risk on the other hand will be addressed by spreading risk accountability across
the organization members so that they will know what to report immediately and
introduced to a solution. This is to create timely risk assessment to lessen further problems
during the event. Another one is to implement consistent and well documented controls;
this is to have necessary measures to actively mitigate identified priority risks.
What risk can you avoid? How do you plan to address them?
- Scope and Schedule; internal and external cost
- The organization can avoid/reduce internal and external cost by having a thorough budget
planning and having assigned group to overview possible problems that will further result to
external costs. There should be watchers/volunteers (mga taga-sita) willing to provide
reminders to audiences or other people that are creating actions that might cause damage
such as broken chair because they are rocking it. Scope and schedule on the other hand can
be avoided by providing advance reminders to guests/speakers/audiences. They should
inform them that shuttle is provided within limited time only because of problematic traffic
and such. They should also inform participants of the said event by a week before the said
event will take place so that the participants will have time to adjust their schedules for the
said event.
