Fundamentals of Risk Management

Abbreviations and acronyms
435
abbreviation Term in full
reference
LILAC
Leadership, involvement, learning, accountability and 
communication
Table 24.3
LSE
London Stock Exchange
Chapter 28
MADE2
Mandatory, assurance, decision-making, effective and 
efficient core processes 
Table 5.2
OECD
Organization for Economic Cooperation and 
Development
Table 28.1
ORM
Operational risk management
Chapter 30
PACED
Proportionate, aligned, comprehensive, embedded and 
dynamic
Table 5.1
PCDD
Preventive, corrective, directive and detective
Table 16.1
PDCA
Plan–do–check–act
Chapter 9
PESTLE
Political, economic, social, technological, legal and 
ethical
Table 11.3
PIML
Plan, implement, measure and learn
Appendix C
PRAM
Project risk assessment and management
Table 31.1
RASP
Risk architecture, strategy and protocols
Chapter 21
RMIS
Risk management information system
Table 26.3
SEC
Securities and Exchange Commission
Chapter 36
SEE
Social, ethical and environmental
Chapter 20
SOX
Sarbanes–Oxley Act of 2002
Chapter 36
STOC
Strategy, tactics, operations and compliance
Chapter 3
SWOT
Strengths, weaknesses, opportunities and threats
Chapter 10

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APPenDIx B
Glossary of terms
t
he table below sets definitions and (as necessary) cross references for a total of 
101 risk management terms used in this book. Appendix A provides a list of the 
abbreviations and acronyms that are used in the book. It should be checked against 
the list below, as necessary. The reference column provides information on the location 
within the book where further information is provided, including reference to a
relevant figure or table when appropriate. The relationship between many of the 
acronyms is shown in the implementation guide set out in Appendix C.
There is an international standard related to risk management vocabulary and 
definitions. This is ISO/IEC Guide 73 ‘Risk Management: Vocabulary – Guidelines 
for Use in Standards’. Where appropriate and to the extent that is possible, the defini-
tions used in Guide 73 are referenced in this book.
However, it is not possible to use a unified terminology because risk managers in 
different disciplines and business sectors use their own words and definitions. Indeed, 
the various risk management standards produced around the world use different 
terminology and definitions. ISO Guide 73 attempts to provide a unified language of 
risk, but it may take some time for these definitions to be universally adopted.