Fundamentals of Risk Management

Core business processes
225
events will represent risks that could materialize. The other component of this business 
development model is the reporting of the results of operations.
Actions and events can be good, bad or routine, and enable the organization to 
monitor what progress is being made against the business strategy, tactics, operations 
and compliance. These actions and events impact the organization and its ability to 
sustain effective, efficient and compliant business operations and core processes. 
Although compliance core processes are not specifically mentioned, they represent 
the means by which the organization will ensure that it fulfills its legal and contractual 
obligations. Compliance core processes should underpin all the activities of the
organization and will be similar in nature to operational core processes.
Identification of strategy will require an approach based on opportunity man-
agement. Delivery of tactics, often by way of projects, will require attention to
uncertainties and management of control risks will be important. Delivery of effec-
tive and efficient operations will require particular attention to the successful man-
agement of hazard risks.
Figure 
19.1
 
Business development model
(where the organization wants to be)
• Effective and efficient strategy
• Review strategic options
• Strategic plan
1. Strategy
(how the organization will get there)
• Effective and efficient processes
• Programme design and planning
• Project management
3. Tactics
(where the organization is now)
• Effective and efficient operations
• No disruption or failure
• Annual budget and business objectives
2. Operations
(what happens along the way)
4. Events
(how well the organization is doing)
Support
or deliver