Risk Management

You can manage the risks that may arise during strategy execution under the "Risk Management" tab.

Note: All information on this page can be applied to any "Strategy Component" under its own "Risk Management" tab.

Risk Information

After clicking the "New" button, you can begin recording risks by completing the definitions below.

Risk Record Type

You must select one of the following types from the drop-down list.

• PRV - Organizational - Preventable
• STR - Strategic
• EXT - External

Defining the Parent Risk

If you want the risk to be hierarchically dependent on an existing risk, you can select the existing risk as the "Parent Risk" from the window.

Organization Information

You must select a Risk Owner from the window. The logged-in user is displayed as the risk owner by default. You can change the risk owner by selecting another user from the window.

You can select a Management Organization and a Department.

Risk Management Information

You must define a Risk Entry Date.

You can also define an Impact Start Date and an Impact End Date.

Risk Status

Although the default risk status is "LA - Active," you can manually select one of the following statuses to indicate the risk's current status.

• LA - Active
• XA - Closed
• YC - Cancelled
• ZZ - Archived

Defining the Priority

You must define a priority by selecting one of the following:

• 0 - Normal
• 1 - Medium
• 2 - High

Defining the Category

You must select a Risk Category from the list.

Risk Description

After completing the selections above, you can describe the risk using text and images under the "Risk Management" tab -> "Risk Description" tab.

Adding Text and Images

In addition to adding text, you can also insert images.

To add an image, you must click the "Insert Image" icon.

You can add images using two methods:

1. Entering the image URL
2. Selecting from system documents

Entering the Image URL

To add an image directly from the Internet, you must enter the image URL, commonly referred to as its web address.

Selecting from System Documents

First, you must upload the image to the system documents.

You can upload files under the "Documents" menu.

You can then add the image using its Document ID.

When you click the "Insert Image" icon, a system message explains how the Document ID should be entered.

Risk Impacts - Analysis

Risk impact assessment is the process of evaluating the likelihood and consequences of risk events if they occur.

The results of this assessment are then used to prioritize risks by establishing a ranking from the most critical to the least critical.

Ranking risks according to their criticality or importance provides managers with the insight required to manage risks and reduce the likelihood of high-probability, high-impact negative risk events.

Under the "Risk Management" tab -> "Risk Impacts - Analysis" tab, you can create risk assessment records for both inherent and residual risks.

Inherent Risk Analysis Information

Inherent risk is the level of risk associated with an activity before any controls or other mitigating factors are applied (gross risk or risk before controls).

You can assess the inherent risk by defining the following fields.

If the inherent risk consists of multiple threats and opportunities, you can define these multiple risk impacts in the "Risk Impacts [ Threats - Opportunities ]" section and have the system calculate the risk analysis parameters based on the definitions entered here. See: Below.

Risk Probability

You can select a Risk Probability from the list.

Impact Level

You can select a Risk Impact Level from the list.

Risk Level

You can select a Risk Level from the list.

Risk Amount - Currency

You can enter a risk amount and select a Currency from the drop-down list.

Residual Risk Analysis Information

Residual risk is the risk that remains after controls have been taken into consideration (net risk or risk after controls).

You can assess the residual risk by defining the following fields.

If the residual risk consists of multiple threats and opportunities, you can define these multiple risk impacts in the "Risk Impacts [ Threats - Opportunities ]" section and have the system calculate the risk analysis parameters based on the definitions entered here. See: Below.

Risk Probability

You can select a Risk Probability from the list.

Impact Level

You can select a Risk Impact Level from the list.

Risk Level

You can select a Risk Level from the list.

Defining Risk Impacts [ Threats-Opportunities ]

If the risk consists of multiple threats and opportunities, you can begin defining these multiple risk impacts after clicking the "New" button.

You can then have the system calculate the risk analysis parameters based on these risk impacts.

Risk Impact Group

You must determine whether the risk is a threat or an opportunity by selecting one from the drop-down list.

Impact Amount - Currency

You can enter an impact amount. The currency will be displayed according to the selection made in the "Inherent Risk Analysis Information" section.

Risk Impact Type

You can select a Risk Impact Type from the list.

Residual Impact Analysis Information

After defining the following fields for each inherent risk impact, you must enter values for the relevant "Impact Factors." These values will be used as coefficients to determine the contribution of each risk impact to the overall assessment.

Impact Probability

You can select a Risk Probability from the list.

Impact Level

You can select a Risk Impact Level from the list.

Risk Level

You can select a Risk Level from the list.

Residual Impact Analysis Information

After defining the following fields for each residual risk impact, you must enter values for the relevant Impact Factors. These values will be used as coefficients to determine the contribution of each risk impact to the overall assessment.

Impact Probability

You can select a Risk Probability from the list.

Impact Level

You can select a Risk Impact Level from the list.

Risk Level

You can select a Risk Level from the list.

Calculating Risk Analysis Parameters for Multiple Impacts

After defining multiple inherent and/or residual risk impacts, you can have the system calculate the risk analysis parameters based on these definitions.

To do this, you must click the "Populate Risk Analysis Parameters from Impacts" button.

The system will calculate the risk analysis parameters and populate the fields in the "Inherent Risk Analysis Information" and "Residual Risk Analysis Information" sections.

Each impact contributes to the overall risk assessment in proportion to its "Impact Factor," while the "Risk Amount" will be the total of all impacts.

Please note that the "Risk Impact Group" selection determines whether the impact amounts are included as positive (+) or negative (-) values in this calculation.

Assigning Tasks for the Risk

You can assign a new Task under the "Risk Management" tab -> "Tasks" tab.

The task status is displayed as "Planning."

When you complete the task, you can record it under the "Risk Management" tab -> "Tasks" tab -> "Activities" tab.

Recording Completed Activities for the Risk

You can record the Activities performed in relation to the risk under the "Risk Management" tab -> "Activities" tab.

Viewing Risk Lifecycle Records

After clicking the "Lifecycle" row under the "Risk Management" tab -> "Menu" tab, you can view the Risk Status change records.

For each record, the following information is provided:

• Previous Status : The risk status before it was changed.
• Next Status : The status to which the risk was changed.
• Duration [Days] : The number of days elapsed between the two status changes.

is specified.