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ISO 31000 (Published 2009) - Structured Risk Management Process - Coggle…
ISO 31000 (Published 2009) - Structured Risk Management Process
Risk & Risk Management
Risk = "Effect of uncertainty on objectives"
Tactical Risk
Projects, Mergers, Acquisitions & Product developments
Risk Assement
Identify & Evaluate
Positive, Negative or Greater Uncertainty
Risk ranking
Quantitative
Semi-quantitative
Qualitative
Risk Classification Systems
To analyze nature, source or type of impact of the risk
Classification systems enables which strategies, tactics & operations are most vulnerable
Financial Control, Operational efficiency, Reputational exposure & Commercial activities
Assesment of significant risks and the implementation of suitable risk responses
Understanding of potential up and downside of factors affecting organizations
Increases propability of success
Integrated into culture of organization
Support accountability, performance measurement & reward
Risk Management Process
Reporting & Monitoring Risk Performance
Reviewing the Risk Managment Framework
Responding to Significant Risks
Treat
Risk Avoidance
Risk Transfer
Risk Control
Risk Financing
Transfer
Tolerate
Terminate
Resourcing Controls
Ranking or Evaluation of Risks
Reaction Planning
Recognition or Identification of Risks
Enterprise Risk Management (ERM)
Recognise & Prioritise Significant Risks
Success = Compliance, assurance and enhanced decision making
Benefits efficiency of operations, effectiveness of tactics, efficacy of the organizational strategy
Other benefits
competitive advantage
better marketplace presence
improved perception of organization
more accurate financial reporting
reduced cost of capital
enhanced political support
enhanced community support
Planning and Design
: Must be comprehensive
Risk architecture, strategy and protocols in
Risk Management Policy
Disclosure Committee
Group Risk Management Committee (GRMC)
The Board
The Audit Committee
Risk Management Responsibilities
Individual Employees
Risk Manager
Business Unit Manager
Specialist Risk Management
CEO / Board
Internal Audit Manager
Drivers of risk Management
Financial Risks
Infrastructure Risks
Marketplace Risks
Reputational Risks
Mandate and Commitment by the Board
Implement Risk Manaement
Monitor and Review Framework
Design of Framework
Improve Framework
Risk Appetite & Tolerances
Board Level
- driver of strategic decisions
Executive Level
- Procedures to ensure risks receives adequate attention
Operational Level
- Dictates operational constraints for routine activities
Evaluate existing controls
Embed Risk aware culture
Monitor Risk Performance
Report Risk Performance