Risk identification is the process of determining risks that could potentially prevent the programme, enterprise, or investment from achieving its objectives.
Risk Insights Explorer supports management in undertaking risk identification and assessment in a disciplined and systematic way, an approach we believe is the first step in establishing vital risk communication within an organisation.
Using Risk Insights Explorer management undertake event identification to develop a list of specific events that, if they occur, could affect your organisations ability to achieve its objectives. For each event, management performs a risk assessment by evaluating the likelihood that the event will occur and estimating the probable impact of the event if it does occur.
Risk Insights Explorer provides a holistic lens for viewing the interdependent nature of business risks. Because events do not occur in isolation, management should understand how events interrelate. By assessing interrelationships, your leadership team can determine where risk management efforts are best directed.
We believe knowing as much as possible about uncertainty – how risks are perceived, how they interconnect, what the landscape looks like – is crucial when managing risk.
The key to effectively managing risk is taking a holistic view. Interconnections in processes, systems, trade and investment lead to more systemic risks. A sound methodology must consider the interconnections between mission-critical risks, both now and emerging—and how these interrelate.
Continue reading “Step 2: Risk Connections”
A “trend” is defined as a long-term pattern taking place that could contribute to amplifying risks and/or altering the relationship between them.
Prior to completing the survey industry-specific trends will be identified and agreed with the risk team. In this step respondents will identify three trends that reflect the most important trends likely to shape business development in coming years.
For each trend identified, now select the risks you believe are the priority for that trend. You will be using the risk wheel again, please select up to 3 risks.
Risk Insights have developed our own unique assessment approach for the Risk Perception Survey. Impact and Likelihood assessments can be made on a scale of the company’s choosing e.g. 1 to 5, 1 to 7, .
To avoid a common problem of assessments rating the majority of risks as ‘High’ our risk perception survey ‘nudges’ respondents to consider assessments in relation to each other e.g. the impact is “Definitely more than others”, “probably less than others”.
Combined with our unique drag-and-drop approach, respondents can assess all the risks they have identified quickly and confidently.
The Bank of England (BoE) stress tests examine the potential impact of a hypothetical adverse scenario on the health of the banking system and individual institutions within it.
From 2017, the annual cyclical scenario will be complemented by an additional scenario intended to probe the resilience of the system to risks that may not be neatly linked to the financial cycle — the ‘biennial exploratory scenario’.
Risk Insights Explorer’s unique functionality enables Banks’ to map the BoE exploratory scenarios and undertake advanced risk interconnection analysis.
The 2017 exploratory scenarios
A risk trend is a long-term pattern that is currently taking place and that could contribute to amplifying risks and/or altering the relationship between them. Unlike risks, trends are occurring with certainty and can have both positive and negative consequences. Trends can alter how risks evolve and interrelate, and they inform efforts at risk mitigation.
The structural trends that drive uncertainty stem from multiple sources. Regulation will continue to broaden and deepen as public sentiment becomes less tolerant of any appearance of preventable errors and inappropriate business practices. Simultaneously, customers’ demands and expectations change as technology and new business models emerge and evolve. Unless your organisation acts now to prepare for these longer-term changes, you may be overwhelmed by new requirements and developments.
New Thinking, New Insight.
Risk Insights is an opportunity for organizations to enhance their users’ ability to identify, manage, and share risk information; and control risk content for improved compliance and security.
More power to your decision-making
Risk Insights helps you process risk information more efficiently and better manage and share critical business knowledge, making the most of the knowledge of every person, resource, and opportunity. Risk Insights helps you improve productivity by having all the necessary tools in one place while the community builder component helps your employees work together to make the most effective risk decisions.