Risk Types
New or unforeseen risks that have not yet been fully understood or contemplated.
What is an emerging risk?
Eliminate risk altogether by not engaging with it in the first place.
5x5 probability and impact rating scale
Risk log to document all identified risks.
What is a risk register?
The amount of risk naturally present in a process, activity, or system before any controls or mitigation strategies are applied.
What is inherent risk?
Minimize the likelihood or impact of potential threats to reduce its severity or frequency.
What is risk reduction?
Risk is low, moderate, high or extreme.
What is risk assessment?
The amount and type of risk that an organization is willing to take in order to meet their strategic objectives.
What is risk appetite?
Risks arise due to failures in internal processes, systems, or human performance that can disrupt an organization's ability to function efficiently.
What is an operational risk?
What is risk transfer?
Speed to onset is immediate to greater than 5 years.
What is velocity?
Acts in an advisory capacity and is comprised of appointed delegates from each business unit; is responsible for promoting key risks.
What is ERM Steering Committee?
Stems from decisions or external changes that threaten an organization's long-term objectives.
What is strategic risks?
What is risk acceptance?
Threat to company is expected to increase, decrease, or remain uncertain.
What is risk outlook?
Understand the risks and are responsible for managing and the authority to oversee execution, monitoring and reporting of mitigation activities.
Who are risk owners?
Shareholder expectation, wildfire, geopolitical risk, and cybersecurity risks are examples of these risks.
What is enterprise risk?
Structured approach to identify, assess, manage, monitor, and report risks that could impact an organization's objectives.
What is enterprise risk management?
Predictive metrics that identify potential risks related to processes and events and considered early warning signs.
What is key risk indicator?
Consists of five categories: health, safety, and environment; operations; regulatory, legal, and compliance; finance; and strategic.
What is risk taxonomy?