Relating risk events to risks and relating a risk statement to a risk is important for
all organizations that use the Risk Management application. Properties to enable these
relationships are provided under Risk Event Properties and Risk Management properties.
Relationship of risk events to risk
Consider relating risk events to risks if you use the Risk Management application.
This relationship provides data for future risk assessment and is also useful for accurate
reporting. For example, if the management of an organization wants to know the total loss
incurred due to internal fraud, it can only be reported if all the risks are related to the
internal fraud risk event. To relate risks events to risk, set the Make risk event to
risk relationship mandatory property to Yes. By default, this property is not turned
on.
Relationship of risk statement to risk
Consider relating each risk statement to a risk. Establishing this relationship prevents the
creation of orphan risks. An orphan risk is a risk that does not have a corresponding risk
statement associated with it. For example, if all the business units within an organization
understand the risk of employee attrition in different terms, it is difficult for the
organization to maintain comprehensive data on the risk of attrition. It is easier if the risk
statement of Employee Attrition is attributed to all events that relate to this risk.
Establishing the relationship between a risk statement and a risk is vital for correct reporting
and prevention. To relate risks to risk statements, set
sn_risk.risk_statement_mandatory to True.
Add Basel categories to risk statements
The Basel categorization is specific to the banking industry. This categorization helps
customers comply with the Basel regulations by automating their loss event reporting. This
particular setting enables the users to view the Basel Dashboards. The Basel Dashboard shows the
number of loss events and net loss based on the Basel business lines and categories. Enabling
this setting enables the users to view the Basel categorization tab where users can select one
of the following Basel categories that apply. To enable Basel categorization, set
Show Basel attributes and reports to Yes.
-
- Internal fraud
- External fraud
- Employment practices and workplace safety
- Clients, products, and business practice
- Damage to physical assets
- Business disruption and system failures
- Execution, delivery, and process management
For more information, see
Properties installed with Advanced Risk and
Properties installed with Risk Management
