When we accept that risks are interconnected it follows that we should consider interconnectivity in our risk analysis and management. When the interconnectedness of events is frequently cited as being at the root of large-scale failure, then why are risks still largely analysed and managed independently or in isolation? While there has been progress in looking at risks from a portfolio perspective and balancing the total amount of risk, more can be done to factor dependencies and linkages in the assessment of risks and how they are addressed.
Identifying and assessing interconnectedness promotes a broader and deeper understanding of the risks to your organisation. Risk Insights Explorer is a unique tool which can help organisations:
- Identify relationships between risks
- Ensure that risk connections are analyzed and addressed
- Understand the ripple effects of decisions
- Avoid unintended or unanticipated consequences
- Inform risk responses and increase the effectiveness and efficiency of risk action plans
- Encourage proactive communication and engagement.
Risks are represented as circles (nodes)