Risk mapping

In this lesson

1. 0:00 Risk mapping and the Tara framework
2. 0:36 Impact and probability in risk assessment
3. 2:42 Transfer strategy for high impact risks
4. 3:04 Accept strategy for low impact risks
5. 3:43 Reduce strategy for frequent low impact risks
6. 5:03 Avoid strategy for critical high risk scenarios
7. 7:06 Worked example: Z plc handbag manufacturer

About this lesson

The lesson introduces the TARA framework, which categorises risks into four strategic responses. High-impact, low-probability risks should be transferred—typically through insurance policies that shift the risk to another party. Low-impact, low-probability risks are simply accepted because they're not worth the management effort. High-probability, low-impact risks warrant a reduce strategy, where you implement controls to lower the likelihood of occurrence. High-impact, high-probability risks demand avoidance—the most serious category requiring you to eliminate the risk entirely through alternative approaches or withdrawal from that activity. You'll work through a practical example involving a leather handbag manufacturer considering entry into the cloth bag market. By applying the framework to this scenario, you'll see how to evaluate whether a risk should be transferred, reduced, accepted, or avoided based on its characteristics and strategic importance to the business. This technique is essential for P1 Risk Management and helps you develop the analytical approach needed to support sound business decisions under uncertainty.

Duration: 9m