Risk management, when implemented as part of the organizational culture, helps to reduce an organization’s exposure to imminent threats and to better prepare for the eventuality of their occurrence. Comprehensive risk management is performed in layers, with each layer emphasizing different aspects: project risks, operational risks, information security risks, business risk, etc. Integrated and efficient risk management is a challenge that is met through Enterprise Risk Management. Method’s system enables risk identification and tracking effectively, while minimizing the cost-benefit ratio. The system is based on a clear methodology according to the following principles:
Structured top-down analysis of the threats
Identification of critical processes that influence those threats or are influenced by them (vulnerable)
For business processes that have been identified and prioritized, contingency activities are defined, including implementation of business continuity plans (BCP) in an emergency
Establishment of risk management committees at various levels of the organization.
Definition of criteria for “flagging” risks that require urgent attention.
The outputs of risk management processes
- Risk assessment file, organized by layers, which include a description of the risk and a plan for reducing the risk for its occurrence and for mitigating it once it has, which also addresses contingent risks.
- An emergency staging plan, based on the risk assessment.
- An evaluation of risk management tools, using a structured methodology, offered as part of the MethodTools kit to match the tool optimally to the client’s requirements.
- Establishing the Risk Management Officer function to assist in the organization’s on-going risk management.
This system facilitates identification of key organizational risks - business, project, and operational risks – effectively and within a short time frame, while minimizing the cost-benefit ratio.