Please enable JavaScript.

Coggle requires JavaScript to display documents.

Risk management in practice - Coggle Diagram

- - - - An organisations employees will support one or more of its operations. This may include finance, manufacturing, HR or IT operations. Where particular employees are unavailable, for whatever reason, these operations may be disrupted or become inefficient
    - - Employee negligence or misconduct may interfere with operational performance or raise the cost of these operations.
- - - - Looking at potential new recruits on social media to prejudge them regarding their suitability for new positions could lead to legal and compensation claims
    - - One or more employees using a social media platform to be abusive about another employee could lead to grievances and discrimination or cyberbullying compensation claims
    - - Employee grievances arising from colleagues or managers using social media to bully or harass them
    - - One or more employees using a social media platform in an embaassing, socially ambiguous or litigious manner
- - - - Define the scope of the project and the project constraints, to avoid the risk of any misunderstanding between participants.
      - Ensure that project participants have shared understanding of the project and that all project information can be accessed quickly and easily
    - - Focus on the agreed risk management objectives and processes
      - Ensure that all participants understand the project objectives and that risk management tools are established within any cost or resource constraints
    - - Identify the threats and opportunities associated with the project
      - Participants must understand the potential risks, the causes and effects to manage a project effectively
    - - Structure risks according to their type, severity of exposure, management expertise required and so on
      - Ensure that risks are categorised by type to allow appropriate expertise to be focused on them
      - Structure risks by probability and impact to facilitate prioritisation
    - - Assign risks to owners according to type and the severity of exposure
      - Ensure that the right expertise is available to manage risks
      - Ensure that risks are escalated to the appropriate level of management, depending on their severity
    - - Continue to estimate risk exposures to keep track of any changes
      - Ensure that risks are monitored on a regular basis and that the results of this monitoring activity are reported
    - - Evaluation of project risk management activities
      - Evaluate the effectiveness of project risk management activities, including assessment and control activities
    - - Project plan and associated risk management plans
      - Al projects require carefully planning and plans may need to be revised in the light of risks or other unplanned factors
      - Risk management plans ensure that mechanisms are in place to respond to changes in risk exposure or the emergence of risks during a project
    - - Management and control of the project through its lifetime
      - Monitor project process and manage any loss events or crises that occur
- - - - Responsibility for a variety of reporting requirements such as completion of annual company returns, changes to director and articles of assocation
      - In small organisations, the co-sec may have additional responsibilities for regulatory reporting including the reporting of data protection breaches, health and safety incidents or an organisations internal control arrangements
    - - Have responsibility for producing some or all of the reports required by regulators - may collect, validate and collate data from across the organisation to produce the necessary reports. The compliance function should design and implement reporting systems, processes and escalation procedures to ensure they receive the information they need to produce the reports
      - Oversee the regulatory reporting activities of other functions within the organisation to ensure that any compliance risks are identified, assessed, monitored and controlled in an appropriate manne. The compliance function is not directly responsible for producing and submitting reports but will oversee these activities in other functions to ensure that reports are submitted on time without errors and omissions. The compliance function will design and implement policies to ensure that the reporting processes across the organisation are appropriate
    - - Has a key role to play in producing reports that contain accounting or other financial information
    - - This function may be responsible for all health and safety related reports
      - This will include reporting of more serious health and safety related incidents where death, serious injury or ill health has resulted as well as any other reporting requirements
    - - In certain sectors, the IT function may have responsibilities to report any IT security breaches to regulators as part of requirements to report material risk events that may affect the financial viability of an organisation or its ability to meet stakeholder expectations
      - With the development of enhanced information security laws, such as the EU's GDPR, direct communication between the IT function and regulators is reducing. It is now common to have a chief information security officer who will talk to the local regualtor