Operational Risk Management in Practice
CorProfit Systems is both a supplier of Risk Management software and a Risk Management consultant, specialising in the implementation phase and software operator training. In this role, we develop close relationships with our clients, enabling us to keep in touch with the real world of operational Risk Management. We are never far from the realities of the business:
- Effective Risk Managers have to deal with large amounts of data, even when keeping a strategic focus on risk issues. Spreadsheets or Word documents cannot cope with the quantity of data or with the immediacy of the issues that have to be faced. The use of a sophisticated relational database such as KnowRisk® has become a necessity in well-structured organisations.
- Risk occurs at any level, in any area of an organisation. KnowRisk® has the capability to cater for the different contexts of operations in which most organisations are involved. For example an organisation may have major asset categories that have distinct maintenance programmes. In KnowRisk® it is possible to precisely reflect a particular asset category as a primary profile, with sub-profiles of risks associated with asset management works, which may, in turn be managed by a particular business unit in the organisation. There are no limitations with KnowRisk®. The real-world operations of the organisation can be precisely modelled and portrayed in the KnowRisk® “Explorer” interface.
- There is no one way of performing risk management. KnowRisk® is designed to allow for a start up in the simplest possible way so that the organisation has an opportunity to gain confidence in the Risk Management framework. KnowRisk® is a tool you can grow with, rather than a tool you will grow out of. In KnowRisk® there are features built-in that give you the flexibility to take the next steps in adding processes and value to your Risk Management programme.
KnowRisk® incorporates a powerful, fully synchronised, qualitative and quantitative calculator. Most users start with subjective assessments in the Risk Management process. While data is being built up in this qualitative or subjective way, KnowRisk® is building a fully quantitative or mathematical model, making it easier to make the transition to quantitative analyses when this becomes appropriate.
KnowRisk® is unique in the way that it deals with the assessment of inherent risk, the effectiveness of controls and assessment of residual risk. It’s simply a matter of using drop-down lists and clicking on the judgement of the person doing the assessment. Methods and Steps can show you the way.
The audit module in KnowRisk® can be used to bring together the audit plan and front-line risk profiling. This adds value to the organisation’s compliance procedures with greater accuracy at lower cost than traditional methods of compliance.
The database at the core of KnowRisk® has been designed to “learn over time”. This means that as users populate and maintain their risk profiles, so KnowRisk® will be accumulating information, with built-in algorithms to assist the user in selecting the best controls for the job. This technology is unique in KnowRisk® and has been patented worldwide. Its benefit is to effectively compress the risk management process and still obtain comparable results to more complex methods.