Use this form to create and maintain the types and sub-types of risks that the risks will be managed on.

Note

Risks may be defined as physical, financial, ethical or legal. These types will influence the processes to take depending on the impact and likelihood. Physical risks are those involving personal injuries, environmental and weather conditions and the physical assets of the organization such as property, buildings, equipment, vehicles, stock and grounds.

Financial risks are those involving the assets of the organisation and include theft, fraud, loans, license fees, attendances, membership fees, insurance costs, and lease payments, pay-out of damages claims or penalties and fines by the government. Ethical risks involve actual or potential harm to the reputation or beliefs of your club, while legal risks consist of responsibilities imposed on providers, participants and consumers arising from laws made by federal, state and local government authorities.

Create risk type and sub-types configuration data

Risk type is used to create the risk types and sub-type levels 1 and 2 in order to classify and manage all risks that are observed and reported. The procedure below describes the setup for the different risk types.

1.      Click under Setup > Risk > Risk type

2.      Click New button to create a new risk type.

3.      The following is an example of the risk type and sub-type levels form view:

 

4.      Click in the type field and enter a risk type that will be used to define risk areas for new risks that are observed and created.

Note

The risk types can be defined in areas for example : Financial, Operational, Safety and Strategic. This types will be created according to business industry and the risk areas that will be managed.

5.      Enter the description to define the risk type.

6.      Select the name of the responsible person who will take ownership to manage the specific risk types.

7.      Enter the Risk appetite to define the level of risk that an organisation is prepared to accept, before action is deemed necessary to reduce it. The higher the value of appetite, the lower is the risk for tolerance.

8.      Enter the Risk importance to define the risk importance that is used as a measurement instrument when assessing risk. The higher the value of importance, the higher is the risk.

9.      Select the unit of measure code and add a response time by which the responsible person should respond regarding this risk. Add the UOM and response time to the priority scale group.

10.  Enter a risk sub type level 1 to define the next level of classification of the selected risk type. There can be multiple sub types for a risk type.

11.  Enter a description to define the sub-type.

12.  Enter the Risk appetite to define the level of risk that an organisation is prepared to accept, before action is deemed necessary to reduce it. The higher the value of appetite, the lower is the risk for tolerance.

13.  Enter the Risk importance to define the risk importance that is used as a measurement instrument when assessing risk. The higher the value of importance, the higher is the risk.

14.  Enter a sub type level 2 to define the next level of classification of the selected risk sub-type level 1. There can be multiple sub types for a risk type.

15.  Enter a description to define the sub-type level 2.

16.  Select a priority model to define the model that will be used to calculate or determine the priority.

17.  Enter the Risk appetite to define the level of risk that an organisation is prepared to accept, before action is deemed necessary to reduce it. The higher the value of appetite, the lower is the risk for tolerance.

18.  Enter the Risk importance to define the risk importance that is used as a measurement instrument when assessing risk. The higher the value of importance, the higher is the risk.

19.  Save the record by pressing CTRL+S.

20.  Click Delete button to delete records that were created.