RIMS CRMP-Implementing the Risk Process

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RIMS CRMP-Implementing the Risk Process

1. Risks: The effect of uncertainty on objectives

The chance of something happening that will have an impact on objectives Being prepared for the worst and being poised to exploit opportunities as they are discovered

2. Risk management strategies' general focus: Meeting or exceeding an orga-

nization's objectives Adhering to control-based objectives, rules and/or controls Complying with regulatory requirements

3. Communication and Consultation: Risk management professional's role in

Implementing Risk Strategies

4. Risk Identification Process: Finding, Recognizing and Recording Risks

5. Risk Analysis: The process of characterizing and understanding the nature

of risk and of considering the level of risk in the context of the organization's willingness to accept risk.

• Likelihood, Consequences, other criteria such as timing, duration, vulner-

ability and interdependencies: Risk is typically analyzed on the basis of

7. Bow tie analysis: hazard analysis technique (cause and consequence)

8. Business impact analysis: consider business impacts at a location or from a

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9. Gap analysis: determine steps to improve the organization's capacity to move

from a current state to a desired, future state. (current available factors, success factors needed to achieve future desired objectives, highlighting the gaps)

• Root Cause Analysis: multiple techniques designed to identify the underlying

or initiating risk sources or drivers. (fault tree analysis, event tree analysis, failure mode and effect analysis and cause-and-effect analysis - fish bone diagram)

• Influence analysis/diagrams: identify the strength of influencing factors and

help determine potential weighting for consideration during the risk assessment process. Define root causes for major risks, define the chain of events likely in a scenario and become the foundation for further modeling.

• Risk Register Analysis: compile risk into a risk register to analyze and man-

age those risks in an organized way, typically by category.

• Scenario analysis: process of analyzing possible and plausible future events

by considering alternative settings, circumstances and outcomes. It provides a basis for making decisions in the context of different conditions.

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