On-ground activities involve Risk Assessment and action plan
In this step each unit of the organization should think over the various types of risk they face and make a collective list of all such risks. Risk managers should play an important role in this process by discussing the processes of each risk unit and helping the unit in understanding the risk angle.
Some techniques for identifying risks are:
- Group Discussions
- Analysing loss data
- Interviews and self assessment
- Questionnaires and Surveys
- SWOT analysis of each business type
- Workshops and trainings
Once we have a list of possible risk issues, next step is to anlayse all these risk issues according to there importance and severity. Risk analyses helps in developing the action plan and address important issues with priority.
Some tools for risk analysis are:
- Risk Rankings
- Risk Map with impact and likelihood
- Scenerio Analysis
- Earnings at risk
Take stock of existing Risk Management Activities
Once we have a list of risk ranked according to the priority, next step is to see the current risk management process. When we map risks on to existing risk management process, we can easily identify the gaps and develop an action plan according the urgency of the risk issues.
Develop an action plan
An action plan results as a residue of all above steps. Important things that should be covered in an action plan are:
- It should be divided in to various levels according to severity of the risk issues
- All uncovered risk issues should be taken care of at the earliest.
- Realistic timeline for closing all risk issues should be decided.
- Responsible person / department should be marked clearly.
- Review and monitoring system should be defined.
Progress of ERM action plan should be discussed in Risk Committee.