Enterprise Risk Assessments Part 6 - Risk Ratings

Next in the operational risk assessment series, building on the information gathered in the previous videos, here we consider the process of assigning risk ratings to key risks. This includes how to think about inherent and residual scores, why likelihood and impact mater, rating risk treatments, and considering the different types of risk treatments. We also now introduce risk types into the analysis, as a way to more fully understand risks scope and impact. Too many times risk ratings are arbitrarily assigned, without any real rationale or support, which does nothing but undermine the value of any risk assessment. Here we walk through analyzing the information obtained about a key risk, and using that information to justify appropriate risk ratings. We also breakdown why the different types of risk treatments matter within the overall assessment. For more information go to www.ermadvantage.com