Fundamentals of Risk Management

 304
Figure 25.2
Risk and uncertainty
 307
Figure 25.3
Risk appetite, exposure and capacity (vulnerable)
 309
Figure 28.1
LSE corporate governance framework
 342
Figure 28.2
Corporate governance in a government agency
 345
Figure 29.1
Importance of core processes
 355
Figure 31.1
Risk matrix to represent project risks
 373
Figure 31.2
Bow-tie to represent project risks
 374
Figure 31.3
Project lifecycle
 375
Figure 31.4
Decreasing uncertainty during the project
 376
Figure 33.1
Criteria of Control (CoCo) framework
 396
Figure 35.1
Role of internal audit in ERM
 413
Figure 35.2
Governance, risk and compliance
 417
Figure 36.1
Selected UK security threats
 431

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LIst oF tABLes
Table 1.1
Definitions of risk
 16
Table 1.2
Risk description
 19
Table 3.1
Risks associated with owning a car
 37
Table 3.2
Categories of operational disruption
 42
Table 4.1
Definitions of risk management
 46
Table 4.2
Importance of risk management
 47
Table 4.3
8Rs and 4Ts of (hazard) risk management
 51
Table 5.1
Principles of risk management
 58
Table 5.2
Risk management objectives
 59
Table 6.1
Risk management standards
 72
Table 6.2
COSO ERM framework
 77
Table 7.1
Format for a basic risk register
 89
Table 7.2
Risk register for a sports club
 90
Table 7.3
Risk register for a hospital
 91
Table 7.4
Project risk register
 93
Table 7.5
Risk register attached to a business plan
 94
Table 8.1
Features of an enterprise-wide approach
 97
Table 8.2
Definitions of enterprise risk management
 98
Table 8.3
Benefits of enterprise risk management
 100
Table 9.1
Summary of King III risk requirements
 111
Table 10.1
Top-down risk assessment
 121
Table 10.2
Bottom-up risk assessment
 122
Table 10.3
Techniques for risk assessment
 123
Table 10.4
Advantages and disadvantages of RA techniques
 123
Table 10.5
Definitions of likelihood
 125
Table 10.6
Definitions of impact
 126
Table 11.1
Risk classification systems
 135
Table 11.2
Attributes of the FIRM risk scorecard
 136
Table 11.3
PESTLE classification system
 139
Table 11.4
Personal issues grid
 141
Table 12.1
Benchmark tests for risk significance
 147
Table 13.1
Generic key dependencies
 155
Table 14.1
Defining the upside of risk
 160
Table 14.2
Riskiness index
 164
Table 15.1
Description of the 4Ts of hazard response
 176
Table 15.2
Key dependencies and significant risks