Corporate Risks

Corporate or business risks are the responsibility of the business directors or owners.  Every board meeting should have an agenda item which covers Governance and a sub item of the Business Risks.

Business risks are not static and will change and it is important that this is reflected in ther risk register, mitigating actions and changes or issues arising.  The following is an example of a risk register.  The main consideration with a risk register is the process undertaken and how risks are identified and reported.  Every business needs to demonstrate that risks are not just identified but managed which means mitigating actions.

BUSINESS RISKS

 

ID

IMPACT

PROBABILITY

SCORE

STATUS

IDENTIFIED

LAST REVIEWED

Poor Governance

0001

HIGH

MEDIUM

15

AMBER

01/01/2010

14/08/2019

Income/Revenue not forthcoming

0002

LOW - MEDIUM

LOW - MEDIUM

4

GREEN

01/01/2010

14/08/2019

Usage/Footfall smaller than expected

0003

           

External costs higher than expected

0004

           

Loss of Key Personnel

0005

           

Economic Downturn

0006

           

Not achieving high quality outcomes

0007

           

IT Failures

0008

           

Company archiving and storage

0009

           

Competitors

0010

           

Scoring Risks

It is important that risks are scored and tracked, demonstrating reduction in probability or impact through mitigating actions as agreed with the board of directors. 

  1.  - Low Probability or Impact
  2.  - Low/Medium Probability or Impact
  3.  - Medium Probability or Impact
  4.  - Medium/High Probability or Impact
  5.  - High Probability or Impact

Traffic Lights

Make the risk register more visual. Using Red, Amber and Green based on Impact multiplied by Probability.  

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