Risk
RIS
K
Management
for Start-Ups
Rakesh Modak
14-11-2024
01
Risk Management Infographics
RISK
MANAGEMENT
Process of managing
risks with structured
processes in order to
control them in an
effective manner.
1º 2º 3º
IDENTIFY RISK ASSESS RISK CONTROL RISK
Analyzing and
Identifying and listing evaluating the risks Neutralizing the
potential risks that have been potential threats that
identified have been identified
02
Risk Management Process
STRUCTURE
03
Risk Identification
Risk identification is the
step where the
organization should
identify sources of risk,
areas of impacts, events
and their causes and
respective potential
consequences
04
Risk Identification Techniques
PROJECT USABILITY COMPLETENE
AND PROJECT SS
PHASE Ensuring the tools and
Aligning tools with the
INTERACTION COMPLEXITY techniques provide a
specific stage of the Prioritizing tools that Choosing tools suited thorough and
project. are simple to use and to the project's level of comprehensive risk
promote effective team complexity.
interaction. identification.
05
Tools for Risk Identification
SWOT
Analysis
Decision-making
technique that
A
identifies various
aspects of a project. Risk Matrix
Scenario
B A tool used to assess
and categorize risk
severity based on
Planning
This tool visualize
rating.
different risk
scenarios and plan C
possible outcomes
accordingly. Brainstorming
A problem solving
D method that
generates ideas for
risk management
strategies.
06
Risk Matrix
A risk analysis tool is used to assess the
likelihood and impact of each risk and to
categorize the levels of those risks.
Example of a basic Risk Matrix
07
Risk Evaluation
Approaches
Definition
Quantitative:
Involves identifying, analyzing, Weighted scores and
and prioritizing risks to probabilistic models.
understand their likelihood and
impact, guiding resource Qualitative:
allocation effectively. Expert judgment and multi-
criteria decision-making to
support robust
Assessment Techniques
Techniques include expert HIGH MEDIUM LOW
intuition, audit techniques, and
stratified scoring methods (e.g.,
red-yellow-green scoring).
08
Risk Treatment
The purpose of risk
treatment is to act in
response to risk
identified. Four risk
treatments are:
Risk Avoidance
Risk Mitigation
Risk Acceptance
Risk Transference
09
Risk Monitoring and Review
Purpose
The purpose of risk monitoring is to
detect new and emerging risks that
can prevent minor risks from
escalating into bigger problems,
fosters continuous improvement and
risk awareness.
Process
Importance
Establishing the context
Early detection
Risk Identification
Provides insights and better decision-
Risk Analysis
making
Evaluate Key Risk Indicators(KRIs)
Helps in allocating resources
Regular Monitoring and Review
10
Best Practice for Risk Reduction for
Start-Ups
1º Develop a detailed
business plan along
Solution with adaptable strategy
Financial management
2º and diversify revenue
streams. Create a risk-
Solution aware culture
3º Strong customer
relationship build with
solution trust and transparency
4º Invest in strong
cybersecurity practices
solution to protect data and IP
11
Unavoidable and Avoidable Risks
Market volatility and Product or Service quality
economic downturn issue
Technological and regulatory
Operational inefficiencies
changes
Supply chain disruptions and Improper budgeting and
cybersecurity threats financial planning
UNAVOIDABLE
AVOIDABLE RISKS
RISKS
12
Risk-Reward Ratio(RRR)
It is considered as performance
measures in financial decision-making
which quantify the expected reward
relative to the associated risk.
With the help of RRR, investors and
RRR managers can protect portfolios against
extreme losses while pursuing targeted
returns, thus enhancing resilience and
long-term performance.
13
Introduction to LLMs in Risk
Management
LLM
Key Phases of LLMs for Start-ups
It is a type of AI that
generates contents in
human language. Eg:
ChatGPT, Copilot, etc. Counter
Identificati Evaluatio
measur
on n
es
Benefits of LLMs LLMs LLMs LLMs
Offers Strategic identifies introduce recommend
insights and risk common tools like affordable
management
Simplifies complex risks risk matrix strategies
risk processes relevant to for risk suited for
Helps start-ups to
navigate
the prioritizati different
uncertainties industry on teams
Welcome, and thank you for participating in this study on risk
management. As part of my Master’s research, this study explores
how Large Language Models (LLMs) can help small startups
identify, assess, and manage unique business risks. Your insights
will be invaluable in evaluating LLMs as a practical tool for startup
risk management.
