1 Risk Reasoning Ltd Risk Management Made Easy Mark Swabey & Stuart Gruszka If I were you, I wouldnt...

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1Risk Reasoning LtdRisk Management Made Easy

Mark Swabey & Stuart Gruszka

“If I were you, I wouldn’t start from here”

Getting Enterprise Risk Management into your organisation

Limerick

Dublin

The Typical Scenario

UK Combined CodeSarbanes-Oxley,

Turnbull,Basel 2

More Programme, Bid and project risk

assessments? How do I manage them all?

Next product NOW please.

Window of Opportunity…

Earlier completion date? Less testing, less

reliable, more comebacks later

If only they were in tune! Where are the priorities?

what is the best ROI?

Enterprise Risk Management

Too much emphasis on financial institutions and jargon

ERM is relevant to our whole business

as long as we are all included

and we define it in our own terms

The foundation stones

Management commitment

Involvement of key personnel

Empowerment

Training

Communication

Common framework

“We all agree to do this and do it this way”

Clear objective

Inclusiveness

A simple common process

Process

Quantify

Identify

Respond

Manage

Shared Vocabulary

Chance (Probability)

Impact

Other criteria

RiskAid – Other Criteria

What is important to your organisation

Reputation

Quality

Environmental Impact

Reporting up the ladder

Hierarchical risk assessments

Strategy

ProgrammeProject

Project

Operation

ProgrammeProject

Project

Operation

Strategy

ProgrammeProject

Project

ProgrammeProject

Project

Operation

Programme

Strategy

Project

Programme

Operation

Risk Management levels and relationships

Strategy

ProgrammeProject

Project

Operation

ProgrammeProject

Project

Operation

StrategyStrategy

ProgrammeProgrammeProjectProject

ProjectProject

OperationOperation

ProjectProject

OperationOperation

StrategyStrategy

ProjectProject

OperationOperation

ProgrammeProgramme

StrategyStrategy

ProjectProject

ProgrammeProgramme

OperationOperation

Risk Management levels and relationships

Reporting up the ladder

Including subsidiary assessments

Budgets and Plans

Consequential impact

Budgets and Consequential Impact

Uncertainty

Hierarchy of Risk (from Risk: Improving government’s capability to handle risk and uncertainty, ref 254205/1102/D16 UK Govt. Strategy Unit, Nov 2002)

Managing the assessments

Where do we keep the assessments?secure web or intranet server

How do we access them?via a browser

Who can see what?up to each assessment manager

Who did what, when and why?history and audit trail

What-if?scenarios

Uncertainty in RiskAid

Uncertainty in estimates

Uncertainty in chance of risk occurring

Uncertainty of cost of action

Uncertainty in an action solving the risk

See the effects of the action by switching it on and off

Is each action cost-effective?

Before proposed action

After proposed action

Integrating assessments & plans

Integrate the risk management action plan with the business or project plan.

Allocate resources to the risk management action plan.

Deal with risk management tasks as part of the business or project.

Instant Reports and Interactive DisplaysDisplays to help identify risks

Instant Reports and Interactive DisplaysDisplays to show the priority risks

Instant Reports and Interactive DisplaysDisplays to show the effects of actions

Instant Reports and Interactive Displays

Displays to show the risk register, action progress, responsibilities

The benefits of sharing

Devolving responsibility

Involvement by all

Encourages problem sharing and solving at each level

Clear responsibilities for each person

Better corporate understanding

Supported by common, integrated, collaborative tools

Benefits of web/intranet based support

Controlled access

Controlled remote access

Collaborative environment

High availability

Safe storage

Minimal IT maintenance effort needed

Easy to use

Conclusions

Common framework

Common vocabulary

Common process

Common, collaborative support environment

and we keep it simple and easy for all.

Enterprise Risk Management can be beneficial and show a positive return on investment if we have

1 Risk Reasoning Ltd Risk Management Made Easy Mark Swabey & Stuart Gruszka If I were you, I wouldnt...

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