The key to writing a good risk statement is to have a basic understanding of the components of risk and their interrelationships. Understanding the key terms related to risk and their definitions, as well as the business and its objectives, will result in a more impactful articulation of risk. It describes how well-structured risk statements help all stakeholders to better understand program risks and to improve systems engineering planning and communications. The information systems auditing and control professional must create concise, information-rich risk statements relevant to the situation and audience, to ensure that risk statements have an impact and support effective risk management.
A corporate risk management policy helps coordinate the efforts of the entire organization in this regard. Get expert advice on project management straight to your inbox by subscribing to The Project Management Guide blog. In addition, risk factors must be clearly and concisely stated to support effective risk management. The first risk statement would be more important for those responsible for managing the security of customers' information systems, since it tells them exactly what should be controlled (the system change process).
The risks addressed are all those that could interfere with the WHO's global mission, from financial damage to the group to interference with its ability to create teams to address global health problems. The 14-page risk management policy statement adopted by ALS Global, a laboratory and certification services company, offers some good ideas about the comprehensive nature of risk policies. The DoD RIO Guide provides additional information on the risk and nature of potential risk factors as the program progresses through the phases of the life cycle. The Risk, Problem and Opportunity Management Guide (DoD RIO) recently published by the Department of Defense analyzes the importance of communicating risks through the use of structured risk statements.
Beyond the financial sphere, a number of regulations apply to many areas, such as the environmental management of toxic waste, worker safety and wetland conservation. The project manager can then decide how important the risk is and who should know about it and help mitigate it. While a risk policy statement usually focuses on a company's financial risks, the type of risks addressed can vary widely and include the risk of injuries, accidents, and legal liability. For example, the possibility of data leaks due to faulty changes in the customer's account management system is a risk.
For example, a negligible reputational risk involves an isolated complaint about the company that does not receive media attention, while a catastrophic risk includes widespread and sustained media coverage of a problem that throws the company from a negative perspective. A significant part of corporate risk management activity focuses on following the rules established not only by government regulations, but also by industry associations and internal company policies.