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Chapter 7 - Coggle Diagram
Chapter 7
Identify risks
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Risk factor
External
- Economic changes, political, technology, etc.
Internal
- Human error. equipment problems, etc.
Leading event indicators
- Conditions that lead to events
Escalation triggers
- Events that require immediate action
Related risk
- Risks that are connected because the cause are the same
Correlated risks
+ve: Risk increase/decrease together
-ve: One risk increase while the other decrease and vice versa
Strategic risks
- Long-term decisions or events
- Impact on company ability to survive in the long term
Operational risks
- Arises from day-to-day operations
Respond to risk
TARA model
Transfer
- Low likelihood, high impact
Avoid
- High likelihood, high impact
Reduce
- High likelihood, low impact
Accept
- Low likelihood, low impact
Assurance mapping
1st line
- Management controls
- Internal controls
2nd line
- Financial control
- Security
- Quality inspections
- Compliance
3rd line
4th line
ALARP
- As low as reasonably possible
- Balancing cost and benefit
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Risk appetite
Risk averse
- Accepting risks up to a certain point as long as they represent acceptable return.
Risk seeker
- Pursuing highest return regardless of risks