Techniques used to support the process (Video)


Assess combined risk profile [MOR4]
Techniques used to support the process (Video)

In this Course, you’ll look at the fourth step in the MoR4 process cycle: Assess combined risk profile and its framework. You’ll learn about the purpose, objectives, theoretical activities, supporting documents, and the key roles in this process.


In this session, we're going to explore the techniques commonly used within the assess combined risk profile process. The very first technique you could use is the decision tree. This allows you to compare multiple options, each with a different risk profile, such as buying stocks or maybe saving money in the bank. You can then calculate the expected value which then helps you make an informed decision. 

Our next technique is called sensitivity analysis. This technique allows us to look at varying different inputs in a model to understand what happens on the other side of that model in terms of outcome. It also allows you to ask the question, 'what if?' which will help you understand the influence of inputs and what you need to manage them, how you do that appropriately. Our next technique is called probabilistic risk analysis. 

The name is not easy to say but the model should represent a real business situation. Risk modelling looks at a process where outcomes are explained by inputs. We then build a risk model so you can understand and analyse the effect of uncertainty on each of your objectives. Our next model is all around connectivity. The lack of interconnectivity is often said to be the cause of many business failures. 

Our risk connectivity analysis technique helps you to identify and assess the connections between the risks themselves. What it will also allow you to do is to explore the strength of the link but also the speed of impact, absolutely critical. And our final technique is called scenario analysis. This is an assessment technique that can help identify and measure potential occurrences of risk events. 

It enables you to reach agreement on the most reasonable scenarios that could happen, based on priority risk. Usually in real life we tend to take the top two risks. In the next step, you will have the opportunity to take a deeper dive into examples to support each technique before completing an activity. So, are you ready to get started?


Copyright: M_o_R®4 is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.


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