LEAD Reference Content:Best Practice around Risk Ontology - Revision history

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@@ Line 569: / Line 569: @@
 <em>For further reading, please see the attached pdf document</em>
-'''Document:''' [[Media:Best Practice around Risk Management.pdf|Download the 'Best Practice around Risk Management' document.]]
+'''Document:''' [[Media:Best Practice of how to set up a Risk Ontology.pdf|Download the 'Best Practice around Risk Management' document.]]
 [[Category: Best Practices]]
 [[Category: Risk]]

@@ Line 557: / Line 557: @@
-'''Document:''' [[Media:Best Practice around Risk Management.pdf|Download the 'Best Practice around Risk Management' document.]]
+=== Lesson #5: Having a common terminology around risk matters ===
 [[Category: Best Practices]]
 [[Category: Risk]]

← Older revision		Revision as of 16:29, 19 January 2017
Line 549:		Line 549:

	[[File:Best Practice of how to set up a Risk Ontology - Table 3.png\|thumb\|800px\|Table 3: Leading practices of Risk Management.]]		[[File:Best Practice of how to set up a Risk Ontology - Table 3.png\|thumb\|800px\|Table 3: Leading practices of Risk Management.]]
		+
		+
		+	It however has to be noted that the flow of how the organizations applied it within their various constructs varied. The most common risk management pattern identified is the one shown in the matrix diagram 1.
		+
		+
		+	[[File:Best Practice of how to set up a Risk Ontology - Matrix Diagram 1.png\|thumb\|800px\|Matrix Diagram 1: The most common risk management pattern.]]

@@ Line 504: / Line 504: @@
 === Lesson #4: leading practices around Risk concepts ===
 The outperforming organizations applying risk management aspects, had the following 5 components:
-#Risk Measure
+#'''Risk Measure'''
 ##Historical Predictors
 ##Statistical Measures
@@ Line 513: / Line 513: @@
 ##Impact Rating
 ##Damage Assessment
-#Risk Monitor
+#'''Risk Monitor'''
 ##Risk Identification
 ##Risk Assessment
@@ Line 521: / Line 521: @@
 ##Risk Quantification
 ##Monitoring Risk Activities
-#Risk Reporting
+#'''Risk Reporting'''
 ##Risk Scorecard
 ##Vulnerability report
@@ Line 530: / Line 530: @@
 ##Activity Report
 ##Risk Status report
-#Risk Rule
+#'''Risk Rule'''
 ##Risk Programs
 ##Risk Policies
@@ Line 539: / Line 539: @@
 ##Risk Guidelines
 ##Risk Techniques
-#Risk Compliance
+#'''Risk Compliance'''
 ##Risk Compliance evaluation
 ##Risk Compliance audit

← Older revision		Revision as of 16:26, 19 January 2017
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	[[File:Best Practice of how to set up a Risk Ontology - Figure 1.png\|thumb\|800px\|Figure 1: Organizations with a risk strategy are more likely to meet or exceed their business goals and objectives.]]		[[File:Best Practice of how to set up a Risk Ontology - Figure 1.png\|thumb\|800px\|Figure 1: Organizations with a risk strategy are more likely to meet or exceed their business goals and objectives.]]
		+
		+
		+	=== Lesson #2: There is a connection between Risk and organizations Business Model ===
		+	Our research revealed that actual risk that has manifested itself always impacts one of the following business modelling domains:
		+	*Service Model
		+	*Value Model
		+	*Revenue Model
		+	*Cost Model
		+	*Operating Model
		+	*Performance Model
		+
		+	The studies also revealed that organizations re-active risk counter initiatives are mostly centered on operating model, the cost model and the performance model. While the pro-active threat analysis of possible risk happening, was mostly centered on value model, revenue model and service model.
		+
		+
		+	=== Lesson #3: Having clear defined Risk Management concepts is important ===
		+	Our study highlights the importance of having a clear defined risk management concept. As a matter of fact, the same organizations that had the risk strategy discussed in lesson # 1, are those that had a clear defined risk management concept. As part of this research, we compared these organizations performance over a 10-year period. We sorted the organizations with publicly available financial information and compared revenue and profit track records with the averages for those in the same industry. When comparing it, the organizations with the risk strategy and the risk management concepts where the differences between the responses of financial outperformers and those of underperformers clear. Organizations that performed above average on the particular financial benchmark were those with the risk strategy and the risk management concepts.
		+
		+
		+	=== Lesson #4: leading practices around Risk concepts ===
		+	The outperforming organizations applying risk management aspects, had the following 5 components:
		+	#Risk Measure
		+	##Historical Predictors
		+	##Statistical Measures
		+	##Vulnerability Analysis
		+	##Volatility Measure
		+	##Risk Benchmark
		+	##Severity Measure
		+	##Impact Rating
		+	##Damage Assessment
		+	#Risk Monitor
		+	##Risk Identification
		+	##Risk Assessment
		+	##Risk Evaluation
		+	##Risk determination
		+	##Risk Qualification
		+	##Risk Quantification
		+	##Monitoring Risk Activities
		+	#Risk Reporting
		+	##Risk Scorecard
		+	##Vulnerability report
		+	##Impact Report
		+	##Intelligence Report
		+	##Arrest Report
		+	##Suspicious Event Report
		+	##Activity Report
		+	##Risk Status report
		+	#Risk Rule
		+	##Risk Programs
		+	##Risk Policies
		+	##Risk Directives
		+	##Risk Standards
		+	##Risk Procedures
		+	##Risk Advice
		+	##Risk Guidelines
		+	##Risk Techniques
		+	#Risk Compliance
		+	##Risk Compliance evaluation
		+	##Risk Compliance audit
		+	##Risk Contract
		+	##Risk Governance
		+
		+	The 5 components were applied around risk analysis and risk control as shown in table 3.
		+
		+
		+	[[File:Best Practice of how to set up a Risk Ontology - Table 3.png\|thumb\|800px\|Table 3: Leading practices of Risk Management.]]

← Older revision		Revision as of 16:16, 19 January 2017
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		+	=== Lesson #1: Risk Strategy Matters ===
		+	Our study highlights the importance of having a risk strategy to achieve the organizational objectives and goals. 93 percent of executives with a defined risk strategy view their performance as meeting or exceeding their expectations, while just 50 percent of those without a risk strategy say the same (Figure 1). Refining the risk strategy was three times more likely to be driven by near-term events (financial risk, current compliance issues, direct vulnerabilities or competitor moves) than by long-term factors (long-term economic outlook or the imminent risk of the end of a product life-cycle etc.).


−		+	[[File:Best Practice of how to set up a Risk Ontology - Figure 1.png\|thumb\|800px\|Figure 1: Organizations with a risk strategy are more likely to meet or exceed their business goals and objectives.]]
−	[[File:Best-Practice~~-around-~~Risk~~-Management--~~-Figure-1.png\|thumb\|800px\|Figure 1: ~~Risk Management~~ and ~~the Natural Cocoon Phase~~.]]	+

@@ Line 337: / Line 337: @@
 | style="text-align: center;" | 2003
 |-
+| Mapping vulnerability: disasters, development, and people
+| Greg Bankoff, Georg Frerks, and Dorothea Hilhorst
-| style="text-align: center;" |
+| style="text-align: center;" | 2004
 |-
+| Dread Risk, September 11, and Fatal Traffic Accidents
+| Gerd Gigerenzer
-| style="text-align: center;" |
+| style="text-align: center;" | 2004
 |-
+| When All Else Fails: Government as the Ultimate Risk Manager
+| David A. Moss
-| style="text-align: center;" |
+| style="text-align: center;" | 2004
 |-
+| Defining Risk, Financial Analysts Journal, 60 (6), 19–25. A paper exploring the foundations of risk. (PDF file).
+| Holton, Glyn A.
-| style="text-align: center;" |
+| style="text-align: center;" | 2004
 |-
+| Risk and Financial Management: Mathematical and Computational Methods
+| Charles, Tapiero
-| style="text-align: center;" |
+| style="text-align: center;" | 2004
 |-
+| Advanced Financial Risk Management: Tools and Techniques for Integrated Credit Risk and Interest Rate Risk Management
+| van Deventer, Donald R., Kenji Imai and Mark Mesler
-| style="text-align: center;" |
+| style="text-align: center;" | 2004
 |-
+| Mitigation of hazardous comets and asteroids
+| Michael J.S. Belton, Thomas H. Morgan, Nalin H. Samarasinha, Donald K. Yeomans
-| style="text-align: center;" |
+| style="text-align: center;" | 2005
 |-
+| Natural disaster hotspots: a global risk analysis
+| Maxx Dilley
-| style="text-align: center;" |
+| style="text-align: center;" | 2005
 |-
+| What is a disaster? New answers to old questions
+| Ronald W. Perry, and Enrico Quarantelli
-| style="text-align: center;" |
+| style="text-align: center;" | 2005
 |}
@@ Line 377: / Line 473: @@

@@ Line 289: / Line 289: @@
 | style="text-align: center;" | 1998
 |-
+| Disasters and democracy
+| Rutherford H. Platt
-| style="text-align: center;" |
+| style="text-align: center;" | 1999
 |-
+| Natural hazard mitigation: Recasting disaster policy and planning
+| David Godschalk, Timothy Beatley, Philip Berke, David Brower, and Edward J. Kaiser
-| style="text-align: center;" |
+| style="text-align: center;" | 1999
 |-
+| Probabilistic Risk Assessment: What Is It And Why Is It Worth Performing It?
+| Dr. Michael Stamatelatos
-| style="text-align: center;" |
+| style="text-align: center;" | 2000
 |-
+| Behaviour Research and Therapy, An International Multi-Disciplinary Journal
+| Joseph I. Constans
-| style="text-align: center;" |
+| style="text-align: center;" | 2001
 |-
+| Acceptable Risk Processes: Lifelines and Natural Hazards.
+| Craig Taylor and Erik VanMarcke
-| style="text-align: center;" |
+| style="text-align: center;" | 2002
 |-
+| "Environmental Risk Analysis: Problems and Perspectives in Different Countries"
+| Gurjar, Bhola Ram; Mohan, Manju
-| style="text-align: center;" |
+| style="text-align: center;" | 2002
 |-
+| Risk, Uncertainty and Profit
+| Frank Hyneman Knight
-| style="text-align: center;" |
+| style="text-align: center;" | 2002
 |-
+| The social amplification of risk
+| Nick Pidgeon, Roger E. Kasperson, and Paul Slovic
-| style="text-align: center;" |
+| style="text-align: center;" | 2003
 |-
+| Megaprojects and Risk: An Anatomy of Ambition
+| Flyvbjerg, Bent
-| style="text-align: center;" |
+| style="text-align: center;" | 2003
 |-
+| Enterprise Risk Management: From Incentives to Controls
+| Lam, James
-| style="text-align: center;" |
+| style="text-align: center;" | 2003
 |-
+| Social Risk Management: The World Bank Approach to Social Protection in a Globalizing World
+| Holzmann, Robert; Lynne Sherburne-Benz and Emil Tesliuc
-| style="text-align: center;" |
+| style="text-align: center;" | 2003
 |-
+| Targeted Transfers in Poor Countries:Revisiting the Trade-Offs and Policy Options
+| Ravallion, Martin
-| style="text-align: center;" |
+| style="text-align: center;" | 2003
 |-
+|

@@ Line 159: / Line 159: @@
 | Risk, Uncertainty and Profit, Chicago
 | Knight, F. H.
-| 1921
+| style="text-align: center;" | 1921
 |-
+| Man and Society in Calamity: The Effects of War, Revolution, Famine, Pestilence upon Human Mind, Behavior, Social Organization and Cultural Life
+| Pitirim Sorokin
+| style="text-align: center;" | 1942
 |-
+| The environment as hazard
+| Ian Burton, Robert Kates, and Gilbert F. White
+| style="text-align: center;" | 1978
 |}