Risk Connectivity and Networks Flashcards
what are risk networks?
Visual representations of the connections between different risks. In these networks, each node represents an individual risk, while the edges (lines connecting nodes) represent the interdependencies between them
what is risk connectivity and why is it important?
refers to the interdependencies between different risks, recognizing these interconnections is crucial for identifying potential ripple
effects and developing a comprehensive risk overview
how are risk networks created?
- identifying key risks
- mapping connections
- analysing connections
- visualisation of the network
what are the main tools used for analysing risk connectivity?
casual loop diagrams (show cause-and-effect relationships between risks, making it easier to identify feedback loops and reinforcing effects)
Bow-Tie Analysis (visualizes risk pathways and control measures, helping to understand risk scenarios and mitigation strategies)
Network Analysis Software (Software is used to map and analyse the risk networks in details)
what are the benefits of risk networks?
- provides a holistic view
- enhances predictive capabilities
- improves resource allocation
- support strategic decision-making
- enables the development of more effective risk-mitigation
what are the challenges of risk connectivity analysis?
- can be complex to identify and map all the connections
- accurate and comprehensive data is required
- dynamic nature of risks means, the network needs to regularly updated to remain relevant
- there is a potential for information overload
what are the best practices for managing risk connectivity?
- regular updates to reflect changes
- involve cross-functional teams
- utilise advanced analytical tools to improve accuracy and usability
- integrate risk connectivity analysis into the overall risk management framework
- provide training and raise awareness about the importance of risk connectivity
