What is Risk monitoring?
Risk monitoring is the process which tracks and evaluates the levels of risk in an organisation. As well as monitoring the risk itself, the discipline tracks and evaluates the effectiveness of risk management strategies. The findings which are produced by risk monitoring processes can be used to help to create new strategies and update older strategies which may have proved to be ineffective.
What is Risk monitoring like?
Risk monitoring is like monitoring a star athlete’s performance. First the coach will watch the star athlete and make a note of their main strengths and weakness. They will also make a note of everything which has a positive or negative result on the athlete. This will help them to understand what works and what doesn’t. The coach can improve the athlete’s performance by encouraging the things that are shown to help, and stopping the things that don’t.
What is the purpose of Risk monitoring?
The purpose of risk monitoring is to keep track of the risks that occur and the effectiveness of the responses which are implemented by an organisation. Monitoring can help to ascertain whether proper policies were followed, whether new risks can now be identified or whether previous assumptions to do with these risks are still valid. Monitoring is vital because risk is not static.
What are the different types of Risk monitoring?
Voluntary – these risk monitoring strategies are not required by law, but are carried out by companies to help them to learn from events which have occurred in the past.
Obligatory – These risk monitoring strategies are required by law for some organisations, to ensure that proper risk monitoring and management methods are used.
Reassessment – Secondary or tertiary assessments of risk and risk management strategies.
Continual – Monitoring which is always ongoing.
What’s involved with performing Risk monitoring?
In order to perform risk monitoring, risk must be identified and evaluated. Once a risk action plan has been created, a timeline should also be created to ensure that check-ups are done in a timely fashion. In order to monitor the implementation of actions, tick boxes may be used, to show that each step of the process has been followed.
Notes should be kept at every stage of the implementation and action process, so that these can be analysed and referred to during the monitoring phase of the process.
Where does Risk monitoring fit into the risk management process?
The monitoring process usually takes place once the risk action plan has been implemented. As soon as the plan is in place, the monitoring phase may begin, to assess the effects that the plan has on the risks in question. However, monitoring may also take place even if no formal plan has been put into place yet, for instance monitoring the risk of a weather concern may occur whilst the risk management team discusses what their preferred course of action would be, should the weather risk actually occur.
How does Risk monitoring impact on managing organisational risk?
Risk monitoring is important because it helps to highlight whether strategies are effective or not. Risk monitoring can impact upon the management of organisational risk because it can lead to the identification of new risks. Strategies may also need to be changed or updated depending on the findings of risk monitoring strategies.
What terms are used in Risk monitoring?
Risk – A problem which may occur
Audit – A review of risks and the effectiveness of risk management strategies
Risk Management Strategy – a protocol which has been put in place to reduce or remove risk.
Effectiveness – The extent to which a risk management strategy has worked.
Where can I find more information about Risk monitoring?