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Risk management
Risk management

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4.2 Standardised risk approach

An organisation may choose to define some risks that are present in large parts of (or the entirety of) the organisation in a standardised way that can be applied consistently across the organisation. The benefits of doing this are:

  • Creation of a consistent view of the root causes and consequences.
  • Greater awareness of the presence of the risk in the organisation.
  • Opportunities to reduce silos and seek best practice across the organisation.
  • Reduced waste in documenting risks.
  • It ensures risks are owned in the right place.
  • Greater potential for common treatment and sharing of best practice.

There are, however, some potential pitfalls to be aware of:

  • Business areas may adopt the risk without considering if there are any different circumstances.
  • If the completeness of the risk isn’t identified then the weakness persists across the organisation.
  • Reduced ownership and accountability can occur.
  • Users can become ‘blinkered’ to only the outlined set of risks and may fail to identify other risks.