|
That has an acceptable value without generating major problems (economic, criminal, reputational). Share it with third parties (contracting insurance) when the impact cannot be assumed by the company alone. An optimal risk level would be the risk level desired by the organization, which would normally be very low (the one you would write in a letter to the Three Wise Men), but which is not always easily achievable or at least at a reasonable cost. Therefore, every organization must determine the maximum level at which it is willing to operate, and that value is called tolerable risk or "risk appetite." Why risk management is important Risk management itself and the determination of the organization's “risk appetite” generates the following improvements.
Provides very important information for decision making Reduce uncertainty Improves consistency between governance mechanisms and decision making Improves organizational effectiveness (through continuous improvement) Focus or prioritize areas in the organization Prioritize UK Mobile Database resource management and expense control How to define the level of "risk appetite" of each organization One of the aspects to consider for its determination is the thermology to be used in the risk assessment. Using overly technical terminology in the analysis can be counterproductive by limiting the collaboration of the uninitiated, which on the other hand is necessary to have a complete vision of the organization. When assessing the state in relation to the risk appetite that has been defined, it is recommended to use the value of the "residual risk", which is the value obtained from the "inherent risk" (1) after applying the mitigation provided.

By its controls (which are those that mitigate risks). It is advisable to periodically review the effectiveness of this mitigation provided by the controls to confirm that there are no notable changes. We can call this process a measure of the effectiveness of the controls . How the effectiveness of controls should be measured This may be a more operational aspect and, therefore, seen from the traditional compliance areas more linked to the legal world, that is, more oriented to the “C” of the GRC triangle, which are more accustomed to the traditional “check list”. with the binomial YES/NO. As the “G” for corporate governance and the “R” for risks of the GRC provide a complementary vision to the legal part of aspects that have a "gray range", the measure should be more oriented towards the capture and evaluation of numerical data to provide a valid assessment of the effectiveness of its controls, from which its evolution can also be seen.
|
|