Session 2: Establishing the context

Introduction

In Session 1 you started learning about risk management. It defined what is meant by ‘risk’, and discussed why managing risk is important, what happens when risk is well managed and what can happen when it isn’t. You learned about risk in everyday life and how different people choose to take different levels of risk.

In this session you will build on last session’s ideas by exploring ‘Enterprise Risk Management’ and start to think about applying risk management in an organisation. You will determine prerequisites for risk management, explore first steps, and focus on how to set a scope and framework for your risk management activities.

By the end of this session, you should be able to:

• explain what Enterprise Risk Management is
• understand risk appetite
• describe the components of a risk management framework
• produce a document that sets out the scope and context for activity (a Risk Management Plan, or RMP).

Now begin Session 2.