Fundamentals of Risk Management

Glossary of terms
443
Term
Definition
reference
Risk management policy
Statement of the overall intentions and 
direction of the organization related to risk 
management – often a one-page document
Chapter 21
Risk management process
Activities that deliver management and 
control of risks – defined in this book as 
recognition, rating, ranking, responding, 
resourcing controls, reaction planning, 
reporting and review (8Rs)
Table 4.3
Risk management standard Guidance that provides a description of the 
risk management process, together with 
advice on establishing a suitable risk 
management framework
Chapter 6
Risk map
See ‘Risk matrix’
Figure 1.1
Risk matrix
Presentation of risk information on a grid or 
graph, also referred to as a risk map or heat 
map and often used to illustrate information 
from the risk register
Figure 1.1
Risk maturity model
Structure for determining the level to
which risk management is embedded
within an organization (4Ns)
Table 24.4
Risk profile
See ‘Risk register’
Chapter 7
Risk ranking
Stage in the risk assessment process that 
analyses the likelihood and impact of a risk 
– referred to in Guide 73 as the level of risk
Chapter 10
Risk rating
Stage in the risk assessment process that 
evaluates the risk with reference to the risk 
appetite or the established risk criteria, to 
help select the appropriate risk response
Chapter 10
Risk recognition
Early stage in the risk management 
process, which involves the identification of 
all of the risks faced by the organization
Chapter 10
Risk register
Record of the significant risks faced by an 
organization, the controls currently in place, 
additional controls that are required and 
responsibility for control activities
Chapter 7

---