5902 final overall.docx - Week 5 Explain the function of...

Info icon This preview shows pages 1–4. Sign up to view the full content.

Week 5 Explain the function of the risk process within the risk architecture In order to manage risk effectively To achieve this consistently, a systematic process is needed to reveal and understand risks, and to modify them where necessary. This is the purpose of the Risk Management Process within the organization's Risk Architecture Explain the steps and identify the elements of the risk process
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Explain why risk is first put into context, and explain the difference between internal and external context and their relationship to risk factors The aim of the ‘establish the context’ step in the risk management process is to identify the organization’s objectives , and those external and internal factors that could be a source of uncertainty, so that risks can be identified. Because risk arises from an organization pursuing its objectives against the uncertainties created by its internal and external environment, a very clear understanding is needed from the outset of both the organization's objectives and these environments. It is therefore a necessary first step priorto risk identification. If not executed properly, we may miss a significant source of risk or develop risk management strategies that are inconsistent with the organization's goals, culture or operating environment (including regulation and laws). It should be regularly reviewed due to the potential for organizational goals and internal and external environments to change. The internal environment is the way the organization is structured and operates, including the resources it has available and the people in it. It is a source of risk despite being within control of the organization. The internal context is the internal environment in which the organization seeks to achieve its objectives. –It is anything within the organization that can influence the way in which an organization will manage risk. external environment can often not be controlled by the organization The external context is the external environment in which the organization seeks to achieve its objectives Understanding the external context is important in order to ensure that the objectives and concerns of external stakeholders are considered when developing risk criteria
Image of page 2
Discuss methods for setting the risk context and the elements of a risk context statement There are three elements to this part of establishing the context, these determine the following: (a) The purpose, scope and circumstances of the risk management activity. (b) A structure and approach for the risk management activity. (c) The resources, techniques and tools needed for the risk management activity. Contextualizing Risk Process Activities Explain risk identification and its role in the risk process Identify and discuss key elements of a risk register and its function A risk register is a central inventory that catalogues various risks and, for each one, its type, origin, prevention tactics, mitigation options and potential countermeasures. It contains the identification, assessment and mitigation outcomes.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 4
This is the end of the preview. Sign up to access the rest of the document.
  • One '11

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern