Set the risk management foundation with AI based risk management software
What is Risk Management?
Risk management is a continual process of predicting, identifying, evaluating, monitoring and reducing/mitigating potential risks; where ‘risk’ refers to the ambiguity and uncertainty surrounding circumstances, events or earnings/profits. In terms of business, the term ‘risk’ can be classified into operational, financial, people, strategic, compliance, regulatory, governance and perimeter risks. Risk encompasses any elements that threaten the achievement of organizational goals.
Predict360 enables organizations to identify, quantify, monitor, and manage risk. It accesses the environmental, financial, legal, reputation, and safety impact and likelihood of a risk at the business unit level. An organization then aggregates the risk. It integrates internal controls, such as training, policies and procedures, and tasking, with risk. Predict360 provides a fully-integrated ERM solution, which facilitates organizations to minimize risk and make strategic decisions. Predict360’s configurable Risk Management Software that enables organizations to better manage risks related to these functions by tying the activities of risk mitigation back to the standards, regulations and business requirements that drive them.Predict360 is licensable as a standalone web-based application or as part of an integrated regulatory change management, audit, incident, policy, procedures, competency and learning management solution.
Try applying the following Five-Step Risk Management Process for success at your organization:
FIVE STEPS FOR SUCCESSFUL RISK MANAGEMENT
Step One: Risk Identification and Documentation
Identify all risks that are likely to affect the portfolio of the organization’s projects and investments. Encourage employees across the organization to identify and notify risk managers of potential risks. Maintain and regularly update a comprehensive risk register to document all risks.
Step Two: Risk Assessment and Risk Prioritization
Assess the probability of the incidence of each risk as well as the severity of its impact/consequences. Assign numerals denoting the probability and severity of impact. Use this information to calculate the risk magnitude (probability x impact), accordingly prioritize risks and mark them as critical or acceptable.
Step Three: Risk Control, Reduction and Mitigation
Moving from highly critical to acceptable risks, create and implement strategies to ‘eliminate or prevent risks’ (thus reducing its probability of occurrence) and/or ‘mitigate or resolve risks’ (thus reducing severity and adverse effects). Document strategies and their outcomes in the risk register for reporting purposes.
Step Four: Risk Monitoring and Risk Review Meetings
Continually monitor and gauge the extent to which risks of individual projects have been reduced or eliminated as a result of implementing the risk management process. Risk review meetings should be held regularly to reassess, re-evaluate and re-prioritize risks over the course of the project lifecycle.
Step Five: Risk Reporting and Risk Learning
Compile risk profile reports (listing risks, their significance, the risk control plan, its implementation and effectiveness, and recommendations for improvement) for stakeholders and Board of Directors. Lastly, ‘risk learning’ incorporates feedback from the organization to improve the risk management process.