Risk Mitigation Flashcards
what is risk mitigation?
involves implementing measures to reduce the likelihood and impact of identified risks
what is the importance of risk mitigation?
- protects the organisation from potential losses
- ensures business continuity
- supports regulatory compliance
- builds stakeholder confidence
what are the different risk mitigation strategies?
- avoidance (completely removing risk averse activities)
- reduction
- sharing of risk
- risk acceptance
what are the different types of preventative controls for risk mitigation?
- preventative (segregation, access controls, authorization levels)
- detective (exception reports, file reconciliations, intrusion detection systems)
- directive (procedures and guidance manuals, induction training, team supervision)
- corrective controls (complaints process, communications and compensation)
what are the steps of control testing?
- self-certification/inquiry
- examination
- observation
- reperformance
what is risk transfer?
moving the consequences or causes of risk to another party. Includes insurance, outsourcing etc.,
what are the steps to developing a risk mitigation plan?
- risk description
- mitigation and measures
- responsibilities around the risk
- resources required to implement the plan
- timeline for implementation
what are the best practices for implementation of a risk mitigation plan?
- prioritisation
- resource allocation
- training and awareness
- documentation
what are the effective monitoring and review practices?
- continuous monitoring
- regular reviews of the measures
- feedback loops
- adjustment and updates as changes take place
what are the benefits of effective risk mitigation?
- reduced risk exposure
- enhanced resilience
- regulatory compliance
- increased stakeholder confidence
- operational continuity
what is root cause analysis?
systematic process used to identify the underlying causes of problems of incidents - helps pinpoint and issue occurring and helps prevent
what are the steps of root cause analysis?
- identify problem
- collection of data
- analysis of data
- development of solutions
- monitoring of effectiveness (of solutions)
why is root cause analysis important?
- identifies the true cause of problems
- helps develop long-term solutions
- recurrence reduction
- enhances operational efficiency
what is the purpose of an action plan?
designed to reduce risk levels of improve process/controls following incidents such as near misses or anything that exceeds risk appetites
what are the steps in the development of an action plan?
- problem statement
- setting of objectives
- actions to address the root cause
- assigning of responsibilities
- identification and allocation of resources
- timeline establishment
- evaluation of plan
what are conduct and culture?
conduct is the behavior of individuals within an organisation and how they adhere to rules and standards. culture encompasses the shared values, beliefs and norms that influence how employees think and interact within an organisation.
why are conduct and culture important?
- integrity and ethics are promoted
- risk awareness
- stakeholder trust
- sustainable success
how is a strong risk culture built?
- commitment from leadership
- clear values and expectations
- training and awareness
- open communication
- accountability
what is conduct risk?
risk of inappropriate, unethical, or unlawful behavior by
employees
what are the methods for assessing conduct risk?
surveys and questionnaires
- incident reporting systems
- audits and reviews
- behavioral analytics
what are the strategies for promoting ethical conduct?
- having a code of conduct
- leadership by example
- reward and recognition
- whistleblower protection
- regular training
what are the tools for measuring culture and conduct?
- culture surveys
- focus groups
- performance metrics (related to conduct incidents, engagement and compliance)
- exit interviews
- 360 feedback
