Risk management
You'll learn how to identify and manage risks using the TARA model, a practical framework that guides you to transfer, avoid, reduce, or accept risks based on their probability and impact.
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In this lesson
- 0:00 Introduction to risk management and TARA model
- 2:08 TARA framework: four risk management strategies
- 4:01 Applying TARA to real business scenarios
- 8:15 ALARP principle for high-risk industries
- 10:01 Risk avoidance and retention strategies
- 11:30 Spreading and diversifying risk explained
- 14:05 Risk auditing and independent evaluation
- 15:02 External reporting and key risk indicators
- 16:32 Four lines of defence model
- 18:44 Benefits of assurance mapping
About this lesson
This lesson covers the risk map—a tool that assesses risks by plotting them across probability and impact—and then shows you how to apply the TARA model to determine the most appropriate management strategy for each risk. You'll also explore related techniques like ALARP (as low as reasonably practicable), risk spreading and diversification, risk auditing, and the four lines of defence model. This content is directly relevant to P3 Risk Management and SBL Strategic Business Leader, where you'll need to recommend tailored risk strategies to organisations facing real-world challenges. The lesson uses practical scenarios to show how these concepts work in context. You'll see how a technology company facing cyber threats, supply chain disruption, and exchange rate volatility would apply different strategies to each risk—avoiding high-probability, high-impact threats; reducing moderate risks through controls; and accepting low-impact risks. The TARA framework gives you a clear decision-making process, but the key to exam success is going beyond the model itself. You need to explain not just which strategy to use, but how to implement it—for example, reducing supply chain risk through supplier diversification or currency hedging, not just stating "reduce the risk." You'll also learn why external reporting, risk auditing, and assurance mapping matter to a well-governed organisation, and how the four lines of defence create layers of oversight to catch and manage risks effectively.
Duration: 19m
Transcript
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