Professional standard: Insights and Context

Insights and Context

Risk management principles and practice

Definition: Understanding the principles and practice of risk management and the relevance and use of theories, processes and tools.

 

Leadership level

Senior level

Management level

Support level

Relevance of risk management

Advocates risk management as a central part of an organisation’s strategic management.

Educates an organisation on the probability, nature and scope of risks and opportunities and their likely impact on an organisation.

Advises on the selection and implementation of appropriate concepts and processes.

Explains different types of risks and possible responses to their treatment.

 

Tools and techniques

Ensures resilience is incorporated into organisational strategy.

 

Builds resilience across an organisation to manage current and future risks, opportunities and uncertainties.

Analyses the suitability of the use of risk management tools and techniques and makes recommendations.

Explains risk management standards, concepts, theories, processes and approaches to risk management.

Principles of risk management

Anticipates and influences risk management thinking at a national and/or international level.

Advises on the appropriateness of different approaches to managing risks.

Champions the benefits of risk management to stakeholders.

Explains the value of risk management.