Risk Management Task Integration

May 3, 2012 Posted by Peter Moore No Comments

Many organisations struggle to maintain momentum following risk assessment workshops.  In particular, future actions and developing and implementing risk treatment plans identified during such workshops.  Further, many risk management activities including reviews of risk management frameworks, criteria, systems and processes do not get carried out for the same reasons: lack of prioritization of business tasks; lack of commitment to the tasks; lack of adequate risk management resources; lack of planning.  This article explores this issue and provides a mechanism of integrating risk management activities into the day-to-day business operations and activities.  This mechanism is the Risk Management Task Integration Model (RMTI).

In businesses where risk management maturity is less advanced (immature, early starter or even progressive), risk management activities are often viewed as “extra” tasks to be undertaken by the business and its management.  This often results in a loss of momentum in following up actions after risk assessment or risk review workshops.  Frequently managers view risk management activities as “tedious” and in the worst case, a “tick the box” mentality may prevail.  In such organisations there is often resistance and push-back from senior managers in completing risk management activities and tasks.

In more progressive businesses (semi-mature or mature) where there is commitment from the board and executive to risk management and it’s integration into the business, such issues are less prevalent (but not always!).  These issues are outlined in the opening paragraph.  The Risk Management Task Integration Model (RMTI) provides a mechanism for: identifying existing business tasks and activities; identifying new “risk” tasks (such as the development of risk treatment plans); determining what is important and what is urgent (tasks to be completed in the business); identifying any additional resources which may be required to undertake the required risk management activities, and a re-prioritisation of tasks and allocation of resources.

 Risk Management Task Integration Model (RMTI)

The Risk Management Task Integration Model is an eight step process to assist in integrating risk management tasks and activities into the business.

•  - Conduct risk assessments and risk analyses in the business.
•  - Develop Risk Treatment Plans.
•  - Establish the organization’s  Risk Tolerance & Risk Appetite using.
•  - Identify resources required to complete risk management activities.
•  - Carry out an analysis on the company’s existing work schedule.
•  - Conduct a “gap analysis” on the additional tasks required to undertake the risk activities .
•  - Make decisions regarding what tasks are important and what tasks are urgent.  This establishes priorities.
•  - Identify whether additional resources are required to complete the risk management tasks.
•  - Integrate risk treatment actions and risk management activities into the business.
•  - Finally, monitor the entire process and mechanism, review and update (if required). 

The Risk Management Task Integration Model (RTAM) can be used in a broader context than managing the resourcing and completion of risk treatment actions and risk management reviews.  It can be applied to risk management training, education and awareness programmes as well as employee induction.  It can also be applied to the development of the organisation’s Risk Management Plan. Risk Point has also developed an implementation process for RMTI. Post your request for the implementation model and we will email it through.

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