RISK CONCEPT

The
W rld
Becomes
a
Riskier Place
Definition of risk
 Arthur Williams dan M.H Richard
A variation of outcomes that can be happen during specified period
 Abbas Salim
Uncertainty that probable produces loss
 Herman Darmawi
The probability of outcome different with expected result
 James S. Trieschmann et al
Uncertainty concerning loss
Uncertainty event at future
that not only influence the
income of a business entity
but also can determine the
alive or die it entity
Risk Characteristics

 Uncertainty
 Concerning loss

For specific talk :

Has the meaning problems and
opportunities
Forming of risk
 Loss of Assets ; eq fire, robbery, etc
 A human suffering ; eq accident and
death
 Third party liability
 Loss as the resulted of economic
condition, change of consumer’s
preference, and etc
Some of cause that
increasing the
uncertainty
Time gap of planning and
execution

Lack of Information

Lack of Skill
Uncertainty
Classification
 Economic
uncertainty
 Nature uncertainty
 Human uncertainty
 Risk Classification
 Pure risk  pure concerning loss
[eq: fire, disaster, robbery]
 Speculative risk concerning profit or
loss
[eq: gambling, investment decision]
 Risk Classification (2)
 Systemic Risk /Fundamental risk 
consequences to many
[eq: disaster]
 Unsystemic risk / Particular risk 
consequences to some people/party
[eq: fire]
 Risk Classification (3)
 Static Risk  stable equilibirium
[eq: death, old day]
 Dynamic Risk  changed by technology
advance, sociology, and another reasons
[eq: computer tech]
Risk Classification (4)
 Transferable risk  transfer to
insurance company
[eq: pure risk]
 Untransferable risk  can not be
trasfered to insurance company
[eq: speculative risk]
Risk Classification (5)
 Internal risk  coming from inside
of corporation
 External risk  coming from
outside corporation
Risk Classification (6)
 Financial risk (unphysical) 
coming from financial transaction
 Operational risk (physical) 
coming from operational events
Important Terminologies
 Peril , events or incidents that concerning loss (directly)
[eq: fire, robbery, accident]
 Hazard, conditions that enlarge the probability of peril
Type of hazard …..
 Exposure, the object that probable hitted by peril
 Probality , the possibility of event that concerning loss
 The law of the large numbers, “bigger exposure
makes more accurate result “
 Type of Hazard
 Physical Hazard
[eq: slippery road, blind turning,..]
 Moral Hazard
[eq: forgetfull, careless, ….]
 Legal Hazard,
[eq: workers not use the safety
equipment , …]
 Risk Management
The implementation of management
functions in risk taking that faced by
organization/company, family,
individual and society
Risk Management Process
 Identify Risk
 Evaluate Risk (measure and judge)
 Select risk management techniques
 Implement and review decisions
The contribution of risk
management for...
 Individual / risk manager
 Company/corporation/institution
 Family
 Society
FINISH
 Tugas Kelompok
(Tugas Mingguan II)
 Tentukan ketua kelompok
 Kelompok Cari Nama (nama paling hebat akan
diberikan nilai tertinggi)
 Berikan alasan logis penamaan kelompok tersebut
 Menjawab 3 pertanyaan yang diberikan (cari
perusahaan yang MR baik, kemukakan alasan, 5
macam risiko, cara penanggulangan)
 Menyerahkan tugas kelompok dalam bentuk double
folio/ketikan