Risk Management Blog - ClearRisk

How to Build a Risk Map

Posted by Rebecca Webb on Tue, Dec 19, 2017 @ 15:12 PM

What are risk maps, and how do you build one? A risk map is built by plotting the frequency of a risk on the y-axis of the chart and the severity on the x-axis. Frequency is how likely the risk is or how often you think it will occur; severity is how much of an impact it would have if it did happen. The higher a risk ranks for these qualities, the more threatening it is to your organization.

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Topics: Risk Management Process, risk mapping, Risk Map, business risk management, how to map risks, how to make risk maps

The Importance of Risk Mapping

Posted by Rebecca Webb on Tue, Dec 12, 2017 @ 15:12 PM

Why should your organization be using risk maps? Building a risk map brings valuable benefits. You will have a thorough understanding of your risk environment and how individual risks compare to one another. You can use this to strategically prioritize your risks and determine where to use your limited resources.

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Topics: Risk Management Process, risk mapping, Risk Map, business risk management

You've Identified Risks... Now What?

Posted by Rebecca Webb on Tue, Oct 10, 2017 @ 15:10 PM

You’ve successfully identified the risks that are facing your organization. (If you’re just joining us, check out our blog post from last week!) But now what? Risk management isn’t just about figuring out what risks there are: you have to know what to do about them and create a thorough plan for staying on top.

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Topics: Risk Management Process, frequency and severity of risk, risk monitoring, risk analysis, business risk management

6 Ways to Identify Risks in Your Organization

Posted by Rebecca Webb on Wed, Oct 4, 2017 @ 15:10 PM

Whether you realize it or not, you’re probably employing some kind of risk management in your organization already. As you conduct business, you develop procedures over time to make sure things don’t go wrong. Conducting a risk management plan is simply about formalizing that process and being able to devote your resources more effectively.

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Topics: Risk Management Process, identifying risk, how to identify risk, business risk management

Establishing an Enterprise Risk Management (ERM) Framework Enterprise

Posted by Krystal Hobbs on Tue, Dec 18, 2012 @ 08:12 AM

The following is a guest blog post is from RiskArticles.com.

Enterprise risk management (ERM) is an ongoing process designed to manage all risks within a firm. The Commission of Sponsoring Organizations of the Treadway Commission (COSO) defines ERM: 

“Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.”

It is important to establish an ERM Framework because it enables a firm to gain a clear view of its overall risk level. Discussed below are the steps that need to be taken to establish an ERM Framework, the potential benefits that can be expected, and the challenges that may be faced.

Process for establishing an ERM Framework

1. Common language around risk

The risk management function (or equivalent) must establish and educate the organization on common terminology regarding risk. A common definition of risk is – the potential for loss, or the diminished opportunity for gain, which can obstruct the achievement of the firm’s business objectives. Common terminology will facilitate communication across business units.

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Topics: Risk Management Process, ERM, enterprise risk management

Uncertainty Management: Measuring Risks and Opportunities

Posted by Krystal Hobbs on Tue, Nov 27, 2012 @ 08:11 AM

The following blog post is from a guest blogger, Amy Wilkins. Amy writes about business, finance & more at businessinsurance.org.

Take Time to Save Time

In Stephen King's book, "The Langoliers", time stands still for some unlucky airplane passengers desperately trying to stay one step ahead of hideous creatures that devour the past. That's exactly how it can feel trying to stay on top of your business workload. But the solution lies in the business paradox, "It takes time to save time." Taking time for the following tasks will keep you ahead of the game. 

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Topics: Risk Management Process, risk management, uncertainty management

9 Steps for Managing Risk in a Rapidly-Changing World

Posted by Craig Rowe on Tue, Oct 30, 2012 @ 08:10 AM

This has been an interesting week! I write this as I return home from a Sitkins broker networking event in Albuquerque, New Mexico. The conference was great, New Mexico was beautiful (my first visit), and the election and Hurricane Sandy were on everyone’s mind. It all made me think about keeping pace with changing risk.

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Topics: Risk Management Process, risk management planning, changing risk

The Risk Management Process – In 5 Steps

Posted by Craig Rowe on Fri, May 21, 2010 @ 10:05 AM

I have always been a firm believer that good risk management doesn’t have to be resource intensive, difficult for SMBs to undertake or insurance brokers to provide to their clients. With a little formalization, structure and a strong understanding of your organization, risk management planning can be rewarding.

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Topics: Risk Management Process, 5 steps to risk management, identifying risk, solution to risk, frequency and severity of risk