Strategic Risk Management Details

Just realised that I didn't really tell you guys what SRM is really about and what we learned in classes :)

The EBS-Book devides Risk in 4 main categories:

- Strategic Risk
- Change / Project Risk
- Operational Risk
- Unforseen / Unforseeable Risk

The main aim is to identify the risks of each category and how they can influence your organisation. Important here is to know the Mission / Highest level objectives of the company to have a context to search.

After identifying the different risks they are plotted on a risk map which has the two axes "Impact" / "Likelyhood".

Then you can plan what you wanna do with these risks: Mitigate, Transfer, Accept, Avoid and so on... here it is important to recognise that there will always be a residual risk left after taking actions. The aim here is to bring the risk to an acceptabel level for the organisation.

Another big part of SRM was scenario planning where we made different scenarios how the risks might influence our strategy. Here it doesn't really matter how realistic the different scenarios might be. The important step is to recognise different outcomes and at least thaught of it instead of being taken by surprise.

And the last part was Risk interdependeny which is plotted on a matrix called "Risk interdependency field (RIF)". This matrix visualises the different risks and shows how they are related to each other in the context of different functions in the organisaion.

In classes we had different case studies to each of the different main parts and had good fun during the group works.