- 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.
Example Candidate Response Booklet
Example Candidate Response (ECR) Booklets are a source of crucial information for Centres and Candidates as they use real candidate responses. We ask Senior Examiners to comment on five or more responses in terms of why the mark was awarded with commentary about how to improve the answer (if necessary).