 |
|
|
 | Establishing Risk Management |
|
|
Risk management is as much about identifying opportunities for gain and improvement as it is about avoiding or mitigating losses.
Communicate and consult
Communication and consultation are important adjuncts to each step of the process. For this reason, it is important that a communication plan be developed at the outset, for consulting with internal and external stakeholders, in regard to the overall process and at each stage of the process as appropriate. A consultative approach is useful to:
|
|
|
-
Help appropriately define the context;
-
Ensure risks are identifi ed effectively;
-
Bring different areas of expertise together in analysing risks;
-
Ensure that different views are appropriately considered in evaluating risks and appropriate change management occurs during risk treatment; and
-
Promote the 'ownership' of risk by managers and facilitate the engagement of stakeholders, allowing them to appreciate the benefi ts of particular controls and the need to endorse and support a treatment plan.
|
Key outcomes:
- All key stakeholders have been consulted and involved as appropriate.
- Stakeholder perceptions of risk have been addressed.
- Where necessary, a communication plan has been developed.
- Ownership of risk and controls by all members of the organisation.
To establish effective risk management, the first step is to evaluate the risk management needs and risk management practices that already exist within the organisation. The evaluation serves to identify any gaps and anomalies across the organisation and establish the foundation to develop a risk management policy, risk management plan and the necessary supporting arrangements. The risk management plan will detail strategies for incorporating risk management into the systems, processes and practices of the organisation. The same principles apply to organisations of all types and sizes, whether pubic, private, not-for-profit or large or small.
Evaluating risk management needs
Management practices and processes which include elements of risk management will already exist in many organisations. In light of the risk management needs of the organisation and its context, a critical review and assessment of existing risk management processes will deliver a structured understanding of the:
-
Characteristics and effectiveness of the existing risk management systems, processes and practices;
-
Consistency and degree of integration of risk management across the organisation and the scope of risk types considered;
-
Systems and processes that require modification and / or expansion;
-
Constraints likely to limit full integration of risk management systems and processes;
-
Applicable legislative and or compliance requirements; and
-
Resource constraints.
|
|
PROUDLY SPONSORED BY
|
|
|
