Transcript

Value creation is any process that creates outputs that are more valuable than its inputs.

A farmer uses land, equipment, water, labour, sunlight and seeds to grow onions. He creates value from these resources.

A craftsperson uses labour and tools to create a canoe from wood.

A designer uses software to create a design for a chair.

A bank uses technology, labour and capital to offer mortgages to its customers.

[Slide]

Risk management helps you to create value by identifying uncertainties, risks, and opportunities and managing the consequences of these – good or bad.

The international risk standard, ISO 31000, can be used by you to create or protect value by managing uncertainties, risks and opportunities, by making informed decisions, by setting and achieving objectives, and by improving your performance.

Risk management is success management. It is also uncertainty management.

[Slide]

The risk management process provides information related to your performance and whether you are implementing your strategies and plans effectively when there are uncertainties to the achievement of your objectives. The process will enable you to make better-informed decisions that will create value for yourself and others around you.

Organisations deliver value by providing products and services to their customers that meet their needs at a price that they are prepared to pay. Products and services provide a solution to their customer’s problem. Creating and delivering sought after solutions that have value for their customers help them sell products and services.

[Slide]

Risk management can help individuals and organisations identify uncertainties, risks and opportunities and manage the potential consequences that are related to both their current and future strategies and operations. It helps them to be successful by achieving their objectives through the effective implementation of their strategies and plans.

Employees have paid jobs because they help their employers create value for their customers. They are paid for the value that have been created for their employer and employer’s customers. Salaries that they receive in return for work done is an indication of the quantifiable value that they create for their employers. This keeps them in employment.

Like organisations having to manage their uncertainties, risks and opportunities to create and deliver value to their customers, individuals and employees must likewise manage their personal uncertainties, risks and opportunities so that they can continue to create and deliver tangible value to their employers and ultimately to their employer’s customers.

As such, employees must continuously upskill themselves or even learn new skills to be in a position of value creation.

[Slide]

Managing uncertainties through risk management practices is applicable to both organisations and individuals.

Businesses large or small, small business owners, and even family enterprises manage their uncertainties, risk and opportunities to create and deliver value to their customers and stakeholders.

[Slide]

Thanks for watching.

For more videos like this, go to PracticalRiskTraining.com.