The Risk Management Process
Although there appear to be a large number of conflicting processes for risk management, most boil down to the same basic principles. Our approach to risk management is based on meeting current standards and best practice.
Our RiskAid products lead the user through the whole process and we support the approach by providing a comprehensive range of education, training and consultancy services.
The Risk Management Process
The environment and framework for risk management within any organisation consists of four key elements:
- Define the risk framework
- Articulate the organisation's risk appetite
- Create a risk culture
- Establish risk governance
Adopting these principles will maximise the success of the process.
The risk management process provides comprehensive, methodical support for risk management throughout the full lifecycle and is shown below.
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(Hover your cursor over any item to see an explanation)
The process can be carried out at any time within an organisation for operations, projects, programes, strategic objectives or even the whole business. The benefits are most apparent if it is started as early as possible and revisited regularly. RiskAid software leads you through the process in a logical and systematic manner. The key steps are:
- Identify the events which may have an adverse effect
- Quantify the risks in terms of impact and probability allowing you to focus on the most severe
- Identify and implement mitigating actions to either prevent the event rfom occurring or to minimise its effect.
- Finally, continue to monitor the situation and ensure that risk impact and probability are kept current and actions are still effective.
Our RiskAid and RiskAid Enterprise products support every stage of this process, providing a collaborative working environment. The software takes care of all the calculations, maintains the data and offers the correct displays and reports whenever you need them. RiskAid understands that you are working with uncertainty and allows you to express it. It shows you where the uncertainty is relevant and where it doesn't matter.
Further details of the RiskAid risk management process can be found in The RiskAid Method