Register your risk event and assess whether a mitigation action is needed.
A risk event is the materialization of a risk that negatively impacts your ability to meet your business objectives. Risk events can result from factors internal to your business model such as human errors, processing errors, and system failures. It can also result from external factors beyond your control such as changes in customer behavior, the economic, legal, or political environment. Have a plan in place to contain, recover from, remediate, and learn from the event regardless of the cause. Logging these events in a register can also be useful for future risk identification and trend analysis purposes.
The Risk Event Register includes a registration form and dropbox selections to provide a user-friendly method to register your risk events. All dropbox entries can be customized for your organization.
The Risk Event Register consists of the following data entry fields:
|Number||System generated sequential registration number.|
|Today’s Date||System generated date.|
|Detection Date||The date the risk event was detected.|
|Event Date||The date the risk event occurred.|
|Event Type||Customizable dropbox selection of the Level 1 category types of risk events.|
|Event Classification||Customizable dropbox selection of the applicable types of risk classifications.|
|Event Description||Provide a brief description of what went wrong.|
|Event Cause||Customizable dropbox selection of the applicable types of risk causes.|
|Cause Type||Customizable dropbox selection of the applicable cause types.|
|Event Owner||The name of the person responsible for the risk event.|
|Impacted Area||The area, department, function, or activity in your company affected by the risk event.|
|Registered By||System generated based on credential of the user logged into Microsoft Excel.|
|Approved By||The person responsible for approving the registration entry fields.|
|Gross Monetary Loss||The maximum monetary amount lost before any recoveries.|
|Recovery Amount||The total amount recovered from the event.|
|Net Monetary Loss||System calculated amount based on Gross Monetary Loss minus Recovery Amount.|
|Net Gain||The amount inadvertently gained from the risk event.|
|Monetary Impact Level||Customizable dropbox selection of the risk impact levels by monetary value.|
|Regulatory Impact Level||Customizable dropbox selection of the risk impact levels by regulatory impact.|
|Reputation Impact Level||Customizable dropbox selection of the risk impact levels based on stakeholder impact.|
|Financial Risk Impact Level||Customizable dropbox selection of the risk impact levels limit breach considerations.|
|Risk Likelihood||Customizable dropbox selection of the risk likelihood occurrence states.|
|Risk Level||Customizable dropbox selection of the risk classification levels.|
|Risk Category 2||Customizable dropbox selection of the applicable Level 2 category risk types.|
|Risk Appetite||Customizable dropbox selection of the risk appetite classification levels.|
|Mitigation Conclusion||System calculated decision based on the comparison of the Risk Level and Risk Appetite.|
|Control Failure Type||Customizable dropbox selection of the applicable types of control failures.|
|Control Failure Description||Brief description of the control failure or limit breach.|
|Control Owner||The name of the person responsible for implementing the control.|
This blog post explains how a risk event register plays an important role in determining your risk profile: Do You Know Your Risk Profile?
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