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    Example Risk Identification

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    tolosa.andres
    This document provides examples of good and bad risk descriptions, and outlines steps for a risk identification process. It suggests identifying an institution's objectives, stakeholders, value creation activities, and critical processes. Potential risk sources and changes are listed, such as accidents, crime, economic variance, and technology failures. Management should consider interconnections between identified risks.

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    Example Risk Identification

    Uploaded by

    tolosa.andres
    44 views4 pages
    This document provides examples of good and bad risk descriptions, and outlines steps for a risk identification process. It suggests identifying an institution's objectives, stakeholders, value creation activities, and critical processes. Potential risk sources and changes are listed, such as accidents, crime, economic variance, and technology failures. Management should consider interconnections between identified risks.

    Original Title

    07. Example Risk Identification

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    This document provides examples of good and bad risk descriptions, and outlines steps for a risk identification process. It suggests identifying an institution's objectives, stakeholders, value creation activities, and critical processes. Potential risk sources and changes are listed, such as accidents, crime, economic variance, and technology failures. Management should consider interconnections between identified risks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views4 pages

    Example Risk Identification

    Uploaded by

    tolosa.andres
    This document provides examples of good and bad risk descriptions, and outlines steps for a risk identification process. It suggests identifying an institution's objectives, stakeholders, value creation activities, and critical processes. Potential risk sources and changes are listed, such as accidents, crime, economic variance, and technology failures. Management should consider interconnections between identified risks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Risk Identification examples:

    One can see from the following examples that failure to correctly define your risk will affect control identification, mitigation plan and
    ultimately reporting. "Garbage in garbage out" analogy. Below, we have provided some examples of "good" and "bad" risk
    descriptions: (Adapted: AUS/NZ Standard 2004)
    Issues to Consider in the Risk Identification Process,

    1. What are the main objectives of our institution?

    What are our strategic objectives? What are our business objectives?
    What are our financial targets? What are our service delivery targets?
    What are our other key targets?

    2. Who are our stakeholders and how can they pose a risk to us and how can we pose a risk to them?

    Customers Communities
    Suppliers Creditors
    Employees

    3. How do we create value for stakeholders?

    Service delivery Financial sustainability


    Reputation Compliance
    Administration

    4. What are the critical success factors

    Core skills IT systems


    Cost containment Budgeting
    Staff retention

    5. What are the institution's critical processes?

    Procurement Processing payments


    Distribution Information management
    Administration
    6. What are the potential sources of risk and change that could impact on the above?

    Accidents Cash flow variances Civil unrest


    Contract breach Crime Currency exchange rates
    Distribution failures Economy variance Engineering failures
    Environmental incidents Expense management Financial difficulties
    Fire Fraud Human resources failures
    Inflation Interest rate change Labour relations failure
    Medical incidents Natural perils Negligence
    Procurement failures Project failures Quality failures
    Social change Strategy execution Technology failure

    Once the initial risk identification process has been completed, management should already start considering whether any of the
    risks are interconnected, i.e. is there any correlation between the identified risks?

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