Risk treatment, monitoring and reporting

Treat risks, monitor risks and control measures and report on the results tailored to each target group. Simple in one tool.

Risk Management

We’ve previously discussed how to get started with risk management using the first two steps of the risk management process: 1. Identify the risk 2. Assess the risk In these two steps:

• Map out which positive events (opportunities) and negative events (risks) affect your organization's objective.
• Learn how to easily conduct an assessment in line with your business processes.

In this blog, we further explain the next steps of risk management, also referred to as risk management: 3. Handle the risk 4. Monitor and report on the risk This way you can create a complete risk management and reduce the risks for your organization.

Risk management: deal with the risk

If a risk exceeds the risk tolerance, a management action will need to be taken. The most well-known goal of control measures is to reduce a risk to an acceptable level. There are also other ways to deal with risks. We recognize the following risk strategies:

Avoid

A very effective solution is to remove the risk by no longer performing certain risky activities. For example, your organization may decide not to offer a certain product because of product liability risk. Excluding liabilities in terms of delivery or contracting also fall into this category.

Reduce

If avoiding risks is impossible or undesirable, you look for ways to reduce the risk to an acceptable level. Before implementing any control measures, it is necessary to determine what the causes of an undesirable event are or could be. Usually, there isn’t just a single cause, but rather multiple causes. These events are also often separated in time, and one often leads to another. You’ll need to determine which measures—or combination of measures—to implement in order to manage the risks. One way to reduce risks is by using a risk management tool such as Perium. Within the platform , you can link risks to control measures. This gives you a clear overview of all the possible actions you can take to reduce the various risks.

Transfer

Transferring a risk does not focus on reducing the probability, but on mitigating the consequences. An example is taking out liability insurance. Sharing a risk together by sharing any costs with a partner is also a form of risk transfer.

Accept

If the above alternatives are not possible or desirable, accepting the risk is also an option. Sometimes the cost of an unwanted event is less than the cost of controlling it. Then, should the risk occur, you cover the cost from your reserve.

Monitor and report on risk

If the chosen strategy does not lead to the desired result, adjustments must be made. Perhaps the control measures are being implemented in accordance with the established guidelines and criteria, but they may need to be modified or expanded to achieve the desired results. To assess this, risks and control measures must be reviewed periodically. Monitoring risks is also easy to report in a risk management tool like Perium. With this tool, you have access to a smart, data-driven PDCA cycle that allows you to assign the right actions to the right person at the right time. This ensures that employees address risks in a timely manner. It’s also possible that the combination of control measures implemented may not be sufficient—or may not be fully effective—because not all risks incurred have been identified and evaluated. In Perium, all relevant digital risks are available, so the likelihood of this problem occurring is zero. In addition, control measures must be reviewed periodically. When doing so, you should consider:

• the design of the measure
• the existence of the measure
• the operation of the measure

Allows you to determine the effectiveness and maturity level of the management measure.

Digital risks

Risk management is a continuous process and an essential part of business operations. It is not a one-time activity; the identification, analysis, and treatment of risks must be regularly carried out, updated, and reviewed. Perium helps you by providing comprehensive and validated digital risk profiles that are already linked to the appropriate control measures. This saves you a lot of data entry work. You can also add specific risks relevant to your organization.

Target reporting

Risk reports must be tailored to the target audience. A report to the board or (external) regulators will have a different level of detail than a report to managers or risk owners. Board Members and Supervisors Board members need information about where the organization stands. They ask themselves: How cyber-resilient are we as an organization? This helps board members make decisions regarding risk appetite and strategy. Management Managers need a more detailed picture and want support in making decisions about priorities, capacity, and budgets. For example, they ask: Are we implementing the right measures? Risk owners Risk owners want to know which activities need to be carried out and see the big picture. For example: Who does what, when, and what is needed to make it happen? Perium offers comprehensive reporting that provides insight into your organization’s performance and risks. On the Perium dashboard, it quickly becomes clear to each target group:

• where you stand as an organization
• What your biggest risks are (heatmap)
• What is the maturity level of your control measures

Risk Management with Perium

Risk management is a critical activity for every organization. With Perium, you can carry it out more effectively and efficiently. You’ll be up and running within half an hour and can immediately start using relevant best practices and standards. If you’re missing specific risks or control measures, you can easily add them to the platform.