The M_o_R Guide is intended to help organisations put in place an effective framework for risk management. This will help them make informed decisions about the risks that affect strategic, programme, project and operational objectives.
The guide provides a route map for risk management, bringing together basic concepts, an approach, a process with a set of interrelated process steps, and pointers to more detailed sources of advice on risk management techniques and specialisms. It also provides advice on how the principles, approach and processes should be embedded, reviewed and applied differently depending on the nature of the objectives at risk.
M_o_R defines risk as “an uncertain event or set of events which, should it occur, will have an effect on the achievement of objectives. A risk consists of a combination of the probability of a perceived threat or opportunity occurring and the magnitude of its impact on objectives”. Within this definition ‘threat’ describes an uncertain event that could have a negative impact; and ‘opportunity’ describes an uncertain event that could have a favourable impact.
M_o_R employs a best practice approach to managing opportunities and risks, providing a structured framework for risk management. Its aim is to help organisations to achieve their objectives by first identifying the risks and then choosing the right response to the threats and opportunities that are created by uncertainty.
The key features of Management of Risk training include:
- A standard reference for risk management
- A framework of best practice principles and concepts drawn from latest experiences and proven practice in risk management
- A certification exam to demonstrate knowledge and understanding of the content and application of M_o_R
- Compatibility with ISO 31000
These elements can be summed up by the statement that the “adoption of well managed risk-taking is likely to lead to sustainable improvements in service delivery”.
Organisations need to have in place the skills, management structures and organisational structures to take advantage of potential opportunities to perform better and to reduce the possibility of failure.