Does Risk Assessment assist decision making in potential Strategic Objectives?

All Strategic Objectives face the question of risk / reward - "what and how significant are the key uncertainties and should we go ahead"?

Risk Management can add value to this process, using a structured approach to highlight key uncertainties and required actions, before the decision to go ahead, and with subsequent updates as needed.

For each potential Strategic Objective:

• determine deliverables, scope, methods, timelines and metrics

• identify the key risks before committing (these are the greatest uncertainties to successful delivery - eg execution risks and resource and capability risks)

• determine the overall risk (is this a high risk objective - significant uncertainty)

• make the decision to proceed on a risk reward basis (with agreed risk acceptance)

For each approved Strategic Objective:

• periodically update the risk assessment (as the environment changes, the company operations change and the delivery of the objective progresses).

• confirm continued operation within risk appetite

• take actions where needed

Ethidex - ASSESS can help with this process by capturing potential strategic objectives and combining them with related risks and controls to support a risk assessment (and updates). Please reach out if you want to know more.