9.6 Risk reporting Flashcards
Effective risk reporting exists to support d________ m______ in an organisation.
decision making
What is RAG reporting?
Reporting on a scale of Red Amber and Green to indicate risk exposure.
List 5 risk reporting tools.
Heat maps Loss and near miss databases Risk control and performance indicators Risk dashboards and balanced scorecards Narrative reporting
What is a heat map?
A diagram showing risks on a colour scale (often RAG ratings)
What types of indicators may be reported to boards and senior management?
Indicators showing exposure to one or more risks.
Control indicators showing effectiveness of controls.
Give 3 examples of common risk indicators.
Staff turnover
IT firewall breaches
Credit scores of suppliers
etc.
Give 3 examples of common control indicators.
Frequency of electrical testing
Unresolved audit indicators
Number of policy breaches.
What is a risk dashboard?
A method of reporting various risk and control indicators, heat maps, and other reporting into a single spread.
What is a balanced scorecard?
A method of reporting that focusses on multiple sources of value/risk (rather than just financial measures)
What are the four most common rsk factors for balanced scorecards?
Financial performance
Operationl efficiency
Human resources
Compliance
What is narrative reporting (in the context of risk)?
Use of words to explain how risk exposure is changing.
What are Ashby’s 4 key considerations when designing and implementing risk reports?
1 Audience and its requirements
2 Size of the report and level of detail
3 Degree of statistical complexity
4 Reporting frequency
