Module 2: Types of Risks for Concordia

📘 Reading Material (2–3 Paragraphs)

Risk identification is the first and most critical stage of any enterprise risk management (ERM) framework. It involves systematically scanning the internal and external environment to detect events, conditions, or trends that may affect the achievement of organizational objectives. At Concordia, this can include anything from foreign currency fluctuations impacting procurement, to regulatory changes affecting tender eligibility, or internal process delays in supply chain and sales.

Once risks are identified, they must be classified into categories such as operational, financial, strategic, compliance, or reputational. This classification helps prioritize response mechanisms. For example, a risk related to tax penalties falls under compliance, while product delays due to port congestion are operational. After classification, risks are logged into a Risk Register and visualized in a Risk Heatmap—a tool that maps likelihood vs. impact—helping management allocate resources effectively.

The Risk Committee plays a supervisory role in ensuring that departments actively report and classify risks, and that emerging risks are continually reassessed. Historical events—like the pandemic, currency collapse, or supplier shutdown—should also be considered for forward-looking scenarios.

📺 YouTube Video Suggestions

Here are real-world YouTube videos to support learning for this module:

1. Risk Management Explained | Risk Heatmaps

   • 🔗 https://youtu.be/wYIfsC8nN-o
     (Simple visual explanation of heatmaps & risk types)

2. Operational vs Strategic Risks | ERM Institute

   • 🔗 https://youtu.be/lQydij_MqS4
     (Highlights classification examples with business cases)

3. Creating a Risk Register in Excel

   • 🔗 https://youtu.be/gxyHHWONXZI
     (Great for internal team who'll maintain registers)

❓ FAQs (5) — Dual Language, One Sentence Format

1. What is the first step of risk management? | အန္တရာယ်စီမံခန့်ခွဲမှုအဆင့်တွင် ပထမအဆင့်ဘာလဲ?
   Identifying potential risks across departments | ဌာနအသီးသီးမှ ဖြစ်နိုင်ခြေအန္တရာယ်များကို ဖော်ထုတ်ခြင်းဖြစ်သည်။

2. What are the major types of risks? | အဓိကအန္တရာယ်အမျိုးအစားများကဘာများလဲ?
   Operational, Financial, Strategic, Compliance, Reputational | လုပ်ငန်း၊ ငွေကြေး၊ မဟာဗျူဟာ၊ စည်းမျဉ်းလိုက်နာမှု၊ မျက်နှာသာ။

3. Why is classification of risks necessary? | အန္တရာယ်ခွဲခြားခြင်း အရေးကြီးသည့်အကြောင်းရင်းကဘာလဲ?
   To prioritize actions and assign ownership | ဖြေရှင်းမှုများစီစဉ်ရန်နှင့်တာဝန်ပေးရန်လိုအပ်သည်။

4. What is a Risk Heatmap used for? | Risk Heatmap ကို ဘာအတွက်သုံးလဲ?
   To visualize and rank risks by severity and likelihood | အန္တရာယ်များကိုဖြစ်နိုင်မှုနှင့်အကျိုးသက်ရောက်မှုအလိုက် မြင်သာအောင်ပြသရန်။

5. Who is responsible for reporting risks? | အန္တရာယ်များကို သတင်းပေးရန် ဘယ်သူတာဝန်ရှိလဲ?
   All departments and employees are responsible | ဌာနအသီးသီးနှင့် ဝန်ထမ်းအားလုံး၏ တာဝန်ဖြစ်သည်။

🔍 Expanded Risk Categories with Real-Life Examples (Updated)