TABLE OF CONTENTS Mapping operations risk involves identifying what the source of the risk is, what its impact might be and what controls there are to mitigate the risk. One very early question we need to ask is, what level of risk are we talking about? If we want to map every risk however small across the whole Operations function then clearly we are talking about a very major undertaking for most organizations. We do, of course, want to have a meaningful mapping of risk but it is my view that the mapping should be relevant and only include risks that have one or more of the following characteristics:
Likely to be systemic
Can result in a single financial loss greater than X where X is determined by the size of the organization and the loss figure it would deem significant to its business
Can result in a multiple or repetitive loss situation that would be greater than X where X is determined by the size of the organization and the loss figure it would deem significant to the business
Could result individually or systemically or by repetition in some sort of direct or indirect regulatory risk situation
Would be likely to cause visible or invisible...
