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Risk Prioritization Framework

Daily operations of a firm involve a variety of concerns, some of which involve personnel, organizational decisions, and others involve competition. However, strategic decisions must be made that improve their bottom line.


These issues also translate into risks that must be adequately mapped out so that firms can realise a variety of rewards. With the goal of fostering successful enterprises, identifying and mitigating these risks is a top priority for any establishment.


Typically, organisations concentrate their efforts on developing regulations aimed at reducing such risks. Whereas some choose to break the same down into manageable components, which may aid in their elimination to some level. As straightforward as this may appear, there are a plethora of additional aspects at play when it comes to risk management in general.


Risk categorization is critical for risk management since certain risks are unpredictable and unavoidable, while others may be anticipated and managed for. A thorough risk assessment considers a variety of elements, including health and safety, the organisational environment, and governance. Along with the variables analysed, this risk assessment considers causation and uncertainty, which are critical components of assessing the business's overall risk. By evaluating risk in connection to the assets to be safeguarded and the security measures implemented, a holistic view of the entire security architecture may be obtained in real time. This enables an in-depth categorization of company hazards and provides extra insight into the priority of each while quantifying their immediate economic impact.


In general, risk assessments quantify risk in isolation, without taking into account the causal effect or link between the various hazards.

The matrix under discussion is being developed in order to provide us with an acute mapping of the link between numerous hazards and to contextualise them in order to prioritise risk mitigation measures.

  • This entails doing calculations.

  • The ramifications of a specific danger

  • The consequence of an event

  • Threats have both positive and negative consequences.

  • Threats that are completely separate from one another








A matrix of the said risk is quantified with variable weightage assigned basis assessment levers specific to the site in question. The product of the scores and weightage of each said risk taking into account the probabilistic nature of the risks existing at the site is calculated. Furthermore, the matrix is evaluated using three scenarios stated below which allow for risk reduction. These scenarios take into account the causal dimensions of risk relationships resulting in the exact impact of individual risks amongst themselves and each other.


The scenarios are

  • Impact Strategy

  • De Risking Strategy

  • Impact and De Risking Strategy

Prioritisation of Risk Mitigation Strategy

Impact Strategy

This strategy gives preference to the direct impact of a single threat with respect to the remainder.


The distribution has classified the 12 threats into 5 clusters thus reducing the overall vectors for risk management to 5

De Risking Strategy

This strategy gives preference to the indirect impact of a single threat with respect to the remainder.


The distribution has classified the 12 threats into 6 clusters thus reducing the overall risk vectors for risk management to 6


Impact and De Risking Strategy

This strategy gives preference to the direct and indirect impact of a single threat with respect to the remainder.


The distribution has classified the 12 threats into 4 clusters thus reducing the overall risk vectors for risk management to 4

Analysis

On comparison of the charts it is clear that the Impact and Derisking Strategy does far better by reducing the risk vectors to 4 as opposed to the other two methods.

This allows for a prioritisation of the risk mitigation strategy by calculating the priority basis the magnitude of the said clusters in addition to their distance from the centroid; order of which is stated below

  • Data Manipulation

  • Fire

  • Health Hazard

  • Sabotage

  • Leakage

  • Unauthorised Access

  • Pilferage

  • Accident

  • Spillage

  • Perimeter Breach

  • Non Adherence

  • Quarrels

Thus, risks are not assessed in isolation, but as a result of the multiple linkages that may arise as a result of their correlation, which provide us with the total impact of the risk on the system under evaluation.





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