- What is risk management?
- Why is this important?
- The overall risk process including analysis, risk identification, risk assessment, risk evaluation, risk planning and risk management
Analysing the business
- Understanding the business or project activity
- Understanding the primary processes and goals
- This includes the inputs (such as business objectives, financial reports, marketing plan)
- Constraints (such as the risk management plan)
- Mechanisms (such as the analysis tools, SWOT, PEST)
- Outputs (analysis findings)
- Examples of business processes include; marketing and sales, manufacturing, billing, training, facilities management and purchasing
- Identifying risk events and constructing a risk register
- PEST and SWOT analysis
- Risk questionnaire
- The risk register will include each risk event together with information on status, probability, impact and risk response
- Risk assessment and evaluation. This stage looks at assessing the probability and likely impact of the risks identified. Decision trees. Pareto analysis. Expected Monetary Value (EMV).
- Classifying risks into “high”, “medium” or “low”
- Producing action plans based on the risk assessment and evaluation stages
- Concept of risk appetite. Risk response strategies including; risk reduction and risk removal
- Ensuring that appropriate risk responses are implemented. This will include: reacting to early warning indicators, registering changes to risks, reviewing risks and those involved, and reporting on outcomes.