In organizations and business situations, almost every decision involves some degree of risk. Aimed at everyone who has ever made an important business decision, M_o_R is a robust yet flexible framework that allows accurate risk assessment.
M_o_R considers risk from different perspectives within an organization: strategic, programme, project and operational. While it links to other AXELOS Global Best Practice, it respects the roles, responsibilities and terminologies used outside the disciplines of programme and project management.
Effective risk management can bring far-reaching benefits to all organizations, whether large or small, public or private sector, as well as individuals managing projects or programmes.
Effective risk management is likely to improve performance against objectives by contributing to:
- Fewer sudden shocks and unwelcome surprises
- More efficient use of resources
- Reduced waste
- Reduced fraud
- Better service delivery
- Reduction in management time spent fire-fighting
- Better management of contingent and maintenance activities
- Lower cost of capital
- Improved innovation
- Increased likelihood of change initiatives being achieved
- More focus internally on doing the right things properly
- More focus externally to shape effective strategies.
M_o_R® is a route map for risk management, bringing together principles, an approach, a set of interrelated processes, and pointers to more detailed sources of advice on risk management techniques and specialisms.
It also provides advice on how these principles, approach and processes should be embedded, reviewed and applied differently depending on the nature of the objectives at risk. An effective framework based on four core concepts:
- M_o_R Principles – these are essential for the development of good risk management practice. They are all derived from corporate governance principles in the recognition that risk management is a subset of an organization’s internal controls.
- M_o_R Approach – the principles need to be adapted and adopted to suit each individual organization. Accordingly, a company’s approach to the principles needs to be agreed and defined within a risk management policy, process guide and strategies, and supported by the use of risk registers and issue logs.
- M_o_R Processes – there are four main process steps, which describe the inputs, outputs and activities involved in ensuring that risks are identified, assessed and controlled. Embedding and reviewing M_o_R – having put in place the principles, approach and processes, an organization needs to ensure they are consistently applied and that their application undergoes continual improvement in order for them to be effective.
M_o_R has been adopted by hundreds of organizations worldwide. Equally applicable to large and small organizations in the public and private sectors, clients include:
- British Telecom
- Ministry of Defence