Risk management

In this lesson

1. 0:00 Risk management frameworks explained
2. 0:34 Monitoring and reporting risks regularly
3. 0:58 Risk response techniques and strategies
4. 1:26 TARA framework for risk assessment
5. 3:04 Alternative risk management approaches
6. 4:06 Risk management systems and processes

About this lesson

You'll explore the three core elements of a risk management framework—awareness, monitoring, and management—and discover practical tools like the TARA framework (Transfer, Accept, Reduce, Avoid) that help you categorise risks by probability and impact. This knowledge is essential for P3 Risk Management and relevant across CIMA qualifications where strategic risk assessment is critical to business decision-making. The TARA framework provides a structured approach to risk classification. By plotting risks on a matrix with probability on one axis and impact on the other, you can determine the most appropriate response: accept low-probability, low-impact risks; transfer high-impact but low-probability risks through insurance; reduce high-probability, low-impact risks; and avoid high-probability, high-impact risks where possible. Understanding this framework helps you prioritise which risks deserve management attention and resources. Beyond categorisation, you'll learn how organisations implement risk management in practice through people, processes, and technology. A typical system identifies risks, assesses their probability and impact, develops risk reduction plans, and monitors outcomes in a continuous cycle. You'll also explore alternative approaches including risk sharing through joint ventures, hedging financial risks, and diversification strategies. These practical techniques demonstrate how risk management connects to real business operations and strategic planning.

Duration: 5m