Risk management basics: What exactly is it?

David Hillson, The Risk Doctor, explains how to structure your risk process by asking (and answering) these six simple questions:
Q1. What am I trying to achieve? (Objective setting)
Q2. What might affect me? (Risk identification)
Q3. Which of these are most important? (Risk assessment)
Q4. What should we do about the most important ones? (Risk response development)
Q5. Did it work? (Risk review)
Q6. What has changed? (Risk updates, Learning lessons)

[@globalnook]

Q1. What am I trying to achieve? (Objective setting, Understanding scope) Q2. What might affect me? (Risk identification, uncertainties, future events) Q3. Which from Q2 answers are most important? (Risk assessment, likelihood/impact) Q4. What should we do about answers to Q3? (Mitigation, Prevention, Avoid/Reduce/Transfer/Accept) Q5. Did Q4 answers work? (Confirm effectiveness) Q6. What has changed? (Adapting to changes in the enterprise)

[@Risk-Doctor]

Thanks for extracting the main questions Randy, very useful. Except that you've misunderstood a couple of points! In the answers to Q4 we also need to include responses to upside risks - Exploit, Share, Enhance, Accept. (Remember that risk includes both opportunity and threat!!) Then Q5 is really about the risk review, where we see if planned responses had the intended effect. And Q6 is about risk updates, where we look for new risks that have emerged since the last time. Thanks again!!!

[@alirezataghipour4834]

Many thanks. It is really useful

[@samantha4675]

You are the real MVP thank you

[@saniaghani4854]

Dsiry farming

[@angrajwaghmare5715]

@SANDEEP PAKHARE Most Valuable Player

[@COGOPTV]

Truly amazing. I have heard people talk about Risk Management for years and now I have it in 4.25 minutes. Great teachers take complex things and make them simple. Thanks.

[@Risk-Doctor]

Thank you, I'm glad you enjoyed this short video. The Risk Doctor motto is "Understand deeply so that you can explain simply".

[@carloslope159]

Same here.. so long hearing confusing things and this so clear

[@user-uq6su4vy2c]

THIS WAS SO HELPFUL. BEEN HAVING WRITERS' BLOCK ALL DAY, THANKS!

[@Risk-Doctor]

Hi Melissa, I'm really glad this was helpful. I didn't think about using these six questions to overcome writer's block, but it makes sense: “What am I trying to achieve?” Write 500 good words by the end of the day. “What could affect me?” Distracted by phone calls. Get hungry. Waste time watching KZbin videos. “Which of these are most important?” KZbin! “What will I do about it?” Disconnect computer from internet so I can’t use KZbin. (Also set phone to silent, and stop for mid-morning coffee & snack.) “Did it work?” Yes! I’ve written 732 words by lunchtime - but they’re not very good. “What’s changed?” Now I need to edit these 732 draft words down to around 500 good words by the end of the day. “What could affect me?”… I'll try this next time I'm working on a writing project. Thanks!!

[@EkMusafir41]

Excellent presentation, very simple but still scientific, good voice, short and to the point. Thanks for sharing.

[@Risk-Doctor]

Thank you Ek, I appreciate your positive comments.

[@maninder2618]

that’s absolutely true that if we take risk we will achieve more then people who are not taking risks, so be the risk takers

[@Risk-Doctor]

Thanks Maninder. But we can't just take all the risks that we face without any thought or action. My motto is "Take the right risks safely"! We should try to evaluate risks, then take appropriate action - sometimes that is to take the risk, especially if it's an opportunity with a potential big benefit. But sometimes we need to be proactive to avoid or minimise the worst threats, and chase the better opportunities.

[@Smalltalkay]

1 Objecting setting : What are we trying to achieve? 2 What might effect me - risk identification 3 Risk assessment / evaluation- which of those thing effect me are most important? 4 What should we do about it? 5 Did it work? 6 what changed?

[@Risk-Doctor]

Thanks for this helpful summary Annie!

[@robtallini1346]

Great video. Years later it does a great job of explaining risk management without going into semantics for an hour.

[@Risk-Doctor]

Thans Rob, that's very encouraging. Timeless truths never grow old!

[@HarmonicInspiration7]

Cleared so many doubts, for a beginner. Gives a wider depth of knowledge.

[@Risk-Doctor]

Thanks Terence, glad you found this short video useful. There are lots of others...! Enjoy!!

[@artemiciat566]

I applied for a position in risk management and this was really helpful ! Thank you!

[@Risk-Doctor]

I'm really pleased to hear that, thank you for letting me know. I wish you success in your new role.

[@KiyosakiSays]

“In today’s rapidly changing world, the people who are not taking risk are the risk takers.” - Robert Kiyosaki

[@Risk-Doctor]

Thank you Kiyosaki, I agree entirely. A more complete version of this quote is the poem "To risk", see here: www.appleseeds.org/to-risk_WAW.htm

[@lorenzomizushal3980]

So by taking risk I'm not taking risk so I'm actually a risk taker, and if I don't take risk I'm actually taking risk but not a risk taker? Nice

[@Risk-Doctor]

@@lorenzomizushal3980. Haha! 🙂 The point is to take the right risks safely, and not to take any unnecessary risks. Sometimes not taking risk is the right thing to do, especially if the potential impact is disastrous.

[@Ptera_xd]

In order to manage risk we must first understand risk. How do you spot risk? How do you avoid risk and what makes it so risky?

[@Risk-Doctor]

Hi Ptera, thanks for these questions. Take a look at the "100 Risk Questions" playlist (kzbin.info/aero/PLXcr0g-yn-gT5sYJzDiTY-MrLSmcVpTgz), and find videos #13 and #14, which are about identifying risks. #20 and #21 are about choosing the right response (avoiding isn't always the best choice!). Hope this helps.

[@hilaryjansz4687]

Great explanation. Very accurate and straight to the point.

[@Risk-Doctor]

Thanks Hilary, I wanted this short video to cover the basics in a simple way and I hope I've succeeded.

[@GustavoSilva-ny8jc]

THANK YOU!!!!! I didnt expect to be so good!!! Can't thank you enough for the help and i love the way things were phrased.

[@Risk-Doctor]

Hi Gustavo, I'm glad I could help!

[@JArmandoCruz]

Truly amazing video. All the other videos had me a bit confused but this was simple and clear. Thank you!

[@Risk-Doctor]

Thanks for this positive feedback JC. I'm really glad this simple explanation made things more clear for you!

[@summerhe753]

That's really fantastic, so clear and even philosophical. Amazing!

[@Risk-Doctor]

Thank you for this positive and encouraging feedback Summer. i'm glad you liked this one!

[@alliedinsurancemanagersinc6220]

Engaging and useful video when it comes to risk management. I agree that most people are daunted when they hear the words “risk management”. They all think that it is complicated and hard to understand, but by addressing these simple question you were able to explain it very well. Thanks!

[@Risk-Doctor]

Allied Insurance Managers, Inc. Thanks for this positive feedback. The Risk Doctor motto is "Understand profoundly so you can explain simply." Hopefully this video demonstrates our motto in action!

[@GEIConsulting]

A superb presentation of the six essential steps to risk management, as well as an excellent, simple explanation of the entire risk management process for everyone involved in business decision making, from executives to entrepreneurs. Very straightforward, educational and easy to listen to. The video is so succinct that you won't have a chance to become bored! - DC for GEI Consulting

[@Risk-Doctor]

GEI Consulting Thanks for the positive comments. I'm SO glad you didn't have time to get bored!

[@maryamamir1480]

what a simpliest way to summaries it all, love love this content

[@Risk-Doctor]

Thank you Maryam, I'm really encouraged that these videos are useful to you, and I wish you success in managing your risks.

[@artsybloke4934]

This is amazing. Of all the time id spent to understand the core concepts of risk management, you've solved it for me in less than 5 minutes. Thank you very much for sharing your knowledge to the world! Gabriel

[@Risk-Doctor]

Thanks a lot - I'm glad you enjoyed this short video. My motto is "Understand deeply so you can explain simply"!! Risk management really is quite simple!!

[@Risk-Doctor]

Thanks Gabriel. I'm sure your efforts to understand risk management have not been wasted. Although the core concepts can be expressed simply, there is a depth in the topic that would take a lifetime to explore. Keep going!!

[@Risk-Doctor]

You are right Bassam. The basics are simple, but applying them can be challenging. The aim of this video is to encourage people who are currently doing nothing to do the basics.But even quantitative risk analysis is not as difficult as some people fear! The use of statistics, models and metrics can also be understood using a few simple concepts. I wish you success in managing your risks effectively, whether you use the basic risk process or more detailed analysis.

[@secondmarch]

Excellent presentation in explaining the Natural & Inherent Six steps connected with Enterprise Risk Management (ERM) !!!!.

[@Risk-Doctor]

+V.P. Raguram . Thanks VP, I'm glad you found it useful.

[@familysafetyandselfdefense8645]

Great simplification of a complex subject. Very helpful, thanks

[@Risk-Doctor]

You're very welcome!

[@sfrancoc]

Thank you Risk Doctor; great material to work with students. Hi from Colombia!

[@Risk-Doctor]

Thanks Sergio, I'm glad this short video is useful for you. Hi from England to Colombia!

[@ObaPosh]

Amazing, short, and straight forward.. Gained a lot.. Thanks

[@Risk-Doctor]

Thanks Jimmy, I'm really glad you liked this one.

[@mariaelkhyari9682]

Well said. Your message was clear and concise. Using this video for my class. Thank you.

[@Risk-Doctor]

Thanks Maria, I hope your class find it useful.

[@emmanuelogole2644]

hallelujah. Amazing. Truly simple to understand

[@Risk-Doctor]

Thanks Emmanuel, that's very encouraging. Now you understand it, the next challenge is to do it!!

[@harmanjottdhillon21]

Amazing, this video explained me conplex things about risk management in very few words and in very simple way . There are only 6 main points around which risk management revolves.

[@Risk-Doctor]

Thanks Harmanjott. In my experience, risk management is easy to understand and explain - but it is sometimes very challenging to do! I wish you success in managing your risks.

[@melissadun207]

Thank you very much, great explanation and simple!

[@Risk-Doctor]

Glad you liked it

[@igotmail9]

Great and awesome questions. Only genius can make complex things as easy. Thank you sir !

[@Risk-Doctor]

Thanks for your encouragement Krishna. Our motto is "Understand profoundly so that you can explain simply!"

[@lucyiskander]

Excellent and simple Risk Introduction Presentation .

[@Risk-Doctor]

Thanks for this positive feedback Lucinda, I'm glad you enjoyed this one.

[@arianechapelle3258]

Great stuff, David ! Very clear and very well said.

[@Risk-Doctor]

Thanks Ariane, glad you liked this one. You and I share the same goal - to simplify risk management without making it simplistic, as you explain here: kzbin.info/www/bejne/fYjZoJ6ldst-d68!

[@sivarudramurthy933]

Very clear, short and to the point. 👍👌

[@Risk-Doctor]

Thanks Siva, I'm glad it was helpful!

[@shemeliszewdie3851]

Thank you, I learned more within a few minutes.

[@Risk-Doctor]

That's really good to know, thanks Shemelis.

[@ZakirHussain-rv4sh]

Wonderful. You made the whole process easy to understand.

[@Risk-Doctor]

Thanks Zakir, that's very encouraging. I wish you success in managing your own risks!

[@omarsalem8731]

Thanks a million Dr. David ! I have a seminar for my graduation project and this helped me a lot. :)

[@Risk-Doctor]

Hi Omar. I'm really pleased that this short video was helpful for you, and I wish you success in your project and career.

[@steveshyman4043]

What a great video with great guidelines. When it comes to risk management on your portfolio, I recommend help from someone who understands this important topic.

[@Risk-Doctor]

Thanks Steve, we appreciate your recommendation.

[@muieb6820]

Amazing and I really do appreciated this short & very informative video. Even if 5 yrs later. Thanks a lot

[@Risk-Doctor]

Thank you Abdulrahman. These truths and principles are timeless!! And they work!

[@muieb6820]

RiskDoctorVideo absolutely true 🌹❤️

[@sakariyeharbi2479]

simple words simple examples it makes me understand well and i hope i can deliver this message to my classmates its gonna help me on my presentation (create project risk plan) thank you doctor

[@Risk-Doctor]

+sakariye harbi . Thanks Sakariye, I appreciate your positive and encouraging response. I hope your presentation goes really well.

[@evilmouse9486]

very easy to understand about the six questions, and it makes risk managment easy

[@Risk-Doctor]

Evil Mouse Absolutely, that's the goal! What could be easier than this?! I get frustrated when people say risk management is "too hard", when they really mean that they're forced to use an inappropriate process that overcomplicates things. Managing risk should be simple - and fun!

[@zebcode]

Very useful video! Thank you so much. This was a fantastic introduction to Risk Management... it's really helped me a lot.

[@Risk-Doctor]

Thanks Kiran, I'm really pleased you like this simple summary. I wish you well in managing your risks in 2015 - including both threats and opportunities!

[@yashbhanushali1300]

Thanks for the video, I understood the concepts of the topics. We want to achieve something. There may be uncertainities in the future, but we should be mentally prepared for the uncertain events.

[@Risk-Doctor]

Thanks, that's right!

[@Callcentrehub2014]

Want to know how to deal with risk management? Here's 6 step (question) process on how to effectively manage your company's risks from the Risk Doctor

[@Risk-Doctor]

Thanks for this supportive comment.

[@abdulnasir6529]

very nice ... simple and comprehensive explanation of basics of Risk Management....

[@Risk-Doctor]

Thank you Abdul. Risk management really isn't that hard, so everyone can do it! With best wishes for the New Year.

[@thuwai2055]

How invaluable lecture is in a short minutes🙏 Thank you very much Sir🙏

[@Risk-Doctor]

Thank you Thu, you are very welcome, I'm glad this was helpful.

[@prayogivun4081]

Simple and informative...Thank you

[@Risk-Doctor]

Thank you Prayogi, I appreciate your positive feedback.

[@deepakanand8570]

great explaination.. simple and crisp

[@Risk-Doctor]

Thanks Deepak, I'm glad you liked this ne.

[@steveretiredandcranky]

Excellent video, thank you.

[@Risk-Doctor]

Thanks Steve, glad you liked this one. Even though you're apparently "RetiredAndCranky", I wish you success in managing your post-retirement risks - remember they include both threats and opportunities!! Maybe managing these risks might make you less cranky??!! ;-)

[@babakmahinrad]

Simple and good, specially for beginners. thanks

[@Risk-Doctor]

Thanks Babak, glad you liked it. More free videos on the Risk Doctor website (www.risk-doctor.com/presentations/videos).

[@yudhalastname5778]

that is a very explaining explanation, thank you sir

[@Risk-Doctor]

You are welcome

[@abdiduale9161]

Thank you sir, you have truly simplified i.t

[@Risk-Doctor]

Thanks Abdi, I'm glad it helped.

[@Jbalaji]

Risk Management Basics, explained in most lucid way. Excellent and very simple. Thanks for bringing this to us. Regards Balaji - Sydney - Australia

[@Risk-Doctor]

Thank you Balaji, I appreciate your positive and encouraging feedback.

[@Jbalaji]

You are most welcome Dr David Hillson, not only content the clarity, the dressing, the care in taking videos is also very nice. After this I watched 4 of your Risk Ailments videos. Really impressive indeed!!

[@ExcelTutorials1]

I love this video!!! Summarized very well!!

[@Risk-Doctor]

Thanks, I'm glad it was helpful!

[@HubertoMadalena-rz4xs]

high velocity is often associated with taking risks. governing bodies must be assured that theiur directives have been followed

[@Risk-Doctor]

Yes I agree. Many years ago I learned an important phrase: "Slow down to speed up." It sounds strange, but the idea is that if we move too fast we end up making avoidable mistakes which we have to spend time fixing later. But if we slow down and take care, then overall we spend less time. But... Sometimes there are time constraints which must be met, which might make it hard to slow down. This is one reason why risk management is important - to stop us making avoidable mistakes by identifying and treating threats, and also to help us to work faster by finding and capturing opportunities.

[@perfumeworld2329]

Risk Management should be teaches to every one.

[@Risk-Doctor]

I agree! It's a life skill. See here: risk-doctor.com/wp-content/uploads/2020/06/19-Personal-risk-management.pdf

[@omotojulu1634]

I have understood your presentation and it is helpful.

[@Risk-Doctor]

Thank you, I'm glad this short video was useful for you.

[@kidsgrowingup8697]

Simple and on point.

[@Risk-Doctor]

Thank you Charles, I'm glad you liked this one.

[@kidsgrowingup8697]

@@Risk-Doctor I got a role as a cost and Risk engineer. I wish I can get a more on this concept and how I can create a template for my department to tracking cost and risk

[@theriskexperiencepodcast5047]

That's a great insight.

[@Risk-Doctor]

Thanks, glad you like it.

[@samkitjain6817]

amazing explaination.

[@Risk-Doctor]

Thank you for this positive feedback - I'm glad you liked it!

[@juhinaal6632]

Dr. David, I’m quoting your definition in my public webinar April the 21st!

[@Risk-Doctor]

Thanks Juhina, that's encouraging to know. I hope your webinar goes really well.

[@chancellorjohn1984]

This is the best synthesized RM intro by far! Great work David. Thanks for sharing! :)

[@Risk-Doctor]

+chancellorjohn1984 . Thanks for this encouraging feedback - much appreciated!

[@sleepagedog4242]

Thanks sir! Very informative!

[@Risk-Doctor]

I'm glad this was helpful, thanks.

[@calebmusonda6]

Wow Bravo.. 👏👏👏 I am able to understand the risk management process in just 4 minutes. Great work 💯

[@Risk-Doctor]

Thanks Caleb, managing risk really isn't that complicated!

[@brianchipalaye5703]

Thanks very much sir I really needed These simple Six questions.

[@Risk-Doctor]

You are most welcome Brian, I'm gladthey are helpful to you to focus and shape your management of risk.

[@magedgad7042]

Simple and to the point.. Thank you so much doctor Would you make us a video on how to start convincing people to have (change to) risk management mindset

[@Risk-Doctor]

Magued Ibrahim Thanks Magued, glad you like it. I'll consider your suggestion for a video on motivating people to take risk management seriously.

[@mohamedhersi2366]

Great lesson

[@Risk-Doctor]

Thank you Mohamed.

[@ojayherbert]

Thank you Very much. Very helpful

[@Risk-Doctor]

Thank you Ojay. I looked at your channel @ojayherbert - I love your music!

[@ojayherbert]

@@Risk-Doctor thanks I appreciate ☺️

[@lvteachme973]

Thank you.

[@Risk-Doctor]

You're welcome!

[@Tasmaniaadventure]

Finally, a male in healthcare that explains it simply and not like an automaton robot

[@Risk-Doctor]

Thanks Jake - although I'm not working in healthcare, just a risk consultant!

[@Tasmaniaadventure]

@@Risk-Doctor You did so well at explaining it, you teach it better than seniors in my profession 👌🏼

[@evansnkgoeng6844]

Thank you

[@Risk-Doctor]

You're welcome.

[@S.Park2024]

Thanks! It's very useful for me.

[@Risk-Doctor]

I'm glad it was useful Scott.

[@chiragbansal9445]

Superb sir 🔥🔥🔥🔥🔥🤞🤞🔥🔥🔥🔥🔥🔥🔥🔥

[@Risk-Doctor]

Thank you Chirag, I'm glad you liked this one.

[@ym2518]

Hats off! Big fan and your follower

[@Risk-Doctor]

+YM . Thank you Yasir!!

[@noureldinmohamed7051]

excellent explanation with coherence in very simplistic ways of understanding

[@Risk-Doctor]

Thank you Mohamed, I appreciate your positive feedback.

[@georgepalyo7563]

Hats off to the Risk Doctor. This was the most professional and detailed video on the subject so far that I have viewed to date. Keep up the great work, GP

[@Risk-Doctor]

+George Palyo . Thanks for the encouragement George. This 4-minute video seems to say all the essential things in a few words, and I'm glad you like it.

[@betalarajkumar]

Excellent 👌👌👌👌👌👍👍👍👍

[@Risk-Doctor]

Thanks a lot, I'm grateful for your encouragement.

[@rajendraghorpade8732]

Thanks really

[@Risk-Doctor]

You're very welcome Rajendra.

[@clarencesim1684]

once u understand risk management,you will see what losses or gain may occur...thats what I like when doing study on risk management...

[@Risk-Doctor]

Thank you for this positive and supportive comment Clarence. You're right - the purpose of risk management is to avoid losses and maximise gains. I wish you success in managing your own risks!

[@elenabodna5719]

Wow thanks sir

[@Risk-Doctor]

You're very welcome Elena, I'm glad you liked this one.

[@leoncm100]

I am applying for a role as Risk Advisor and I found this video very useful. Thankyou! However, I do have a small question: The imagery you describe sounds sort of like a stepwise upward progression yet I would imagine that The concepts would fit better into a cycle of continuous improvement per cluster of prioritised risks?

[@Risk-Doctor]

Thanks for this thoughtful feedback Leon. You're right, the six steps I describe here should be implemented in a continuous cycle. I should have made that more clear, and thanks for pointing it out.

[@alirezataghipour4834]

I have working a offshore Oil and Gas project in Persian Gulf. These days I am involving to prepare a lessens learn presentation to present in a project t management conference about risk management process in CYRUS FPSO which I have working in. I wanted to say the audience that we have the the risk process easily and intuitive apart from PMBOK process. This video has presented the exact things I had been thought about, very beautiful and magically. Here by I want to thank Mr. David and request to get permit these great questions in my slides. May I use them in my slides with referring the source?

[@Risk-Doctor]

Thank you Alireza for these very positive and encouraging comments. I am very glad that this simple question-based approach to the risk process will be useful for you.I am very happy for you to use these questions in your presentation, as long as you quote the source. They are also described in a short Risk Doctor Briefing that you can download from www.risk-doctor.com/docs/92%20Seven%20questions%20and%20risk%20process%20(DH).pdf.

[@michellechang4534]

Hi Dr. David, I love your risk videos, simple way to explain complex things. May I have your permission to share some of your risk videos, with referring the source, to assist me in explaining and cultivate risk culture awareness in my company? Many times i find it difficult to get them to understand risk management and importance of it. Your videos are just what i think could help me!

[@Risk-Doctor]

Thanks for your positive feedback. All this material is copyright protected, but please contact me directly to discuss your request ([e-mail]).

[@olgatangune2254]

I'm about to take this course this year so I need more information regarding this course

[@Risk-Doctor]

Hi Olga. Which course do you mean?

[@nimcattudunya5308]

Wonderful

[@Risk-Doctor]

Thank you

[@muhammadasimchishti9679]

Making Risk Management simpler

[@Risk-Doctor]

Thanks, that's my goal - "Understand deeply so you can explain simply."

[@weslerseni3923]

spot on

[@Risk-Doctor]

Thanks Wesler.

[@Ali-xh1rt]

Amazing , i appreciate, Thank you

[@Risk-Doctor]

Hi Ali, I'm glad you liked this one.

[@frog6054]

Interesting.

[@Risk-Doctor]

Glad you think so!

[@m-ahmedali9034]

thanks simple

[@Risk-Doctor]

+M.ahmed ali Ali . Thank you Ahmed, I'm glad you liked this short explanation, and I hope it helps you to manage your risks more effectively.

[@MrJerrylu2424]

What is the education plan to get into risk management? Classes to take major in college to get into to study or minor

[@Risk-Doctor]

Thanks for your question. This short video discusses risk management certifications: kzbin.info/www/bejne/bHO8aJiaprZ-qtk

[@nothosaur]

George Costanza would have loved this video!

[@Risk-Doctor]

I'm not a Seinfeld fan, but I think this is a compliment, right?!

[@nothosaur]

@@Risk-Doctor Yes. George was looking for a good summary of risk management, but couldn't find one.

[@Risk-Doctor]

@@nothosaur Actually I did watch that episode - very funny (kzbin.info/www/bejne/opKuoaWOYq2Db5Y). George should have watched my 4-minute video!!! Thanks for reminding me about this one! :-D

[@Anthonyn1222]

I applied for an internship for risk management as a business major. Can you do risk management as a business major? While I'm looking to go into business management I would like to also do risk management so having some experience under my belt may help

[@Risk-Doctor]

Hi Anthony. It's hard to advise you without knowing more about your plans or your experience. I guess you're in US, right? I'm sure you can do risk management there as a business major, depending on the university/college/school of course. I hope you get some good experience as an intern, and I wish you success in your career.

[@The12thSeahorse]

Congratulations! You've past the interview. Your hired, when can you start?

[@Risk-Doctor]

Haha, thanks. I can start immediately, if the opportunity is right!

[@SaLvAdOriaN127]

Is it possible to transition from a claims adjuster into Risk management? What other experience could I seek to make my resume stand out. I have experience with auto, homeowners, product liability, litigation.

[@Risk-Doctor]

It's hard to give specific advice without knowing more about your background and experience. You could move from claims into some risk management roles, but it probably requires additional training.

[@julius_themadhatter]

Could you talk about risk adjudication

[@Risk-Doctor]

Thanks for your question Julius. The term "risk adjudication" is used in two ways. It has a specific meaning in financial risk management (specifically credit risk), as "the matching of the risk or potential for loss when lending money (i.e. issuing credit) with the organisation’s need to be profitable", or in other words, assessing whether the company’s lending decisions are appropriate to the risk involved. More generally, some people have started to use the term "risk adjudication" to describe the process of allocating risks to high/medium/low-priority groups, or "adjudicating" how big the risk is. In this sense, it is just another name for risk assessment. I hope this helps.

[@spikelol9928]

what's the diference between Risk management and Reliability, Availability, Maintainability engineering?

[@Risk-Doctor]

Thanks for your question Spike. Risk management focuses on managing uncertainties that would affect objectives if they occurred. RAM engineering is one technique that is used to manage a particular type of risk, but it is much more tightly focused than risk management. I hope this answers your question.

[@spikelol9928]

Thanks a lot. I just got my civil engineering bachelor and faced a choice between Risk Eng and RAM Eng. Can you advice which one to choose? What advantages and disadvantages, what salary diferencies and getting job probability in current?

[@Risk-Doctor]

These are two very different career paths, and it's hard to advise you without knowing your interests and skills. In general, you should aim for a career that involves doing something you enjoy, something you are good at, something that is needed, and something that people will pay for. I hope this helps you to make a decision. And of course you could always start in one direction and change later if it doesn't work out.

[@dude4521]

The name of the career on universities in the U.S is "Insurance" right?

[@Risk-Doctor]

Hi Dude. No not really. Insurance is a specific technique that is used to handle certain types of risk (called insurable risks!). But risk management is much wider than insurance, and there is a different career path called "risk management". You can take degrees in risk management, or obtain professional certifications and other qualifications, some of which do not involve insurance at all.I hope this helps to clarify.

[@ameerprince4763]

If x company want to make insurance on fixed assets. According to risk management the assets must be valued based on book value or replacement value or market value?

[@Risk-Doctor]

Thanks for your question Ameer. You insure for replacement value, so that if you lose the asset the insurance payout covers the cost of acquiring the same functionality.

[@ameerprince4763]

@@Risk-Doctor thanks a lot

[@karlm8067]

I subscribed 🤠

[@Risk-Doctor]

Thanks Karl, I hope you find lots of useful material here.

[@panagiotisdl]

I am studying actuaring and i want to be a risk manager, the ''problem'' is that i am not good in maths, i can understand their applications but i find hard to memorize formulas. Should i follow risk management? or should i follow another financial branch?

[@Risk-Doctor]

Hi Panagiotis. You don't have to be good at maths to be a good risk manager! The most important thing is to be curious, ask questions, want to know what's going on and why. Where maths is involved, you will be using tools to help you. I'd suggest that you explore opportunities in risk management - in my experience it's a fascinating career choice!

[@panagiotisdl]

@@Risk-Doctor Thank you Sir!

[@Risk-Doctor]

@@panagiotisdl You might find this short video helpful: "What core competencies are required to become an effective risk professional?" kzbin.info/www/bejne/aJm2aGihjc6tobc

[@husseinarslan7173]

Risk management can i work at banks but i dont have a experience only FRM part 1

[@Risk-Doctor]

Thnks for your question Hussein. I'm sorry but it depends on the bank. Some will recognise the FRM certification, but others require more formal qualifications or relevant experience. I wish you success in pursuing your career in risk management.

[@husseinarslan7173]

can you send me your email or your number to talk with you?

[@HazzaripHD]

Suddenly I don't feel so bad about opening tf2 crates

[@Risk-Doctor]

Err, I think that's probably right!