Risk management has gained a great deal of attention in recent years. Now, more than ever, businesses encounter risks on a daily basis, whether in the form of cyberattacks, strategic errors, compliance issues, or even unexpected disasters like the COVID-19 pandemic.
Short, medium, and long-term risks can each have a huge impact not only on daily business functions but also long term strategies, as well as a company’s reputation. Having a structured and demonstrably effective framework for responding to risks, whether predicted or unforeseen, is essential for sustaining value generation.
Management of Risk (M_o_R) is an AXELOS risk management framework. Described as a “route map for risk management”, M_o_R offers Principles, Processes, and a proven Approach for identifying, preparing for, responding to, and minimizing the impact of risks. The syllabus not only explains the concept and importance of business risk management but also how to embed risk management practices throughout different teams and departments within an organization.
So, what is it that makes the M_o_R framework successful, and how can it benefit businesses? Here is everything you need to know to sell M_o_R risk management training to your organization.
Ongoing Improvement
M_o_R is a framework designed to implement permanent and ongoing changes to an organization’s risk management policies and practices. AXELOS does not release ‘versions’ of frameworks anymore and instead opts to keep improving them, giving practitioners a wealth of new information on an ongoing basis.
At the same time, M_o_R practitioners can continue adapting their use of the framework to suit their own requirements, whether in response to changing circumstances, new best practices, or even instances where risks create learning opportunities.
That being said, M_o_R does not necessarily require overhauls every time it is adapted. Indeed, even the initial implementation of M_o_R can have little to no impact on the continuity of daily business processes or strategic goals.
Context of Risk
M_o_R is a framework that has users recognize how risk management needs to be applied, rather than just applying a one-size-fits-all model. For example, M_o_R takes different approaches to long, medium, and short-term risks in terms of how they need to be reviewed, what kind of impact they can have on the continuity of business services, how they relate to strategic goals, and so on.
In short, M_o_R can always be applied in a way best suited to the risks in question. This is true even when it is applied throughout an organization.
Perspective
M_o_R examines risks from different perspectives, including strategic, program, projects, and operational viewpoints. As such, the syllabus paints a comprehensive picture of how different types of risks can impact a business at different levels.
At the same time, the framework also recognizes and respects the responsibilities, terminologies, and roles that lie outside of project and program management. After all, AXELOS is also behind some of the world’s biggest frameworks for IT management, program management, and more.
The result is a framework that does not encourage a siloed view of risk. Instead, it has practitioners accurately perceive how risk can impact an entire organization, even within a single program. Not only does this equip risk managers with highly effective insight, but it also makes M_o_R training viable for individuals across a number of departments affected by business risks.
Preparedness
As we said previously, M_o_R embeds risk management practices across an organization. M_o_R Processes offer four steps that describe inputs, outputs, and activities for identifying, assessing, and controlling risks. Meanwhile, the Principles ensure organizations have clear policies, process guides, and strategies to apply in practice.
Why is this so important? Because risk management is inherently uncertain. Not all risks can be predicted, as incidents like the recent global pandemic have demonstrated. Organizations must have a way to deal with the unexpected.
With M_o_R, businesses can respond quickly and constructively to both anticipated and surprise risks, allowing them to maintain business operations and continue pursuing strategic goals with minimal interruption. They will also have streamlined processes for integrating risk management into other processes, such as strategic program management.
Relevance
It’s no secret that risk management is becoming a far more relevant and valuable topic. It has reached the point where many professionals can become ‘risk managers’ as a specialization. One of the biggest reasons for this is the advent of the Digital Age, which has introduced a variety of new risks that businesses must consider as a priority. Indeed, integrated risk management (IRM) has become a priority for companies of all sizes, and risk management is even a regulatory requirement in certain industries.
This has made studying risk management highly relevant and rewarding not just for risk managers but also for a variety of other professionals, including project managers, program managers, support staff, operational managers, business change managers, and anyone responsible for establishing or integrating new standards in a business. Training such staff can enhance risk management within an organization while also motivating students when it comes to studying for exams.
Cost of Risk Management
It goes without saying that ineffective risk management can be disastrous. When consequences take companies unawares, they can cause serious setbacks or invite huge costs in terms of meeting targets and maintaining value-generating processes. It can also damage a company’s reputation, such as if it failed to prevent a significant data breach or struggled to adapt to new long-term circumstances.
M_o_R offers a proven approach for minimizing the potential costs of risks. It encourages preparedness both to prevent known threats and respond to risks in real-time. This dramatically reduces the impact risks can have on a business and can also help users to evolve their practices in order to prevent recurrences. It can even help businesses stand out against less well-prepared competitors and thrive as risks lead to new opportunities.
