Risk Management Tools and Templates
RiskForesights.COM Integrated Risk Management Guide – 2021
Risks are significant anticipated uncertain future Threats and Opportunity Events that have not materialised, but should they materialise they will either have a Negative or Positive impact on the Achievement of your Personal or an Organisation’s Strategic and Operational Objectives
Timely Identification and Response to Risks assists Humankind to proactively Influence and Prepare for the Future we all Desire
RiskForesights.COM’s Approach to Risk Management provides you with the capability to have Foresight on Future Threat and Opportunity Events that may materialise so that you can do something about them now while focusing on the Present and Current Needs
For Decision Making to be effective, it starts with a basic logical principle which is Integrating Risk Foresights as guided by your Risk Appetite and Tolerance Levels into Decision Making as well as your existing Strategic and Operational Management Processes
Risk Management Reporting
Reporting on Risk Management Initiatives just like an other reporting tool is key to measuring progress an Organisation is making torwards achieving its desired Outcomes. (e.g. Integrating Risk Foresights into Decision Making and Strategic Planning; Becoming a High Performance Organisation)
A Performance Indicator or Key Performance Indicator is typically described as a Type of Performance Measurement which evaluates the success of an Organisation or of a Particular Activity in Which and Organsation Engages In. KPI.ORG describes Key Performance Indicators (KPIs) as “the critical (key) indicators of progress towards an intended results. KPIs provides a focus for Strategic and Operational Improvement, create and analytical basis for decsion making and helps focus attention on what matters most” What has results in visible outcomes gets done.
It is against this background that for Risk Management Efforts to be Impactful and Relevant there should be Key Performance Measures that track progress towards an intended outcome which should be the foundation of any Risk Reporting.
Risk Management Leading and Lagging KPIs
A Performance Indicator or Key Performance Indicator is typically described as a Type of Performance Measurement which evaluates the success of an Organisation or of a Particular Activity in Which and Organsation Engages In. KPI.ORG describes Key Performance Indicators (KPIs) as “the critical (key) indicators of progress towards an intended results. KPIs provides a focus for Strategic and Operational Improvement, create and analytical basis for decsion making and helps focus attention on what matters most” What has results in visible outcomes gets done.
It is against this background that for Risk Management Efforts to be Impactful and Relevant there should be Key Performance Measures that track progress towards an intended outcome.
Just like any other KPIs, Effective Risk Management KPIs should:
- Provide objective evidence of progress towards achieving a desired outcome
- Measure what is intended to be measured to help inform better decision making
- Offer a comparison that gauges the degree of performance change over time
- Track efficiency, effectiveness, quality, timeliness, governance, compliance, behaviours, economics, project performance, personnel perfomance or resource utilisation.
Risk Identification Tools and Techniques
Documentation Reviews: The standard practice to identify risks is reviewing Industry or Organisation, Objectives related documents such as lessons learned, articles, organizational process assets, etc
Information Gathering Techniques: A few of them are:
Brainstorming:
Scenario Planning
Delphi Technique:
Interviewing:
Root Cause Analysis:
Swot Analysis (STRENGTH, Weakness, Opportunities And Threats):
PESTLE Analysis: (Current Political, Economic, Societal, Technology, Legal and Natural Environment)
Assumptions / Hunch Analysis:
Risk Assessment Methods and Techniques
Some of the tools that can be used for qualitative risk analysis include:
Probability And Impact Matrix
Risk Data Quality Assessment
PERFORM QUANTITATIVE RISK ANALYSIS
Data available
Quality and reliability of the data
Integrity of the data
PERFORM QUANTITATIVE RISK ANALYSIS
DETERMINING QUANTITATIVE PROBABILITY AND IMPACT
Expected Monetary Value Analysis
A Monte Carlo analysis:
Decision Tree