Process Flashcards
What are the 4 main components of the process circle?
Identify
Assess
Plan
Implement
What is always at the centre of the MoR process cycle?
Communication
What are the common process barriers?
Lack of organisational culture that appreciate the benefits
Immature risk management practices
Lack of risk facilitation resources and time
Lack of senior management sponsorship
Lack of clear guidance
Lack of training, tools and techniques
Lack of incentives
Lack of policies, process, strategies and plans
Explain Identify Context
The goal is to obtain information about the planned activity and how it fits into the wider organisation and market/society.
What are some techniques used in the Identify context step?
Stakeholder Analysis PESTLE analysis SWOT Horizon scanning Defining the probability impact grid
Explain Identify Risks
The goal is to identify the risk to the activity objectives with the aim of minimising threat whilst maximising opportunities
Name the techniques within Identify the risks
Checklists Prompt lists Cause & effect diagrams Group techniques Questionnaires Interviews Assumptions analysis Constraints analysis Risk descriptions
Expand
Risk Cause
Risk Event
Risk Effects
Cause - the event or situation that GIVES the risk
Event - the area of uncertainty in terms of the threat or opportunity
Effect - the impact the risk would have on the activity should it materialise
Expand Assess - Estimate
The goal is to prioritise the individual risks so that it is clear which risks are most important and urgent.
What is the inherent risk?
The exposure from a specific risk before action has been taken to manage it
Expand Assess Evaluate
The goal is to understand the risk exposure faced by the activity by looking at the net effect of the identified threats and opportunities on an activity when aggregated together
What techniques are used in Assess Evaluate?
Summary risk profiles Summary expected value assessment Probabilistic risk model Probability trees Sensibility analysis
Explain Plan
The goal is to prepare specific management responses to the threats and opportunities identified ideally to remove or reduce the threats and to maximise the opportunities
What are the techniques for the plan step?
Risk response planning
Cost benefit analysis
Decision trees
Expand Implement
The goal is to ensure that the planned risk management actions are implemented and monitored as to their effectiveness and corrective action is taken where responses do not match expectations
