Risk identification is the process of determining risks that could potentially prevent the programme, enterprise, or investment from achieving its objectives.
Risk Insights Explorer supports management in undertaking risk identification and assessment in a disciplined and systematic way, an approach we believe is the first step in establishing vital risk communication within an organisation.
Using Risk Insights Explorer management undertake event identification to develop a list of specific events that, if they occur, could affect your organisations ability to achieve its objectives. For each event, management performs a risk assessment by evaluating the likelihood that the event will occur and estimating the probable impact of the event if it does occur.
Risk Insights Explorer provides a holistic lens for viewing the interdependent nature of business risks. Because events do not occur in isolation, management should understand how events interrelate. By assessing interrelationships, your leadership team can determine where risk management efforts are best directed.
We believe knowing as much as possible about uncertainty – how risks are perceived, how they interconnect, what the landscape looks like – is crucial when managing risk.
The key to effectively managing risk is taking a holistic view. Interconnections in processes, systems, trade and investment lead to more systemic risks. A sound methodology must consider the interconnections between mission-critical risks, both now and emerging—and how these interrelate.
Continue reading “Step 2: Risk Connections”
A “trend” is defined as a long-term pattern taking place that could contribute to amplifying risks and/or altering the relationship between them.
Prior to completing the survey industry-specific trends will be identified and agreed with the risk team. In this step respondents will identify three trends that reflect the most important trends likely to shape business development in coming years.
For each trend identified, now select the risks you believe are the priority for that trend. You will be using the risk wheel again, please select up to 3 risks.
Risk Insights have developed our own unique assessment approach for the Risk Perception Survey. Impact and Likelihood assessments can be made on a scale of the company’s choosing e.g. 1 to 5, 1 to 7, .
To avoid a common problem of assessments rating the majority of risks as ‘High’ our risk perception survey ‘nudges’ respondents to consider assessments in relation to each other e.g. the impact is “Definitely more than others”, “probably less than others”.
Combined with our unique drag-and-drop approach, respondents can assess all the risks they have identified quickly and confidently.