Organisational Risk Management

Question 1

Define ‘risk’

Answer 1

The effect of uncertainty on objectives

Question 2

To understand risk, what else do we need to understand?

Answer 2

We need to understand what our objectives are

Question 3

What is the difference between risks, and threats and hazards?

Answer 3

• A threat or a hazard can contribute to a risk and are chiefly what we know about
• Risk, however, takes that information from many other sources and then considers uncertainty- the unknown - to make an assessment of overall risk

Question 4

Name the four key risk categories

Answer 4

• Operational
• Corporate
• Portfolio
• Strategic

Question 5

What should you do throughout all stages of the risk management process?

Answer 5

Communicate and consult

Question 6

Step one of the risk management process

Answer 6

1. Establish context:

- This help us to see the wider picture of the risks we need to manage.

Question 7

Regarding step 1 of the risk management process, describe the two types of context we need to understand?

Answer 7

Internal context - things within Police that influence how we manage risk eg, your objectives, policies and processes, resources, knowledge and skill level.

External context - things outside Police that affect our ability to manage risk. For example, social, cultural, political and legal environment as well as relationships with stakeholders.

Question 8

Step 2 of the risk management process

Answer 8

2. Identify risks:
   - present in all of our work
   - doesn’t mean we cannot do it - does mean we must understand why and how it is risky, and ensure these risks are proactively managed.
   - we must be able to identify a risk to be able to manage it and to prevent harm to us, our colleagues, our communities, or the organisation.
   - we are responsible for identifying risks in our areas of responsibility.
   - consider risks and opportunities.
   - record risks in a way that can be used by yourself or others at a later date.
   - be clear about the cause, what could happen and who will be responsible for taking action

Question 9

What is step 3 of the risk management process?

Answer 9

Step 3: Analyse risk

Question 10

What does step 3: analyse risk involve?

Hint: risk and controls

Answer 10

It involves seeking further information to develop an understanding of two key things -

1. The level of risk
2. Controls in place

Question 11

What tool might you use to help analyse your level of risk?

Answer 11

A risk matrix

Question 12

Which two areas does a risk matrix analyse?

Answer 12

The likelihood and the consequence

Question 13

What does determining the likelihood and consequence of a risk allow you to do?

Answer 13

You are then able to categorize and communicate the significance of it

Question 14

List some different types of controls

Answer 14

Policies, SOPs, training, supervision

Question 15

What is step 4 of the risk management process?

Answer 15

Step 4: Evaluate

Question 16

What does step 4: Evaluate allow us to do?

Answer 16

It allows us to consider how comfortable we are with this information, and what we need to take action on.

Question 17

List the different types of action we could take when managing risk

Answer 17

• Act
• Monitor
• Accept
• Acknowledge that effective management is achieved

Question 18

What is step 5 of the risk management process?

Answer 18

Step 5: Take Action

Question 19

What two actions does a risk owner have if existing controls are not managing a risk to an acceptable level of comfort?

Answer 19

They can either ACT or MONITOR the risk

Question 20

If you act on a risk, what impact does this have on the risk itself?

Answer 20

It should reduce the likelihood or consequences pre- (prevents) or post- (responds to) the uncertain event.

Question 21

How often should a risk owner monitor and review a risk after a risk evaluation?

Answer 21

As often as is appropriate for the level of risk and assurance we have.

Question 22

Regarding active risk management, what are the three lines of defence that we have at our disposal?

Answer 22

1st line - all Police personnel
2nd line - Districts/Service Centres/PNHQ work groups
3rd line - the assurance group

Question 23

List some risk management activities

Answer 23

• planning/SPTs
• new initiatives
• changing how we do things
• changes in our operating environment
• near misses/lessons learnt/events