Gwe 96@ Management of Risk: Guidance for Practitioners London : TSOTO blihed by TSO (The Seaoary Ofc) ae ata rom swomesoshop coi FO 82x29, Norwi NAB IGN Telephone orardGener angi 08706205522 ona meron coe ‘Texghone 067 403701 Tear Sree Blix 271 420 29 903 e451 Fac ons S02 01 (8706S Faxon tae S800 ‘TSO@Blachwol and other Accredited Agents Publae fr the Ofice of GovemmentConsmere under Kn fom the Cota of He Majesty's Stationery Ofc © Grown Copy 2007 Tis 2 Gown conrgh vale aed produc, reuse of which requires 9 Ck tse Lice for vale added materi sued by OPS Aeplications to ree, eproce or epubsh mae nh publication shouldbe set to OSL Information Poy Team, tClemerts House, 2-16 Cla, Norwich NS 190. TN (0160) 621000, Fae No 01603) 72300, Ems hsotcensingeabine fice 93 govuk, or cmp the apstcaon form onthe OPS! website hp /waw opstgvah/ck ule add cence homatindn r (FS in constaton wit fice of Goverment Cammarce (GC may then prea sue Added cence bese on stands terms aloe fo your particular requirements ncn payment em, The OGC logo ® fa Reismed Tade Mark ofthe Ceo Goverment Convers in th Unie Kingdom M.o.R® sa Reiser Tade Mark ofthe Ofer of GonramantConsnerctn the United Kegom and ster counties “The Swi ogo™ a Tae Mlk ofthe ce of Goverment Commerce Fs Eaton Gown copy 2002 Second Eton Gown cpyight 2007 Fest publihed 2007 Second impression with conection 207 Plated inte United Kr_Jom for The Staonery Oca| | iii Contents | | Foreword 3 Management of risk approach 7 31 troduction 1” Acknowledgements 3.2 Risk Management Policy 19 33. fibk Management Process Guide B 1 Introduction 1 a 34 isk Management Sate 24 1.1 Purpose of this guide 1 % 2 BS eka 30 | 12° Whats sk? 1 | 36 kselo 32 1.3. What is risk management? 1 2 VAMP iekmicnerert moor? 2.4, anagem of rk proces a | 1.5 Recent developments in the pe is management of risk 2 : 42 Idendly — Comert 38 1.6 Corporate governance and aura : 43. demtty entity the risks 2 1.7 Internal control and risk management 4 44 Assess — Estimate 45 1.8 — Where and when should risk 45 Assess ~ Evaluate 47 management be apie? 5 Be sk ie 1.9 OGC best practice guidance 5 ee a 1.10 How to use this guide 5 Pec ostase a 2 Management of risk principles 7 5 — Embedding and reviewing 2.1 Introduction 9 management of risk 55 22 Organisational contort 10 vances 23. Stakeholder involvement 10 52. Measuring the benefits and success 58 24 Organisational objectives 1 Be) soc ocems 59 26 — Reporting 12 selected if 2.7 Roles and responsibilities, 2 $5 Building and developing awareness oo 5.6 \dentifing and establishing Soest tice 2 a Opportunities for change 60 arly warning indicators 3 ge : 57 Modifying behaviour towards 210. Review eyce 8 (sk maragemene 6 2.11 Overcoming bariers to MLo_R 3 58 Roles and responsibities 61 Breairperie cikire 4 2.13 Continual improvement 4