Risk assessment framework

1. Purpose

To systematically identify, assess, and manage risks that could impact RHU’s operations and objectives, ensuring effective mitigation to safeguard the organization’s assets and achieve its mission.

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2. Components

A. Risk Identification

Objective: Identify potential risks affecting RHU.

Sources of Risk:

• Internal Risks: Operational failures, staffing issues, financial mismanagement, technological failures.
• External Risks: Economic changes, political instability, regulatory changes, environmental hazards.

Identification Methods:

1. Workshops and Brainstorming Sessions:
   • Participants: Staff, stakeholders, experts.
   • Frequency: Quarterly.
2. Surveys and Questionnaires:
   • Target Audience: Employees, beneficiaries, and partners.
   • Frequency: Annually.
3. Historical Data Review:
   • Sources: Past incidents, industry reports.
   • Frequency: Annually.
4. SWOT Analysis:
   • Scope: Internal and external factors.
   • Frequency: Biannually.

Tools and Techniques:

• Risk Identification Templates: Structured documentation.
• Expert Interviews: Consultation with subject matter experts.

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B. Risk Analysis

Objective: Analyze the likelihood and impact of identified risks.

Assessment Criteria:

• Likelihood: Rare, Unlikely, Possible, Likely, Almost Certain.
• Impact: Insignificant, Minor, Moderate, Major, Critical.

Analysis Methods:

1. Risk Matrix:
   • Purpose: Prioritize risks based on likelihood and impact.
   • Tool: Risk Matrix Template (see below).
2. Scenario Analysis:
   • Purpose: Understand potential impacts and outcomes.
   • Frequency: As needed.
3. Quantitative Analysis:
   • Purpose: Statistical estimation of probabilities and impacts.
   • Tool: Risk Analysis Software.

Risk Matrix Template:

Likelihood \ Impact	Insignificant	Minor	Moderate	Major	Critical
Rare
Unlikely
Possible
Likely
Almost Certain

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C. Risk Evaluation

Objective: Evaluate the significance of each risk and determine acceptable risk levels.

Criteria:

• Risk Appetite: Level of risk RHU is willing to accept.
• Risk Tolerance: Thresholds for acceptable risk levels.

Evaluation Process:

1. Cost-Benefit Analysis:
   • Purpose: Compare mitigation costs against potential impacts.
   • Tool: Cost-Benefit Analysis Template.
2. Decision-Making Framework:
   • Purpose: Decide which risks to address and how.
   • Tool: Decision Matrix (see below).

Decision Matrix Template:

Risk Name	Likelihood	Impact	Risk Score	Mitigation Strategy	Responsible Person	Status

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D. Risk Treatment Strategies

Objective: Develop strategies to manage and mitigate identified risks.

Strategies:

1. Avoidance: Alter plans or processes to eliminate the risk.
2. Reduction: Implement measures to reduce the likelihood or impact of the risk.
3. Sharing: Transfer the risk to third parties (e.g., insurance).
4. Acceptance: Accept the risk if it is within acceptable limits.

Implementation:

1. Action Plans:
   • Components: Detailed steps, responsibilities, timeline, resources needed.
   • Tool: Action Plan Template (see below).
2. Monitoring:
   • Purpose: Review effectiveness of mitigation actions.
   • Frequency: Monthly.

Action Plan Template:

Risk Name	Action Steps	Responsibility	Timeline	Resources Needed	Monitoring Mechanism	Status

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3. Implementation

A. Regular Risk Assessments

Frequency: Annually or biannually, or more frequently as needed.

Process:

1. Scheduled Reviews: Set specific dates for risk assessments.
2. Assessment Teams: Designate teams responsible for conducting assessments.
3. Documentation: Maintain detailed records of all assessments.

B. Risk Register

Purpose: Document and track identified risks.

Components:

• Risk ID: Unique identifier.
• Description: Detailed explanation.
• Likelihood and Impact: Assessed levels.
• Mitigation Plan: Actions to manage risk.
• Risk Owner: Responsible person.
• Status: Current status.

Risk Register Template:

Risk ID	Description	Likelihood	Impact	Mitigation Plan	Risk Owner	Status

C. Mitigation Plans

Components:

• Action Steps: Detailed steps.
• Responsibilities: Assigned roles.
• Timeline: Deadlines.
• Resources Needed: Required resources.
• Monitoring: Review effectiveness.

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4. Integration with Other Systems

Alignment:

• Emergency Response Plans: Incorporate risk findings.
• Health and Safety Protocols: Address health and safety risks.
• Financial Management Systems: Include financial risks.

Documentation: Develop an integrated risk management system.

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5. Communication and Training

Objective: Ensure understanding and engagement.

Methods:

1. Training Programs: Regular sessions on risk management.
2. Communication Plans: Strategies to keep stakeholders informed.

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6. Continuous Improvement

Objective: Enhance the framework.

Methods:

1. Feedback Mechanisms: Gather feedback from staff and stakeholders.
2. Review and Update: Regularly review and update the framework.