Consider the following statement:
‘Risk managers should mainly focus on the consequences of an event rather than its likelihood as these consequences determine the impact on the business.’
– Examine the interaction between likelihood and consequences and develop an argument either for or against the statement;
– Your commentary should contain a critical argument with a brief introduction, stating where you stand and how you argue your case and then finish with a conclusion.
– Include an analysis of the role of a business risk manager offer some conclusions as to how prominent the role of the business risk manager should be within the wider management of the business, i.e. when compared with other management functions such as strategy, governance, product development, marketing, finance, operations, etc.
– With the support of academic literature, justify how you reached your conclusions
Part 2 Workplace Application (17.5 marks)
Part 1 (7.5 marks)
Compare and contrast the risk mitigation strategies of retain, transfer or avoid risk. Your discussion should include the key considerations a risk manager should take into account when making such decisions (e.g. cost versus benefit framework). Use your chosen work case problem to generate a working example for each of the three strategies. Recommend the strongest strategy for your chosen work case problem and justify your decision.
Part 2 (10 marks)
Technology is rapidly changing and improving how we can profile risk. Increasingly this is allowing more sophisticated modelling of risk. The Bowtie approach is set to replace some older methods. This means increasingly software applications such as BowtieXP are becoming available to expedite this process. Hence, your boss has asked you to trial the program and give a report on the program in which you offer a recommendation as to go ahead and implement the program
Provide a reflective summary of your own perception of risk and how your understanding of risk, risk analysis, and risk management has developed over the session. Identify what you consider to be the three critical components of risk and risk management.