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. […]
Governance
INFOGRAPHIC: Trump Presidency and US Foreign Policy Risks
Many voices have been expressing their concerns on the US president-elect Donald Trump. Millions of tweets, blog posts, written press articles, hours of TV debates in different channels… One thing is for sure: there is great uncertainty in the next four years. The key aspect now is to watch how Donald Trump unfolds his policies […]
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 […]
How to Create a Risk Heatmap in Excel – Part 1
Risk heat maps are commonly used in operational risk management and are specially useful to represent a firm’s risks in a visual manner, highlighting the ones that need to be managed more closely. When assessing operational risk, the risk manager will typically use a spreadsheet to record its firm’s key risks and rate the impact and likelihood (or probability) assessment scores for […]
10 Must Have Skills to be a Successful Risk Manager
As regulatory requirements shift and evolve, so must Risk and Compliance professionals keep improving and grow their skills and knowledge. Keeping up with regulation and ongoing wider regulatory programmes, as well as covering the day to day operations at financial firms or banks, requires that Risk Managers are constantly learning, adapting and systematically moving their […]
INFOGRAPHIC: Banks Risk Management Survey 2016 by EY
Banks have taken serious steps post-financial crisis to improve and even totally overhaul their Risk Management processes and systems . This has been an enormous challenge for banks as the industry regulation has increased exponentially post-financial crisis with capital and liquidity requirements also increasing. At the same time, CEO’s must keep their focus on increasing banking revenues to 10-15% […]
EBOOK: Enterprise Risk Management
Enterprise Risk Management (ERM) is a method which provides a given firm to have an overview of all its key risks and associated information, therefore enabling the board and management team to make balanced, cross region wide risk decisions. Risks are Opportunities Earlier, so it seems, the world was less dangerous. Today, more and more enterprises with […]
VIDEO: Risk Management For Project Leaders Webinar
This is another useful webinar by Simplilearn, focusing on the two main dimensions of Risk (probability and impact) as well as the 9 step Risk Management process and other relevant aspects such why Risk Leadership is so important, most common mistakes, root causes identification, among other important points. This is a actually a very thorough […]
