Risk Appetite Configuration
This article contains: |
1. Overview |
The risk appetite is the acceptable extent of risk that you would accept in day-to-day operations when fulfilling business objectives.
Note: This standard feature is enabled for your organisation once the request is made to Camms, and is done so, by executing a script. In the near future, this will be made available for you to set it up via enabling a configuration setting.
2. Appetite Benchmarks |
A risk appetite benchmark (e.g. high, low, critical) can be assigned to your organisation's risk categories. To do this, first you need to define these benchmarks that would suit your organisation.
To add a new appetite benchmark:
STEP 1: Under Framework > Risk Settings, click on Appetite in the left panel and select the 'Risk Appetite Benchmark' tab.
STEP 2: At the top of the list of already added benchmarks, Click on Add New Button and enter a title for your appetite benchmark, a value score, and click the Add button at the right corner to add a new risk appetite benchmark for your orgnisation.
STEP 3: Add as many appetite benchmarks as needed by your organisation as Step 2.
2.1 Assign Appetite Benchmarks
Once you have defined the list of appetite benchmarks, it can now be assigned to your organisation's risk categories.
To add a new risk category and assign a benchmark:
STEP 1: Under Framework > Risk Settings, click on Categories.
STEP 2: Click on Add new Button, enter a risk category name, risk category description, select the list of identifications, select the list of consequences, select which items are mandatory consequences, and at the end select the Appetite Benchmark that you wish to apply for this risk category.
STEP 3: Click on the Add button to add the new risk category, while it gets assigned an appetite benchmark as well.
To update a benchmark of an already added risk category:
STEP 1: Under Framework > Risk Settings, click on Categories.
STEP 2: Click on the Edit button at the right corner of the risk category.
STEP 3: Select the new Appetite Benchmark that you wish to apply for this risk category and click on the Save button.
Note: Once the appetite benchmark is added to a risk category, when adding a new risk, and when the 'Primary Risk Category' is selected, it will auto populate the assigned 'Risk Appetite Benchmark'. You may edit the risk appetite benchmark from here too, by clicking on the Edit button next to the field and click the Save button once updated.
2.2 Set Up Rating Types
Once you have defined the list of appetite benchmarks and assigned it to your risk categories, your organisation's risks can be assessed if they are 'Within Appetite' or 'Out of Appetite', based on the 'Risk Rating' calculated.
To access the two rating types, or to edit the names/image/colour:
STEP 1: Under Framework > Risk Settings, click on Risk Rating Type.
STEP 2: Select Risk Appetite from the select screen type dropdown.
STEP 3: To edit values, click on the Edit button in the right corner and edit the type name by entering a new name, and click on the Image and Colour to select new values for these.
STEP 4: Click on the Save button.
Notes:
If the 'Risk Rating' value is higher than the 'Appetite Rating' value, the risk appetite rating type will display 'Out of Appetite'. If the 'Risk Rating' value is lower than the 'Appetite Rating' value, the risk appetite rating type will display 'Within Appetite'.
'Risk Rating' values and formula can be set up under Framework > Risk Settings > Calculations.
2.3 View Risk Appetite Ratings
You can view all risk appetite ratings of your risks under the 'Risk Register' tables or click on an Individual Risk Register Item and scroll to the bottom, where you may view the appetite rating.