M_O_R Management of Risk Foundation Preparation Course

What is Risk Management?

Effective risk management offers significant, long-term benefits for organizations of all sizes – from small businesses to large corporations, both public and private. It also empowers individuals managing projects and programs. Strong risk management contributes to:

• Reduced Disruptions: Minimizing unexpected shocks and unwelcome surprises.
• Efficient Resource Utilization: Making the most of available resources.
• Waste Reduction: Eliminating unnecessary expenditure.
• Fraud Prevention: Protecting against financial irregularities.
• Enhanced Service Delivery: Improving the quality of services provided.
• Time Savings: Reducing the time spent on reactive problem-solving.
• Improved Operational Management: Better management of unit activities and maintenance.
• Lower Capital Costs: Optimizing financial investments.
• Increased Innovation: Fostering a culture of creativity and new ideas.
• Greater Change Initiative Success: Boosting the likelihood of successful change implementations.
• Internal Focus on Correct Execution: Ensuring things are done right.
• External Focus on Strategic Planning: Developing effective strategies.

The M_O_R Framework

The M_O_R framework provides a structured approach to risk management, built upon four core concepts:

• M_o_R Core Principles: These are foundational principles for developing and maintaining robust risk management practices. They are informed by corporate governance principles and the internationally recognized standard, ISO 31000:2009. These principles offer high-level, globally applicable guidance for organizations designing a suitable risk management approach as part of their internal controls.
• M_o_R Approach: The principles should be adapted and tailored to the specific needs of each organization. The organization's approach to these principles should be formally documented within its risk management policy, process manual, and strategies.
• M_o_R Process: The M_O_R process is divided into four key stages: Identification, Assessment, Planning, and Implementation. Each stage outlines the inputs, outputs, tasks, and methods required to ensure the overall effectiveness of the process.
• M_o_R Embedding & Review: Once a suitable approach and process are established based on the principles, organizations must ensure consistent application across the entire organization. Continuous improvement should be implemented to maintain the effectiveness of the risk management framework.