Workshop: Risk Response

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Workshop Risk Response

• held by Catrin Lind Ebert

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Risk Response a question for management

• Having assessed relevant risks, management
  determines how it will respond.
• Risk responses fall within the following
  categories
• Avoidance
• Reduction
• Sharing
• acceptance

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Risk Response

• When management is considering the response
  management assesses the
• Effect on risk, likelihood and impact
• Costs and benefits
• The response should also bring residual risk
  within the organisations risk tolerance or
  acceptable level of risk. Management decides what
  levels are acceptable.

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Examples of Risk Responses

• Avoidance Deciding not to engage in activities
  giving rise to the risks
• Sharing Insuring significant unexpected loss,
  outsourcing
• Reduction or elimination Establishing effective
  operation processes
• Acceptance Accepting risk as already conforming
  to risk tolerances

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Risk Response

• Link identified objectives, events, risk
  assessments with the appropriate risk responses.
• It is important that the response brings the
  organisation within the stated risk tolerance or
  acceptable level of risk decide by management.

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Management decisions regarding

• Multiple risk response techniques which is
  optimal? Management vs. total control
• Costs and Benefits?
• How to manage the residual risk?
• Above issues are necessary to clarify before
  completing manuals that will guide you in the
  risk management process!