Steps to Create a Master Risk
Navigate to the Risk Workspace Dashboard
Start by navigating to the Risk Workspace Dashboard in BoardX.
In the top-right corner of the screen, click +New to begin creating a new risk statement.
Select Master Risk
In the dropdown select Risk Statement
In the pop up window select Create
Enter Risk Title and Description
Risk Title: Type in a clear and descriptive title for the risk statement.
Risk Description: Provide a detailed description outlining the potential risk. This helps stakeholders understand the nature of the risk.
Select the Risk Category
Why it’s important: The Risk Category classifies the risk based on its nature, helping stakeholders prioritize and assess the risk properly.
How to do it:
Choose the Risk Category that best matches the type of risk you are identifying (e.g., operational, financial, strategic, etc.).
Categories help in the analysis and mitigation of risks by providing clarity on the type of risk and appropriate response strategies.
System Default Categories: There are 13 default risk categories in BoardX.
Custom Subcategories: You can add customized subcategories for further specificity in the Settings Page.
Select a Pre-Defined Risk Assessment Method
Choose a Risk Assessment Method from the pre-defined options available in BoardX, or create a custom method if needed. This method will guide the evaluation and mitigation of the risk.
Assign Entity or Entity Group (Mandatory to generate risk)
Why it’s important: Linking a risk statement to an Entity or Entity Group helps define the scope and context of the risk.
How to do it:
Click +Link Entities- Check the entity(ies)in the pop-up window, then click Link.
Click +Entity Group:
Check the entity group(s) in the pop-up window then click Link.
If you are assigning the risk to an entity group, you have the choice to:
Assign the risk to only the entity group owner.
Or assign the risk to each individual entity within the group.
Multiple Entity Assignments: When assigning a risk to multiple entities, separate risks will be generated for each entity.
In the Risk Setup section, you'll define the following key parameters to properly manage and monitor the risk:
Risk Appetite
Set the level of risk your organization is willing to accept. This defines what’s considered acceptable and guides how risks are managed and mitigated.
Risk Assessment Frequency
Select how often the risk should be assessed (e.g., quarterly, annually, or other timeframes that fit your organization’s needs).
Launch and Due Dates
Launch Date: The date when the risk assessment process begins.
Due Date: The date when the initial risk assessment should be completed.
Automatic Follow-Up: After the first launch, BoardX will automatically send follow-up assessments based on the set frequency, keeping the process on track.
Define Risk Owner
The Risk Owner is responsible for assessing the risk.
To assign a Risk Owner, choose one of these options:
Entity/Entity Group: Select this if the risk is assessed by entities or group owners.
Risk Management Role: Choose this if a specific risk management role will assess the risk.
The Risk Owner will oversee the risk assessment process, take action to reduce the risk, and track progress.
Click Save on the top right of the screen.
Key Considerations
Multiple Entity Assignments: When assigning a risk to multiple entities, BoardX generates separate risks for each one, allowing for customized assessments.
Custom Risk Assessment Methods: If the default assessment methods do not fit your needs, custom methods can be created in the Risk Settings Page for more tailored evaluations.
By following these steps, you can create well-structured risk statements that are clearly defined, assigned, and ready for proper assessment in BoardX.