Risk Management System :
Organizations today wish to gain visibility into and control various internal and external risks that pose a threat to their business interests. Risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps to reduce/curb the risk.
Risks can come from various sources: e.g. uncertainty in financial markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters as well as a deliberate attack from an adversary, or events of an uncertain or an unpredictable root-cause.
The Risk monitoring system by Lateral Praxis provides a framework for documenting and assessing risks, enforcing rules and procedures that are designed to mitigate the risks. The solution provides capabilities such as risk calculators and risk heat maps for risk analysis and monitoring. Thus there is a central framework available to continually monitor the internal and external environments and identify potential sources of risk early, assess those risks, and respond based on the organizationís risk tolerance.
The LP-Risk framework is customized to the needs of the organization and is deployed in a transparent, streamlined process by:
Establishing Context by identifying current conditions in which the organization operates on an internal, external and risk management context.
Identifying Risks by documenting potential threats to the organization and the representation of areas that may be exploited for competitive advantage.
Analyzing/Quantifying Risks by creating probability distributions of outcomes for each risk.
Assessing/Prioritizing Risks by determining the contribution of each risk to the aggregate risk profile, and appropriate prioritization.
Treating/Exploiting Risks by developing strategies for controlling / exploiting various risks.
Monitoring and Reviewing through continual measurement and monitoring of the risk environment and the performance of the risk management strategies.
The system can integrate with SAP or any other ERP and internal auditing tools of the organization.
Provision for Administrator to create the Risks on the system
Provision to assign the Risk to a Location, multiple Risk Owners and a Risk Champion
Provision for the Risk Champion to create the Risk Plan by filling up the necessary details along with one mitigation measure and releasing it.
Subsequently, provision for the Action Takers can update the Actions on the system based on the Frequency defined for every Mitigation Measure.
Monitoring and Reviewing using various MIS.