Founded by Boris Agranovich in 2010, the Global Risk Community (GRC) is the world’s leading community for Risk Managers. According to its official information, GRC is also the world’s first crowdsourced training platform for Risk Managers. GRC provides hundreds of materials and resources in its website, among which videos and very interesting podcasts. Today we are […]
Risk Register
3 Analysis Models All Risk Leaders Should Know
Risk management is an integral part of any business however most of the time it is simply seen as an add-on process that is often shoved into a silo to be kept away from core business functions. Now, this is no fault of business leadership as risk management has a historical reputation of being a […]
Risk Matrices: Pros, Cons and Alternatives
Risk matrices (or risk heat maps) have been in existent for some time and have become a contested topic in the risk management community in recent years. Once heralded as a sophisticated way to visually map risk pertinent to an organization’s revenue-producing activities or the overall industry in which they exist, these tools do have […]
Speaking in Risk Management Tongues
Abstract A critical step in building an effective risk management culture is understanding the organizational context and speaking a shared language. Driving the right response to risk events requires a common understanding of the potential consequences of outcomes and the criticality of timely response. Without a shared understanding of what is being communicated, risk response […]
How to Get The Most Out of a Risk Heatmap
Risk heatmaps are a common tool for many risk managers. A risk map is built by plotting the frequency of a risk on one axis of the chart and the severity on the other. Frequency is how likely the risk is or how often you think it will occur, while severity is how much of […]
It’s not about Risk Management
This is another excellent post by Norman Marks, renowned author of blog Governance, Risk Management and Audit. Among the several very current and valid considerations made by Norman in this post, illustrated by a meeting held between a CEO, CIO, CRO, EVP Sales and COO of a hypothetical firm, one sentence immediately stands out – and […]
How to Create a Risk Heatmap in Excel – Part 2
In the previous article (part 1), I’ve introduced the concept and possible applicability of a risk heat map, when capturing and managing operational risk. This article explains how to achieve the two heat maps described in part 1, including the data setup and necessary adjustments in Excel in order to plot all the risks (roughly 100) into an ineligible chart. […]
Residual Risk Scoring Matrix Example
While each firm has its own risks scoring guide, most firms will follow common guidelines, such as suggested by IOSCO on the Risk Identification and Assessment Methodologies for Securities Regulators. This article includes examples of risk scoring matrices used for Impact (inherent or gross risk – described in our section Risk Register), Likelihood (or probability), and the […]