Identify and assess the risks inherent in the organisation’s business model

Overview & Purpose

What This Standard Covers

This NOS focuses on the process of horizon scanning and the responsibility of the governing body to continuously identify, evaluate, and manage significant risks that may affect the long-term viability of the organization.

Performance Criteria

• Identify key material internal and external risks.
• Quantify and explore mitigation possibilities for risks.
• Identify key risks undermining organizational strategy or reputation.
• Assess probability and impact of individual risks and their potential interactions.
• Demonstrate awareness of new and evolving operational risks.
• Regularly review the organization’s key material risks for effective monitoring.

Knowledge & Understanding Requirements

• Principles of measuring, managing, evaluating, and mitigating key risks (internal and external).
• Techniques for reviewing and ensuring the effectiveness of risk management processes.
• Methods for identifying, analyzing, and mitigating various types of risks, including rare high-impact events.
• Procedures for challenging strategic proposals and key risk policies.
• Understanding when to involve specialists in risk assessment.
• Importance of oversight for key risks that could undermine organizational strategy.
• Knowledge of when assurance and verification of compliance are necessary.
• Awareness of timely intervention in cases of risk management breaches.
• Impact of risk on the organization’s performance drivers.
• Relationship of key risk indicators to organizational success.
• Concept of horizon scanning to capture current risks across various fields (political, economic, sociological, technological, legal, environmental).

Relevent Roles

• Managers and Senior Officials
• Directors and chief executives of major organizations
• Senior officials of special interest organizations
• Finance Managers and Chartered Secretaries
• Personnel, training, and industrial relations managers
• Chartered and certified accountants
• Management accountants
• Company Secretaries