BSBRSK501 Manage Risk

Organisational Risk

An organisation’s peformance is underpinned by effective risk management. Leaders are required to have a clear understanding of the principles of risk management in order to make effective decisions. Failure to adhere to an effective risk framework can lead to catastrophic results for the organisation and the individual. 

Organisational risk is:

‘…the potential for losses due to uncertainty. It is a term for risk at the top level of an organisation that includes material,strategic, reputational, regulatory, legal, security and operational risks.’ – (Spacey, 2015)

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Questions relating to the video:

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Q1. What am I trying to achieve? (Objective setting, understanding scope)

Q2. What might affect me? (Risk identification, uncertainties, future events)

Q3. Which from Q2 answers are most important? (Risk assessment, likelihood/impact)

Q4. What should we do about answers to Q3? (Mitigation, Prevention, Avoid/Reduce/Transfer/Accept)

Q5. Did Q4 answers work? (Confirm effectiveness)

Q6. What has changed? (Adapting to changes in the enterprise)