Risk Register for Bangladesh - Example

Risk register for Bangladesh 1A risk matrix refers to a tabular recording of the element of risk against some other variables for example the frequency of occurrence of the risk. It is an array of mathematical risk variable, usually in a rectangular or square format that is used in making certain decisions or for solving mathematical problems. Risk matrices are of different kinds and of different orders depending on the variable used and the purpose for which the matrix is to be put into. Some matrices are complex whereas others are simple. Matrices vary in size and content and even the arrangement of the same data or items can be done using very many methods. 2The following is an example of or a risk matrix whereby the vulnerability of a community is measured in terms of relative frequency of occurrence (Y-AXIS) against the riskiness (X-AXIS), that is, the level of risk. It is a 2 by 2 matrix but other matrices that are complex for example 3 by 3, 5 by 5 et cetera can be drawn. Figure 1: High risk; Low frequency. High risk; High frequency. Low risk; Low frequency. Low risk; High frequency. 3Prioritization of risk refers to the ranking of risks according to a given criterion. Usually risk is prioritized according to their importance or urgency in which they need to be handled or dealt with. Usually the government or insurance companies prioritize risks so that they can allocate to those risks sufficient funds to enable these agencies to deal with the risk appropriately and at the right time. For example in Bangladesh, there is high risk of floods ad water borne diseases because the country’s larger population is located near water bodies. Thus the government can prioritize the brisk of flood and allocate to it more funds so that the risk can be handling d well when it will occur. It follows from the matrix therefore that the risks which are ranked d as having high frequency of occurrence and are generally high in their destructive nature are given priority when it comes to matters of national importance. 4Some other risks on the matrix can be prioritized by using the destructive or effects the risks have on the community. 5When it comes to the prioritization or risks on a table, it will be shown that a table is a bit different from a matrix. A table just records risk elements against certain variable for example the number of people that are vulnerable. A table can also be used to record the actual facts on the ground concerning the occurrence of a certain risk factor over a given period of time for example one year or over a span of a certain number of months. The riskiness is usually assigned a given variable for example between 1 and 10, whereby 1 represents the least risk and 10 represent the riskiest variable. These may be recorded on the columns then the different groups of people that are subjected to the risk factors are recorded along the rows. This will aid the researcher or the person using the table to critically analyze the different variables that relate to risk and know the appropriate action to take when something happens. Therefore using a table, the risks that have high values on the table are prioritized. For example a risk element with value 10 will be given more preference than one with value 5. The following is an example of a tabular record of a table (risk table) and how the risk recorded can be prioritized. Figure 2: Type risk/  Group vulnerable floods diseases crime financial totals Male parents (fathers) 5 7 7 7 27 Female parents (mothers) 5 9 5 4 21 Children 5 10 3 1 19 Teenagers 5 5 7 2 19 Administrators 5 6 6 8 23 Business people 5 4 9 10 28 Sailors 5 7 9 9 30 Tourists 5 8 9 1 23 students 5 6 8 3 22 The table shows that from the sample risk that the community faces, the sailors are the most vulnerable and therefore risks faced by this group of people should be prioritized. The least vulnerable to an average risk measurement are teenagers and children. The extent of a risk to the community refers to the length or farness the risk is able to directly affect the lives of the individuals who constitute that community directly or indirectly and either jointly as a community or individually. In other words it is the degree to which the risk is going to affect the community. Or in simple terms the range or area covered by the risk. 6The definition of community in respect to risk is a collection of individuals who have common interests or characteristics. Or people who live in a common area, have a common background or history or have one or two general characteristics that bind them together and enable their identification and distinction from others. When we talk about extent or risk to the community, we imply the vulnerability of the community to a given risk. For example in our table above, the extent to which the business community is vulnerable to financial risk is very large. This is because their lives revolve around financial matters and money. Thus they are the most affected by the financial risk that may be brought by any factor, may it be natural or artificial. Children also, inferring from the same table are the most vulnerable to diseases. This is because usually their immune system is not yet fully developed and therefore the extent to which diseases affect them is very large or very high so to say. In fact they are the most affected by the risk of diseases with a score of a high of 10 which is the highest in the table. It has also been scholarly proofed that most young people are affected by the risk of drug abuse to a very large extent than any other group of people in the community. 7As it has been shown in the above discussion, a risk register entails the collection, measurement, recording, analysis, and dissemination of information pertaining to a given risk so that appropriate measures or counter measures can be taken to avoid adverse effects on the community or the society. A chart that comprehensively cover he table given above showing the type or frisk and the total extent of riskiness can be at a glance be shown as exemplified below. The y-axis represents the level or extent or risk whereas the x-axis represents the different groups of the community constituents that are vulnerable to that particular risk given in the y-axis. Graphical representation of extent of risk to the community-figure 3 8The last part of this study entails the discussion of the factors that increase the vulnerability of the community to risk. It must however first be generally accepted or understood that everybody in the society within the communities we are living in faces a certain risk only that the extent of the risk is what differs from individual to individual and therefore from community to community depending on various factors which I am going to look at. The following are some of the few common factors among the very many that increase the vulnerability of a community to risk: 1. Infrastructure. 2. Level of education/illiteracy level. 3. Government policies. 4. Population/demographics. 5. Economic conditions/living standards. 6. Location/area of residence. 9Infrastructure: it refers to the network of all essential linkages that will facilitate ease transport and communication in the community. It entails al the road networks, telephone lines or network coverage, electricity, airway system, ports and even information systems in use. All these are very crucial determinants of the vulnerability of a community to any risk. For example taking our example, assume it is the risk of crime, a community that lacks efficient infrastructure is not able to combat crime easily because the criminals will be hitting and either running or hiding because the con cornered authorities cannot be informed about the incident in time and even if they are told, they cannot respond quickly and be at the \scene of crime to apprehend the criminals as soon as they reported because of poor roads. Poor electricity network also increase the community’s vulnerability as the criminals are able to do their criminal acts in the dark. Other issues also follow from the poor infrastructure. Therefore infrastructure should be improved especially that touching directly a prioritized risk so that proper and appropriate action can be taken to save the community from demise. 10Level of education/literacy level: this is one major issue that has disturbed many governments, that is, fighting illiteracy/ignorance. People are perishing all over the world not because they deserve to die or suffer but because they lack the basic knowledge about prevention, defense mechanisms and how to avoid certain risky undertakings. Therefore, if the community has a lot of people who are illiterate, such a society will have high vulnerability to risk because the decision making power of the people is poor/low. For example a community may be ignorant about the prevention of a certain waterborne disease like cholera or dysentery, usually, the public is made aware of the necessity of latrines/toilets, and people are also enlightened about cleanliness and how to dispose of waste. But is the community constitute of illiterate people whose level of education is low, they may despise the lessons and do their things just carelessly. This will thus increase their vulnerability to risks especially those associated with health and safety matters. The chances of such a people losing economic gains from certain undertakings also become quite high. Fr example the losses that will occur from poor taxation techniques and how to make use of tax benefits, how to apply the latest improved business techniques et cetera. Government policies: the government has a very big role to play in building the welfare of the people. In fact, it should be understood that the welfare of a people is not inherited but bought. The government, through prioritization or risks and projects can either increase or decrease the vulnerability of the community to risk. Certain policies are very detrimental to the community’s welfare for example mining around or near a people’s natural habitat, allowing untreated industrial affluent to be disposed into water bodies or into regions which are of health importance to the society. Medical policies, policies that concern public transport, security, finance, culture, trade, interest rates, diplomatic relations, aviation, marine transport, inflation, balance of payments, export trade, farming, taxation and almost on all the community’s day to day lives can increase the extent to which such a community is subjected to risk thus increasing or decreasing the vulnerability of the community. Population/demography: this refers to the composition, size, distribution, composition and the engagement of the society as a whole. The composition of the population is very important as it determines what risk is likely to have a lager extent to them, for example a community composed of mainly children in vulnerable to diseases. 11A society whose large part is unemployed means that the crime rate will be very high. A community whose lager is constituted of sailors is vulnerable to sea related perils whereas a community of business people has vulnerability to economic losses or financial hazards. Young people in the society are vulnerable to drug abuse therefore a society that has many youths is faced with the risk of being affected by the scourge of drug abuse. Economic conditions: this is also another important variable that can be used to determine the vulnerability of a community to risk. Usually, the welfare of a people I translated and measured in terms of the living standards of the people. A community whose living standards is low are generally even from commons sense vulnerable to certain risks for example the risk of starvation, the risk of sexually transmitted diseases as they will engage themselves in prostitution and other immoral behavior in order to get ‘their daily bread’. A community with a poor income will also be very vulnerable to diseases as their eating habit will be very poor, their access to proper and god medical attention will also be poor and thus their health will be endangered. 12Location: lastly, the place where community live will in one way or the other contribute to the vulnerability of the community to frisk associated with that area. For example a sea-shore community can be struck by floods, by waterborne diseases, by other sea perils et cetera. References: 1) Baldwin, Ben G. (1995), Consumer’s Guide to Insuring your Life, Property and Income. New Ed. McGraw-Hill: London. 2) Bernstein, Peter L. (1996), Remarkable Story of Risk. Wiley Publishers: Sydney. 3) Raphael Adam. 1999, The Ultimate Risk: Lloyd’s Catastrophe: Four Walls Eight: London. 4) Vaughan, Emmett J. (2005), Essentials of Risk Management and Insurance. 4th Ed. Wiley Publishers: Sydney. 5) Vaughan, Emmett J. (2001) Essentials of Risk Management and Insurance. 2nd Ed. Wiley, 2001. Willey publisher: Sydney. 6) Risk management, May, 2003. Retrieved on: http://www.healthinsurance_public_health.com/ 7) Briefing of world health Organization, 2005. Retrieved on: http://www.who.com/ 8)http://www.encarta.com/       Read More