Risk Understanding and Classification

How do you classify a risk in the system?

To classify a risk, select the appropriate risk class and level, link the risk to relevant business processes and service providers, then press Next to proceed. Completing these fields accurately ensures correct risk categorisation and alignment with your organisation's risk management framework.

Before you begin: Navigate to the Risk Management module and open the relevant risk record (or create a new one) to access the risk classification form.

Key Steps:

1. Select the risk class from the dropdown (e.g., Credit) to classify the risk into a specific category.
2. Choose the Risk Level (e.g., Division) to indicate the organisational scope or unit at which the risk is assessed and managed.
3. Link the risk to specific Business Processes by selecting the relevant process (e.g., Accounts Receivable).
4. Identify external Service Providers involved in the scenario by selecting them from the list.
5. Once all details are filled in, press "Next" to proceed.

Cautionary Notes:

• Ensure that the risk class, level, business process, and service provider selected are accurate and relevant to the specific scenario.
• Double-check all information before proceeding to the next step to avoid errors in risk classification.

Tips for Efficiency:

• Familiarise yourself with the different risk classes available to accurately classify risks.
• Communicate with relevant team members or stakeholders to ensure the selected business processes and service providers are aligned with the scenario.
• Regularly review and update risk classifications to maintain accuracy in risk understanding and classification.

By completing these steps, your team establishes a structured and defensible approach to risk classification, supporting stronger risk management and clearer alignment across business processes.

Watch a video demonstration: