Module 13 - Business Analysis, Risk identification & Assessment

Question 1

6 steps to maintain a comprehensive risk identification and assessment

Answer 1

Business Analysis (company objectives + wider environment)
Risk identification (upside + downside)
Review of risks ito correlations and responsibilities on management
Assess the risk, evaluate it ito probability and severity
Have a risk register
Monitor the risk register regularly esp in times of changes

Question 2

Benefits or risk assessment and identification

Answer 2

Enhances awareness and transparency
It’s a baseline for further risk analysis, quantification
Improves the quality of reporting to the board
Enables knowledge to be transferred to the whole organisation
Helps in decision making

Question 3

Lams 4 stage risk assessment procedure

Answer 3

Foundation setting (sponsorship, resources, taxonomy)
Risk identification and assessment (objectives, appetite, regulation, top down, bottom up)
Deep dive into risk evaluation (Top risks, tolerances, KRI)
Intergration of risk ERM (reporting, strategy, everyday link, risk escalation, risk databases)

Question 4

Risk identification tools

Answer 4

SWOT analysis
Risk prompt
Risk checklist
Process run through
Risk taxonomy
Case studies
Process analysis

Question 5

7 risk concepts

Answer 5

Capital
Exposure
Probability
Volatility
Severity
Time horizon
Correlation

Question 6

Benefits of a risk map

Answer 6

Brings people together across the org to talk about risk
Enables a better understanding of risks
Effects of risk management activities
Which risks require more attention
And the final map is a good visual for the board
Effectiveness of risk controls and
And what would happen if they fail

Question 7

Emerging risks management challenges (4)

Answer 7

Globalisation
Restructuring
Technology
Changing market structures