COURSE OVERVIEW:

Risk recognition and risk rating together form the risk assessment component of the risk management process. Risk assessment involves the recognition of risks and the rating of them to determine the significant risks facing the organisation, project or strategy. It is defined as the overall process of risk identification, risk analysis and risk evaluation. Because the risk management input into strategy focuses on improved decision making, risk assessment is the main risk management input into strategy formulation.

Risks may be attached to corporate objectives, stakeholder expectations, core processes and key dependencies. Whichever of these features is selected as the starting point, risk assessment can be undertaken. The purpose of risk assessment is to identify the significant risks that could impact the selected feature.

Although risk assessment is vitally important, it is only useful if the conclusions of the assessment are used to inform decisions and/or to identify the appropriate risk responses for the type of risk under consideration. It should be considered as the starting point of the risk management process and it is certainly not an end in itself.

An important feature of undertaking a risk assessment is to decide whether the identified risk is going to be evaluated at the inherent level or at the current (or residual) level. Assessment of inherent risk is undertaken without taking account of the controls that are currently in place. The benefit of undertaking assessment of inherent risk is that the difference between the current level and the inherent level can be identified.

Health and safety practitioners, for example, prefer to undertake risk assessment with the current controls in place. This can be a simpler process, although it relies on the assumption that the current controls will always work to the assumed effectiveness.

This course is primarily concerned with business and commercial risk assessments. This course explains the importance of risk assessment as a fundamental requirement of successful risk management. In addition, risk classification and risk analysis tools and techniques are considered in detail.

The first part provides an overview on risk assessment. Then discusses the risk assessment considerations. Then examines the risk classification systems and provides risk analysis and classification techniques. The second part discusses risk likelihood and impact and loss control. Then defines the upside of risk. Finally, explains business continuity planning.

LEARNING OUTCOMES:

By the end of this course, you will be able to understand:

• The importance of risk assessment as a critically important stage in the risk management process
• Risk assessment considerations
• The approaches to risk assessment
• The risk assessment techniques
• The importance of the risk matrix
• How to use a risk matrix to indicate the dominant risk response in each quadrant?
• How to use a risk matrix to indicate the risk appetite of an organisation and whether the organisation is risk averse or risk aggressive?
• The purpose of risk identification
• The key features of the best-established systems
• Risk perception and risk appetite
• The risk classification systems and their importance
• What are the short, medium and long-term risks?
• The purpose of risk classification systems
• The FIRM risk scorecard
• The PESTLE risk classification system
• The advantages and disadvantages of a PESTLE analysis
• Hazard, control and opportunity risks
• Risk likelihood and impact
• The inherent and current level of risk
• The 4Ts of risk response
• Risk significance and risk capacity
• Risk likelihood and risk magnitude
• How to use the loss-control actions to reduce the impact of an event that has a large magnitude before mitigation?
• The hazard risks
• Loss prevention, damage limitation and cost containment
• The main components of loss control as loss prevention, damage limitation and cost containment
• Product recall risk management
• The upside of risk
• The riskiness index
• The practical application of alternative approaches for strategy, projects and operations
• Opportunity management
• Business continuity planning
• The importance of business continuity planning BCP and disaster recovery planning DRP
• Business continuity standards
• The successful BCP and DRP
• The business impact analysis (BIA)
• The approach taken during a business impact analysis
• The purposes of the business impact analysis
• How the business impact analysis supports business continuity planning?
• The key features of a business continuity plan

COURSE DURATION:

The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.

COURSE REQUIREMENTS:

You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.

COURSE DELIVERY:

Purchase and download course content.

ASSESSMENT:

A simple 10-question true or false quiz with Unlimited Submission Attempts.

CERTIFICATION:

Upon course completion, you will receive a customised digital “Certificate of Completion”.