Identify the specific risks that your organization faces. These could be financial, operational, strategic, or even external macroeconomic factors. Consider both known risks and those that might be lurking as "Black Swans" (high-impact, rare events)
Categorise risks into specific buckets, and create a risk scoring algorithm. Organisations often create a risk hierarchy (ranging from Level 1 to Level 3) in line with regulatory frameworks; AuditCue supports this out of the box
Assess the impact and probability of each risk within its category. You can use qualitative or quantitative methods for this assessment, depending on the nature of the risk and the availability of data.
Prioritize risks based on their potential impact and probability. Develop risk management strategies that are tailored to each risk category. High-priority risks may require more comprehensive and proactive strategies, while lower-priority risks may be addressed with simpler or reactive approaches.
Assign controls and responses for each risk, with timelines, deliverables, metrics, data sources, & monitoring mechanisms. Avoid, Mitigate, Accept, or Transfer based on risk appetite and your goals. Re-visit your risks and update the post-remediation scores
Develop contingency plans for high-priority risks. Cultivate organisational resilience or "anti-fragility" - if an unknown risk does occur, brainstorm how systems can be structured to absorb and emerge stronger
Schedule regular risk assessments. Communicate risk plans, priorities, owners, action plans, current status, and improvement plans across the company.
Risk Management is an ongoing process. Your risk assessments will throw up recommendations, corrective actions or observations. Track it all here and get things ready for the next cycle. Continuous improvement, simplified.
