Reading-Materials-3-Enterprise-Risk-Management

Risk Management Program

A structured approach to managing risks within an organization, consisting of key elements such as process, integration, culture, and infrastructure.

Risk Assessment

The process of identifying and prioritizing risks within an organization, considering attributes like impact, likelihood, velocity, and persistence.

Risk Response

The actions taken by management in response to identified risks, including categories like avoid, accept, reduce, and share.

Risk Measurement

Quantitative and qualitative methods used to measure risks within an organization, such as risk rating, sensitivity analysis, and stress testing.

Risk Mitigation

The process of identifying and addressing gaps in risk management capabilities to implement the chosen risk response effectively.

Risk Monitoring

Using models, analytics, and technologies to aggregate risk information and create dashboards for monitoring risks within an organization.

Technical Environment Risk

Risk associated with the environment in which customers and clients operate, influenced by factors like testing environment and production fluctuations.

Business Risk

Arises from issues like unavailability of purchase orders, delays in client inputs, and contracts in the initial project stages.

Programmatic Risk

Risks beyond program control, such as changes in product strategy or government regulations.

Information Security Risk

Concerns breaches of sensitive data leading to financial losses and damage to an organization's reputation.

Technology Risk

Stemming from sudden technology changes or new installations affecting operations.

Supplier Risk

Involves third-party supplier interference impacting project development.

Resource Risk

Arises from mismanagement of company resources like staff and budget.

Infrastructure Risk

Results from inefficient infrastructure planning affecting project outcomes.

Technical and Architectural Risk

Failure of software and hardware tools impacting organizational performance.

Quality and Process Risk

Due to improper process customization and untrained staff affecting process outcomes.

Project Planning

Risks from inadequate project planning leading to project failure.

Project Organization

Risks due to improper organization of a project impacting client expectations.

Political Risk

Arises from changes in governing bodies affecting investments and regulations.

Financial Risk

Possibility of losing money in investments or ventures, including credit, liquidity, and operational risks.

Strategic Risk

Uncertainties affecting a company's strategic objectives, requiring identification and management strategies.

Interview

A method of gathering perspectives by consulting key stakeholders, commonly used in designing risk management frameworks to assess risk appetite within a company.

Survey

A tool involving a larger group of people to collect diverse viewpoints on risk and control effectiveness, often used to evaluate risk culture and internal control environments within a company.

Scenario Analysis

An approach where participants reflect on potential consequences and causes of risk by receiving a story or description of a future event, useful for identifying fraud opportunities.

Fault Tree Analysis

A technique for analyzing factors contributing to undesired events, allowing participants to identify potential causes by stating objectives in reverse, such as improving customer service.

Bow Tie Analysis

A diagrammatic approach to describe, link, and analyze risk pathways from causes to consequences within a company.

Insurance Risk

The risk of value change due to deviations between actual and expected insurance costs, encompassing premium, reserve level, and disaster risks within insurance operations.